UNIVERSITY 
OF  FLORIDA 
LIBRARY 


■MS  VOLUME  WS^ttH 

«K?^«smof 

nmOK  LIBRARIES. 


I' 


PANAMA  CANAL 
TRAFFIC  AND  TOLLS 


BY 


EMORY  R.  JOHNSON 

SPECIAL  COMMISSIONER  ON  PANAM.'V  CANAL 
TRAFFIC  AND  TOLLS 


WASHINGTON 
1912 


LETTER  OF  SUBMITTAL. 


Washington,  D.  C,  August  7,  1912. 

Sir:  I  have  the  honor  to  submit  herewith  a  report  upon  Panama  Canal  TrafHc  and  Tolls.  The  report  is 
made  pursuant  to  your  instructions  of  September  1,  1911,  which  were  to  bring  "up  to  as  late  a  date  as 
practicable  the  data  contained  in  the  Report  of  the  Isthmian  Canal  Commission  for  1899-1901,  and  also  to 
formulate  rules  and  regulations  governing  the  measurement  of  ships  going  through  the  canal,  and  to  make 
an  investigation  and  recommendation  regarding  the  tolls  to  be  charged." 

It  was  deemed  advisable  to  prepare  two  reports,  one  upon  Traffic  and  Tolls  and  another  upon  The  Measure- 
ment of  Vessels.  The  latter  report,  which  is  in  course  of  preparation,  will  explain  the  regulations  governing 
the  measurement  of  vessels  in  the  United  States,  Great  Britain,  and  Germany,  and  at  the  Suez  Canal.  The 
report  will  also  include  a  set  of  rules  recommended  for  the  measurement  of  vessels  that  are  required  to  pay 
tolls  for  using  the  Panama  Canal. 

The  conclusions  reached  as  the  result  of  the  investigation  and  the  recommendations  that  follow  from  the 
conclusions  reached  are  presented  in  Chapters  Xll  and  XIII  of  the  following  report.  It  is  recommended  that 
merchant  vessels  be  required  to  pay  tolls  upon  net  tonnage  so  measured  as  to  express  their  actual  earning 
capacity,  and  that  warships  be  charged  tolls  based  upon  displacement  tonnage.  The  rates  of  toll  recommended 
are  $1.20  per  net  ton  for  merchant  vessels  carrying  cargo  or  passengers,  with  a  reduction  of  40  per  cent  in  the 
rate  for  vessels  in  ballast,  and  50  cents  per  displacement  ton  for  warships.  It  is  recommended  that  no  tolls 
be  levied  upon  passengers. 

In  submitting  this  report  I  wish  gratefully  to  acknowledge  the  aid  I  have  received  from  my  assistant, 
Grover  G.  Huebner,  Ph.  D.,  University  of  Pennsylvania.  Without  his  help  the  task  would  have  been  more 
laborious  and  would  have  taken  more  time. 

Very  respectfully,  Emory  R.  Johnson, 

Special  Commissioner  on  Panama  Traffic  and  Tolls. 
.     The  Secretary  of  War. 


59d35 


Digitized  by  the  Internet  Archive 

in  2010  with  funding  from 

Lyrasis  IVIembers  and  Sloan  Foundation 


^ 


http://www.archive.org/details/panamacanaltraffOOjohn 


CONTENTS. 


Part  l.~Traffic. 

P»g9. 

Chapter    ^.  Distances  via  the  Panama  Canal  and  alternative  routes 3 

JI.  Tonnage  of  the  vessels  employed  m  the  commerce  that  might  have  advantageously  used 

the  Panama  Canal  in  1909-10 .  19 

VIII.  Increase  in  available  canal  traffic,  1899  to  1914-15 37 

[V.  The  relation  of  the  Panama  Canal  to  the  traffic  and  rates  of  American  railroads _iZ- 

V.  The  Suez  Canal,  its  dimensions,  and  its  financial  and  traffic  history  _ 89 

VI.  The  Kaiser  WUhelm  Canal,  its  traffic,  toUs,  and  revenues 105 

VII.  The  Manchester  Canal,  its  history,  finances,  and  traffic 117 

VIII.  The  Amsterdam  Canal,  construction,  costs,  and  traffic 131 

Part  II. — Tolls  and  Revenue. 

IX.  The  basis  or  unit  of  toU  levies  upon  merchant  ships  and  war  vessels 147 

X.  Coaling  facilities  and  coal  costs  via  the  Panama  Canal  and  alternative  routes 155 

XI.  Relation  of  tolls  to  the  volume  of  traffic  through  the  canal;  toUs  the  traffic  will  bear 171 

XII.  Panama  Tolls  I,  principles  and  considerations  that  should  control  in  fixing  tolls 191 

XIII.  Panama  ToUs  II,  rates  of  toU — gross  and  net  revenue 203 


APPENDICES. 


Appendix        I.  Report  on  the  industrial  and  commercial  value  of  the  Isthmian  Canal,  by  Emory  R. 

Johnson,  Ph.  D.  (Reprinted  from  Report  of  Isthmian  Canal  Commission,  1899-1901) .  217 

II.  ToUs  and  other  charges  imposed  by  the  Suez  Maritime  Canal  Co 381 

III.  Statute  of  the  German  Empire  concerning  charges  for  the  use  of  the  Kaiser  WUhelm 

Canal,  June  20,  1889 387 

IV.  ToUs  and  other  charges  for  the  use  of  the  Kaiser  WUhehn  Canal 393 

V.  Schedule  of  port  charges  and  demurrage  fees  imposed  by  the  Kaiser  WUhelm  Canal 

Administration 401 

VI.  Manchester  Canal,  "ship  dues"  and  other  charges  payable  by  shipowners 409 

VII.  Manchester  Canal,  "toUs"  on  merchandise  and  other  charges  payable  by  merchants.. .  431 

VIII.  The  Panama  Canal  act  of  August  24,  1912 465 

Index 475 


LIST  OF  PLATES. 

LIST  OF  PLATES. 

Page  Plates  and  Charts. 

Page. 

Plate  A.  Transcontinental  rate  groups _. 60 

Plate  B.  Rate  zones  established  by  Interstate  Commerce  Commission  in  adjusting  rates  to  inter- 
mediate western  points 61 

Chart    I.  Gross  and  net  tonnage  of  vessels  passing  through  the  Suez  Canal,  1870-1911 Facing  95 

Chart   2.  Gross   and   transit   receipts,  net   earnings,  interest   amortization   and  dividends,  Suez 

Canal,  1870-1911 .- Facmg  102 

Chart    3.  Administration,  operating,  and  maintenance  expenses  of  Suez  Canal,  1870-1911 Facing  102 

Plate    C.  Port  of  Ijmuiden. Facing  135 

Folded  Plates. 


1.  Trade  routes  and  distances  by  existing  lines  and  by  the  Panama  Canal. 

2.  Points  equally  distant  from  New  York  and  from  Liverpool  via  the  Panama  and  Suez  routes. 

3.  Intercoastal  steamship  lines  and  water  routes. 

4.  Suez  Canal. 

5.  Suez  Canal,  types  of  cross  sections. 

6.  Kaiser  Wilhelm  Canal. 

7.  The  Manchester  Canal. 

8.  The  Manchester  Canal  and  connections. 

9.  The  Manchester  port  and  docks. 

10.  Amsterdam  or  North  Sea  Canal. 

11.  The  port  of  Amsterdam. 

12.  Coaling  stations  of  the  world. 


PART  ONE. 

TRAFFIC. 


CHAPTER  1. 

DISTANCES  VIA  THE  PANAMA  CANAL  AND 
ALTERNATIVE  ROUTES. 


CHAPTER  I. 

DISTANCES  VIA  THE  PANAMA  CANAI  AND  ALTERNATIVE  ROUTES. 

The  Panama  Canal  is  being  constructed  to  shorten  ocean  routes.  Relative  distances  via  Panama  and 
other  routes  will  mainly  determine  the  use  made  of  the  canal  and  the  toUs  that  may  be  charged  without  Umiting 
its  traffic;  hence  this  study  of  Panama  tonnage  and  tolls  should  start  with  the  tabulation  and  comparison  of 
distances  by  way  of  the  Isthmian  Canal  and  other  routes  between  Atlantic  and  Pacific  ports.  The  economy 
resulting  from  the  shortening  of  ocean  routes  is  measured  by  the  saving  in  the  time  vessels  take  to  carry  freight 
or  passengers  from  one  port  to  another.  ToUs  will  be  paid  by  ocean  carriers  to  reduce  the  time  and  expense 
of  performing  specific  transportation  services;  and,  theoretically,  the  toUs  charged  for  the  use  of  the  canal  may 
be  made  equal,  or  nearly  equal,  to  the  saving  effected  by  the  canal. 

Distance  and  time  of  voyage  between  the  ports  of  departure  and  destination  are  not  the  only  factors  deter- 
mining the  selection  of  routes.  The  longer  of  two  routes  may  be  the  more  profitable  one  if  there  be  a  larger 
volume  of  desired  traffic  to  and  from  intermediate  ports.  Of  two  competing  routes,  the  longer  one  may  be 
selected  if  it  has  the  larger  number  of  coaling  stations  and  the  lower  costs  for  fuel.  When  the  choice  is  between 
the  Panama  and  Suez  routes,  the  relative  toUs  charged  by  the  competing  canals  may  determine  the  direction  of 
traffic.  Lower  insurance  rates  may  influence  carriers  to  select  the  route  that  exposes  the  ship  or  cargo  to  the 
least  risk. 

In  calculating  the  volume  of  traffic  that  will  use  the  Panama  Canal,  and  particularly  in  discussing  the 
effects  which  toUs  may  have  in  diverting  sliipping  from  the  canal,  due  consideration  wiU  be  given  to  the  forces, 
other  than  length  and  steaming  time  of  alternative  ocean  routes,  that  give  direction  to  the  currents  of  ocean 
commerce.  The  factors  other  than  distance  and  time  are  merely  mentioned  in  tliis  coimection  to  indicate 
that  they  are  not  to  be  overlooked,  although  this  chapter  is  devoted  solely  to  a  comparison  of  the  Panama  and 
other  routes  as  regards  chstances  and  the  time  required  for  ocean  voyages. 

The  Hydrograpluc  Office  in  the  Department  of  the  Navy  courteously  suppUed  aU  figures  for  distances 
contained  in  the  foUo%ving  tables.  A  blank  form  for  each  of  the  first  10  tables  was  submitted  to  the  Hydro- 
graphic  Office  which  compiled  the  figures  and  checked  them  up  with  special  care.  The  distances  as  stated 
may  be  accepted  as  reliable  and  as  revised  to  date — the  end  of  1911. 

The  14  tables  presented  in  this  chapter  are  intended  to  show  three  tilings: 

(a)  The  distances  in  nautical  miles  for  fuU-powered  steamers,  between  large  commercial  ports,  inclucUng 
calls  en  route  at  designated  points.  The  purpose  has  been  to  give  the  length  not  of  the  shortest  navigable 
course,  but  of  a  route  by  way  of  one  or  more  of  the  commercially  important  ports  at  which  vessels  ortlinarily 
call.  No  attempt  has  been  made  to  include  all  intermediate  ports  and  coaling  stations  at  which  steamers  call. 
Some  ships  stop  at  many,  some  at  but  few  places  on  the  way  between  distant  ports.  In  the  case  of  each  route, 
the  tables  state  what,  if  any,  intermediate  ports  are  included. 

(b)  The  net  reduction  (stated  in  nautical  miles)  effected  by  the  Panama  Canal  in  the  length  of  ocean 
routes.  The  comparison,  in  each  instance,  is  between  the  Panama  and  the  shortest  alternative  route;  but 
when  a  course  longer  than  the  most  direct  one  is  largely  used  by  commerce — as  that  from  Europe  to  Austral- 
asia around  the  Cape  of  Good  Hope  instead  of  the  one  \aa  Suez — the  discussion  accompanying  the  table  com- 
pares the  distances  by  way  of  each  possible  traffic  highway. 

(c)  The  net  saving  in  days  of  steaming  time  that  vessels  of  chfferent  speeds  can  make  by  using  the  Panama 
Canal.  Having  calculated  the  number  of  days  a  vessel  can  save  by  taking  the  canal  route  and  having  ascer- 
tained how  many  dollars  a  day's  reduction  in  the  time  of  a  voyage  is  worth  to  the  owners  or  operators  of  a 
vessel,  it  is  possible  to  determine  the  maximum  toUs  that  may  be  levied  without  preventing  the  ship  from 
using  the  canal.  The  tables  in  this  chapter,  showing  the  number  of  days  that  vessels  can  save  by  using  the 
canal  are  made  the  basis  of  much  of  the  reasoning  in  Chapter  XI  upon  "The  relation  of  tolls  to  the  volume  of 
traffic  through  the  canal." 

5 


0  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

In  the  tiiblni  of  dktiiiui'b  all  figuii«  are  fur  uuutictil  inilt«  ((i,()SO  fc«t)  niul  uot  in  statute  or  land  mile« 
(5,2K0  fwt).  Fur  routioi  vin  Paimuiu  ih«  Im^ftli  uf  llm  tranal — 41  nautical  mile* — i»i  indudml,  Tlio  Suoa 
C^nal  ib  rtM'ktuittil  at  K7  natitii  at  uultv,  that  bt-ing  tlu^  ilititance  via  tht'  raiml  uikI  lak(«  between  the  MetUter- 
ranean  and  the  Ued  Sea. 

Tlio  figuif«  fur  diotaai'tvi,  ait  given  in  thiia  aat-tion,  do  not  quite  af^rt-e  with  thoae  in  the  n^jHirt  of  the 
letlaaian  Canal  C'ouimieieiun  uf  1001,  upon  "The  Indutitrial  and  Coninuni-ial  Value  of  thn  iHtluuian  Canal," 
which  in  r«|irinted  a^  Appendix  1  of  thid  report.  In  the  report  of  I'JUl,  th«  length  of  the  Panama  Canal  waa 
taken  to  bu  43  nautical  inih-ts,  itiul  of  iht^  .Suez  Canal  HS  niilei).  However,  the  Ifitgth  of  an  ocean  route  docM  not 
necru>«arily  remain  constant  frtun  year  to  year.  The  dreilging  of  a  new  harbor  entrance — ah  the  Anibroae 
Channel  at  New  York — may  uliglitly  shorten  a  route;  or  experience  in  navigation  may  cauae  Mtcamei^  to  modify 
their  regular  cimi^e  from  one  port  to  another.  The  tliiitance  from  New  York  to  .San  Fraiicihco  via  Panama, 
for  iiutance,  wan  btated  upon  the  llydrographic  (Hhce  chartji  in  18'J'J  to  be  5,2t)9  milea,  wliile  the  1911  editioo 
of  the  chart  make>>  the  <hntance  5,'itjj!  mih^,  and  both  ligurtth  are  undoubteilly  correct  for  their  timo. 

On  Plate  1,  in  the  pocket  at  end  of  tliiit  report,  the  moht  important  routt^ii  via  the  Panama  C'anal  are  charted 
and  the  iltatanci^  via  thcote  and  the  alternative  routes  are  Atated.  The  map  coataitm  h-iM  information  than 
lb  to  be  fountl  in  the  tablen,  but  may  well  be  cortbulted  in  connei-tiun  with  the  tableii. 

Tablb  I.— DISTAN'CES  (IN  NAUTICAL  MILES)  VIA  PANAMA  t'ANAL  AND  STRAITS  OF  MAGELLAN  liETWEEN  EASTERN 
PORTS  OF  THE  UNITED  STATES  AND  PORTS  OF  TUB  WEST  COASTS  OF  NORTH.  CENTRAL,  AND  SOUTH  AMERICA. 


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16,217 

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4,216 
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4.801 
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6,007 
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6,620 
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8,687 

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10,167 

3,168 
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2,400 
10.l« 

2.8U 
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3,684 
8,084 

4.223 
8,331 

4.4» 
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4,449 

12,726 

3,032 
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11,221 

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8,606 

8,126 

4.222 
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4,176 

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V^ 

PANAMA   CANAI,  TKAKKIC  AND  'I'OLI/S. 


Tlio  firHl,  (jildo  Hl.iif.dM  IJk^  <liH(,iinci'H  in  iiiuili<'iil  iiiiI(«m,  vni  IIki  I'liiiiiinii.  Ciimil  iitnl  llic  Shiiiln  of  Mii.(r,,|||iii, 
from  II  n«|)nw(Miliiliv(i  |nirln  (if  Uki  Atliiiilic  luiil  (itiif  HnilHtiinlM  of  Hid  I'nilcd  Sdilcn  I'oiIIiuhI,  Mc,  Ik  (In! 
V(ihI,(iii,  'l\\x.,  iiicliiHiv(«  t<i  liiti  lliiwiiiiiin  IhIiukIm  iukI  (,o  I'.i  (•uiniiK'rciiil  ci'iiIi-ih  on  (,li«  riifilif,  coiihI.  (if  Ndi'lli 
and  Sonlii  Ainciica.  TIk^  \vi>hI.  coaHl.  cilicH  Hclcclcd  iiichidd  iSillui,  lint  cliicf  poll,  of  AIiimIui,  INii'I.  'rowiiHi'iid, 
al.  t\)o  ^,'ii((^wiiy  Id  l'ii;,'(>l.  Sound,  I'drllund,  I  lid  porl,  (if  liid  Colnniliia  Vidl(>v,  Sun  l''iii,iicirico  and  San  Diof/o  for 
C(Mitral  and  Hoiitli(«rii  California,  Acii.|iiilco,  an  iinporlaiil,  Mexican  porl,  ( iiiiiyiu|nil  and  Cidliio,  llin  cliicf  Iradc 

C(Mi(,(^rH  (if  IO(pia(lor  and  I'ciii,  l(pii(pic,  oi f  I  lie  two  \n\y,ii  nili'iil(«  Hliippini^  poiiiln  in  iiorllicrn  <  'liilc,  Valpariiimi, 

llid  main  ncapdi'l,  of  lli(>  ccnliid  a;^iiciill  iiiiil  portion  of  ( 'liilc,  and  ( 'oronci  ('i'ldcnliiiiino),  Mic  (inly  MliU.ion  on  Ml(^ 
wchI.  c(iaMl,  of  SoiiMi  AnKM'icii  al<  vvliicli  lar^^c  (|uaiii.il'i(^H  of  local  coid  can  lie  oliliiincd 

('(ii-iincl  in  i(icar(M|  al,  IM"  A'i,'  hoiiIIi  liil.iriide.      Alioiil.  '..'()()  niili<H  farl.lier  nonlli,  »  hi  lie  leiui  limn   in"  fi Ilie 

IO(pial.iir  and  iWMU'ly  I ,()()()  niili^M  froin  \\w  Sli'ailM  of  Ma).;ellii,ii  '\w  Vaidiviii,  nl  llie  lUMilliern  iiiiii;'iii  ol'  llie  I'liiniiier 
cially  iinporl-anl,  pari,  of  wenl-erii  Soiilli  America.  IJIlIc,  if  any,  Irade  enn  lie  (levdnped  iilniic;  I  he  ( 'IhIimii  (diinl, 
HduUi  of  10".  I'liiilii  AremiH  on  Ihc  SIiimIm  of  Ma(;elliui  in  now,  and  may  aflcr  l-he  opeiiin^^  (if  l,li(\  raiiaina 
(!ii,iiii,l  colli, iniK)  f.o  he,  iMi  expdi'l,  cily  a,nd  a  Iraimfcr  and  Miipply  Mliilidii  (if  Hdiiic  imp(irl,aiii'c,  hiil.  (,Imi  cdin- 
iiicrcial  cenI.erH  (if  wcHlcrn  Soiil.li  America  will  alwayM  he  iiorlii  (if  -JO"  mhiiIIi  hdihide. 

A  c.dmpariHdii  of  (liHl,anc(*H  via  I'aiianni.  and  Ihc  SlrailK  nf  Mii|^^llaii  liclweeii  lli(<  Alhmfie  (Inlf  nenhdiii'd  df 
l,!ic  llni(:ed  Slal,cH  and  (he  Tacilic  coaHl,  of  Norlli  and  Soiilh  America  can  he  more  reiidily  made  from  'I'lihle  II, 
wiiich  hIiiIi^h  (lie  niimher  (if  niilcM,  hy  (he  allcrnaliv c  r(iii(-(w,  fr(im  New  Vdrk,  NdrfdiU,  New  Orleium,  and  (hil- 
VCHidii      four  impor(juil,  commcreia!  foci      lo  Mix  ('(■prcHcidiU i ve  I'acilitr  porln: 

Tauw(  11.— DI.S'l'ANt^lOS  MN    NAII'I'K'AI,   MII.K.Sj   KIIOM    A'l'hANTH:   ANI>  (IIU.K   I'olCI'H  d!''  'Clll';   IINriKIl  H'I'ATKH  '!'(» 

I'oiiT.s  (IN  'I'lii';  u K.-i'i'  coAM'i'H  OI''  Nuirni,  (1';n'I'I(AI,,  anh  hoiiiii  amijiica, 


I'll.fL.W. I    ,r,   ..,,, 

Bun  KruiKilwii) 

Bon  Juwi  ilu  (iunUiiiinlii., 

Iqultiua 

VtlpaniM 

OoioimI. .......... ...... 


I'ni 

" 

nw   ViitU  vlii 

N.illolk  vl» 

Now  dilTOim  via 

(1»IV«lll«fl  vl»- 

MuhkIIiui, 

I'nhiiniii, 

MitKallftli, 

t'nilnlllit, 

MoHollnii, 

I'mittiiiH, 

Mitenlltill, 

n,ii;i',( 

i;i,iKir< 

/i,  KXI 

i:i,iw? 

ft.m 

l4,.rJI 

fi,  DM 

14,411'/ 

K'm 

i:i,  \\v< 

(i,  nn; 

ri.iiiiv 

4,  mm 

i;i,riiii 

•       4,  W 

1  ;!,'/■// 

i(,(Kt;i 

n.aiiH 

K,  yiw 

ll,IU(| 

%WH 

ll,W)4 

%m 

ii,b;i(i 

4,IKH 

u,  u» 

:i,  will 

«,ii«n 

%m 

V,AM 

a,  Am 

tt,?»0 

4,ia;i 

H,»IK) 

<,  ill 

W/i 

4,1104 

H,7IW 

4,  IM 

N,(i7a 

4,IW1) 

M,  l;ir, 

4,  ^M 

n,!*? 

4,JKI0 

»,M1 

4,  ,1114 

n,  •/■/■/ 

Tlir»  rediiclion  en'ect,ed  hy  Ihe  I'aiiama  Canal  in  (he  Icn^Mh  (if  idl  whIim'  runl.eM  hel.ween  (he  Adanl.ic  fJiill' 
H(!al)(iard  (if  IIk)  United  ,S(,ii,(,eH  and  I'acilic,  pdr(,H  iw  hIiowii  heldw  in  deliiij  in  'I'ahle  XI.  'f'he  diidiinee  f/dni  New 
York  (,(»  San  KnuiciHCd,  hy  way  of  (he  S(,rail,H  of  Mu{^'lhui,  \h  j.'j.l.'in  iiaiilical  mileii,  hy  way  df  I'anama  tt;M\'l 
iriilcH,  Ui((c,anal  rdiii.e  hein^^;  7,H7.'{  milen  Hh(irl,er.  TheHaviii!^  he(,w(»ni  New  Orleaim  and  San  iM'iuiciMc.d  in  f/realiM' 
S,H(iH  miii(,ical  milcM  (he  MaiM-lian  ronl.e  heinp;  \u\\\'y\-  and  (he  canal  niiidi  itlidr((^r  frum  New  Orleium  Uiaii 
from  Ni!W  Yurk.  The  ciuial  will  reduce  (,he  diiilance  from  New  Ynrk  In  (he  Chilian  iiilraUi  porl,,  hpiirpie,  n,!.')!) 
nan(,ieal  niilcH,  (,d  ValjiaraiHd  .'J, 7-17  milcH,  (,d  Cdniiiel  .'!, '„",)(!,  and  ViJdivia  ahoul,  '/.DOO  imlcii,  I'or  New  Oileann 
and  dllier  (iiilf  porl.H,  (,li'!  rediic.(,ion  w  ^!;rea(,(•l■, 

Since  (he  \)i\\.r\\\\\\\\y>  of  |<)()7,  (rallic  hel.ween  New  York  and  I'acilic  pdrlii  of  (he  Cni(i'(|  S(a(ci)  fiiichidmj/ 
Hawaii)  liaH  herm  handled  in  increiiMinii;  vdliime  hy  way  of  l.he  lMl,limn)4  (if 'ri^hnanlcpec.  The  American  Hawaiian 
Sl,eamHhi|»  Cd.  operal.rtH  a  (le(d,  df  veimelM  he(,we.(!n  New  Vdrk  and  \'wxU>  Mexicd  and  and(.lier  llce(,  he(,ween 
iSalina  Cniz  and  San  KranciHco  and  I'lij^el,  Sdimd,  and  Ixttweeii  Salina  (!rii/-  and  Hawaii,  A  railrdad  WVI  uladiln 
inilcH  Cl(i7  miiil.ical  milcHj  in  Icnt^'lh  c()nnec,(,M  l'iier(,d  Mr^xic(i  and  Salina  <'\\v/,.  TIki  Teliiiati(,epec,  rdiif.e  and  id* 
railroad  now  rt(imp(;(,e  wi(,li  (he  niiil.e  via  (ho  lM(,lijriim  df  ranania  and  (he  railniad  from  Cdlon  (,d  (he  l'dr(.  of 
Balhda  n'anaina).  Holli  of  (lieHo  (ranw- litlhmian  railwayn  are  now  liandlins^  a  ri-lalively  lar|.v  (dtina.t^e  of 
tlirduj.';!!  (,ra(Iic,.  AfI.er  (he  canal  in  dpened,  (Iki  Teliiianl.epec,  rdii(,«)  will  he  a,  powiihle,  (hdiit/li  iiol,  a  prohahhr, 
Cdmpe(,i(,dr  of  (,lie  I'anama  ('anal.  The  ciimparal.ive  diuduicen  via  (,lie,  (,wd  roidc;!  from  New  Yoii,  and  N'l  w 
Oi'lcuiiH  to  Sati  Kraneimid  and  lloiidliilii  are,  Mlwiwii  in  Tahio  III, 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  III. 


-DISTANCES  (IN  NAUTICAL  MILES)  FROM  NEW  YORK  AND  NEW  ORLEANS  TO  SAN  FRANCISCO  AND 
HONOLULU  VIA  THE  ISTHMUS  OP  TEHUANTEPEC  AND  VIA  PANAMA. 


To- 

San  Francisco  vis- 

Honolulu  via— 

Isthmus  of 

Tehuan- 

tepec. 

167 

Panama. 

Isthmus  of 
Tehuan- 
tepec. 

167 

Panama. 

4,246 
3,110 

5,262 
4,683 

5,691 
4,555 

6,702 
6,123 

The  distance  from  New  York  to  San  Francisco  is  1,016  nautical  miles  less  via  Tehuantepec  than  by  way  of 
Panama,  and  from  New  Orleans  1,573  nules  shorter.  To  Honolulu,  the  distance  via  Tehuantepec  is  1,011  nautical 
miles  less  from  New  York  and  1,568  miles  less  from  New  Orleans.  These  differences  in  distance  will  not  enable 
the  Tehuantepec  route  to  compete  with  the  Panama  Canal.  The  average  cost  of  transferring  freight  from  the 
hold  of  a  ship  on  one  side  of  the  Isthmus  of  Tehuantepec  to  the  hold  of  a  sliip  on  the  other  side  could  hardly 
be  brought  below  $2.50  per  cargo  ton — the  present  costs  are  said  to  be  more  than  this.  A  toll  at  Panama  of 
$1.20  per  vessel-ton,  net  register,  would  amount  to  about  $0.60  a  ton  on  cargo;  and,  thus,  the  cost  of  getting 
cargo  from  ocean  to  ocean  would  be  about  $2  per  ton  greater  at  Tehuantepec  than  at  Panama.  The 
double  handling  of  commodities,  with  the  unavoidable  breakage  and  damage  incident  thereto,  would  further 
place  the  Tehuantepec  route  at  a  disadvantage  in  competing  for  traffic  against  the  through  sei-vice  without 
breaking  bulk,  by  way  of  the  canal.  Moreover,  the  time  required  to  handle  freight  from  New  York  to  San 
Francisco  would  be  but  httle  less  via  Tehuantepec  than  via  the  canal.  As  vessels  require  about  two  days  to 
discharge  and  two  to  load,  the  average  detention  of  traffic,  due  to  transfer  from  ocean  to  ocean  across  the  Isth- 
mus of  Tehuantepec,  will  be  about  four  days.  At  Panama,  a  ship  can  pass  through  the  canal  in  less  than  half 
a  day;  and,  should  another  half  day  be  taken  for  coaling,  the  total  detention  will  not  exceed  one  day. 

The  Tehuantepec  Railway  may  possibly  have  a  fair  volume  of  traffic  after  the  canal  is  opened.  Coastwise 
trade  for  some  distance  up  and  down  the  two  seaboards  will  center  at  SaUna  Cruz  and  Puerto  Mexico,  and  goods 
will  be  transferred  across  the  Isthmus,  in  part,  for  sale  in  nearby  markets  and  in  part  for  shipment  across  the 
sea.  The  Tehuantepec  Railway  will  assist  the  development  of  southern  Mexico  and  northern  Central  America, 
and  the  railroad  will,  in  consequence,  handle  an  increasing  tonnage. 

Table  IV.— DISTANCES   (IN  NAUTICAL  MILES)   FROM   EUROPEAN   PORTS  TO   PACIFIC  PORTS   OF  AMERICA  VIA 

PANAMA  AND  STRAITS  OF  MAGELLAN. 


Sitka  via  San  Francisco 

Port  Townsend  via  San  Francisco 

Portland  via  San  Francisco 

San  Francisco 

San  Diego 

Acapulco 

San  Jose  de  Guatemala 

Honolulu 

Guayaquil 

Callao 

Iquique 

Valparaiso 

Coronel 


7,836 
7,434 
6,017 
5,477 
9,276 
5,384 
5,937 
6,578 
7,207 
7,413 


Panama.  Magellan. 
4,691  7,314 


14,804 
14,272 
14, 152 
13, 502 
13,110 
11,891 
11,605 
13, 679 
10,582 


9,510 
8,747 
8,502 


Panama.  Magellan. 
5, 110  7, 695 


9,657 
9,125 
9,005 
8,355 
7,953 
6,536 
5,996 
9,795 
5,903 
6,456 
7,097 
7,726 
7,932 


15,185 
14,653 
14,533 
13,883 
13, 491 
12, 272 
11,986 
14,060 
10,963 
10,361 
9,891 
9,128 


6,274 
5,734 
9,533 
5,641 
6,194 
6,835 
7,464 
7,670 


Panama.  Magellan. 
4,848  7,433 


14,923 
14,391 
14, 271 
13,621 
13,229 
12,010 
11,724 
13,  798 
10, 701 
10,099 


Bordeaux  via— 


8,536 
7,886 
7,484 
6,067 
5,527 
9,326 
5,434 
5,987 
6,628 
7,257 
7,463 


Panama.  Magellan, 
4,641  7,074 


14,564 
14,032 
13, 912 
13,262 
12,870 
11,651 
11,365 
13,439 
10,342 
9,740 
9,270 
8,507 
8,262 


Panama.  Magellan. 
4,376  6,383 


8,391 
8,271 
7,621 
7,219 
5,802 
5,262 
9,061 
5,169 
5,722 
6,363 
6,992 
7,198 


13,873 
13,341 
13,221 
12,571 
12,179 
10,960 
10,674 
12,748 
9,651 
9,049 
8,579 
7,816 
7,571 


PANAMA  CANAL  TEAFFIC  AND  TOLLS. 


9 


The  relative  distances  via  the  Panama  Canal  and  the  Straits  of  Magellan  from  Europe  to  the  13  selected 
American  Pacific  ports  are  indicated  in  Table  PV.  Instead  of  giving  distances  from  Plymouth,  as  is  customary 
in  compiling  such  tables,  the  figures  state  the  number  of  miles  from  four  important  ports  so  located  that  dis- 
tances from  them  represent  the  distances  from  the  leading  commercial  districts  of  northwestern  Europe.  The 
eflFect  of  the  canal  upon  the  length  of  the  routes  from  southern  Europe  to  Pacific  America  is  illustrated  by 
stating  the  distances  from  Gibraltar,  the  sentinel  at  the  Mediterranean  gateway. 

The  reductions  which  the  Panama  Canal  will  make  in  the  length  of  ocean  routes  from  Europe  to  Hawaii 
and  the  west  coast  of  North  and  South  America  are  stated  in  Table  XII.  The  canal  will  bring  San  Francisco 
Portland,  and  Puget  Sound  ports,  and  British  Columbia,  5,666  nautical  miles  nearer  to  Liverpool,  5,528  miles 
closer  to  Antwerp  and  Hamburg,  and  will  make  Gibraltar  4,950  miles  less  distant.  To  Iquique,  tlae  principal  ship- 
ping point  for  nitrate — the  tonnage  of  which  is  and  will  be  larger  than  that  of  any  other  single  item  of  traffic — 
the  canal  route  will  be  shorter  than  the  Magellan  route  by  2,932  nautical  miles  for  Livei-pool,  2,794  miles  for 
Hamburg  and  Antwerp,  2,642  miles  for  Bordeaux,  and  2,216  miles  for  Gibraltar  and  the  Mediterranean  ports 
generally.  To  Valparaiso,  the  canal  reduces  the  distance  from  Liverpool  1,540  miles;  from  Hamburg  and  Ant- 
werp, 1,402  miles;  from  Bordeaux,  1,250  miles;  and  from  Gibraltar,  824  miles.  Valparaiso  and  Coronel  are 
on  the  margin  of  the  canal's  zone  of  influence.  The  forces  that  will  determine  whether  the  traffic  between 
central  Chile  and  Europe  will  move  by  way  of  the  canal  or  through  the  Straits  of  MageUan  are  analyzed  in 
Chapter  XI  in  connection  with  the  discussion  of  the  tolls  the  Panama  traffic  will  bear. 

Table  V.— DISTANCES  (IN   NAUTICAL  MILES)   FROM  ATLANTIC  PORTS  OF  THE  UNITED  STATES  TO  YOKOHAMA, 
SHANGHAI,  AND  HONGKONG  VIA  PANAMA  AND  SUEZ. 


Yokohama  via — 


Panama, 
San  Fran- 
cisco, 
and 
Great 
Circle. 
7,781 


Panama, 
and 
Hono- 
lulu. 
8,079 


Suez, 
Colombo, 
Singa- 
pore, 
Hong- 
kong, and 
Shanghai, 
10,371 


Panama, 
San  Fran- 
cisco, 
and 
Great 
Circle. 
8,632 


Panama, 
Hono- 
lulu, 
and 
Yoko- 
hama. 
9,120 


Suez, 
Colombo 
Singa- 
pore, 
and 
Hong- 
kong. 
9,330 


Hongkong  via- 


Panama, 
San  Fran- 
cisco, 
Yoko- 
hama, 
and 
Shanghai. 
9,674 


Panama, 
Hono- 
lulu, 
Yoko- 
hama, 
and 


9,972 


Panama, 
Hono- 
lulu, 
Guam, 

and 
Manila. 
10,159 


Suez, 
Colombo, 
and 
Singa- 
pore. 
8,478 


Portland 

Boston 

New  York . . 
Philadelphia 
Baltimore. . . 

Norfolk 

Charleston. . . 

Savannah 

Jacksonville. 
Port  Tampa. 
Pensacola..., 

Mobile 

New  Orleans 
Galveston  . . , 


2,229 
2,185 
2,017 
1,989 
1,944 
1,822 
1,607 
1,606 
1,559 
1,260 
1,392 
1,419 
1,438 
1,542 


2,992 
3,030 
3,195 
3,337 
3,470 
3,348 
3,592 
3,665 
3,740 
4,255 
4,460 
4,500 
4,553 
4,729 


9,770 
9,725 
9,603 


9,340 
9,041 
9,173 
9,200 
9,219 
9,323 


10,308 
10,264 
10,096 
10,068 
10,023 
9,901 


9,638 
9,339 
9,471 
9,498 
9,517 
9,621 


13,363 
13,401 
13,566 
13,708 
13,841 
13,719 
13,963 
14,036 
14,111 
14,626 
14,831 
14,871 
14,924 
15,100 


10,861 
10,817 
10,649 
10,621 
10.576 
10,454 
10,239 
10,238 
10,191 
9,892 
10,024 
10,051 
10,070 
10, 174 


11,349 
11,305 
11, 137 
11,109 
11,064 
10,942 
10,727 
10,726 
10,679 
10,380 
10,512 
10,539 
10,558 
10,662 


12,322 
12,360 
12,525 
12,667 
12,800 
12,678 
12,922 
12,995 
13,070 
13,585 
13,790 
13,830 
13,883 
14,059 


11,903 
11,859 
11,691 
11,663 
11,618 
11,496 
11,281 
11,280 
11,233 
10,934 
11,066 
11,093 
11,112 
11,216 


12,201 
12, 157 
11,989 
11,961 
11,916 
11,794 
11,579 
11,578 
11,531 
11,232 
11,364 
11,391 
11,410 
11,514 


12,388 
12,344 
12, 176 
12,148 
12, 103 
11,981 
11,766 
11,765 
11,718 
11,419 
11,551 
11,578 
11,597 
11,701 


11,470 
11,508 
11,673 
11,815 
11,948 
11,826 
12,070 
12, 143 
12,218 
12,733 
12,938 
12,978 
13,031 
13,207 


The  distances  by  way  of  the  Panama  Canal  and  alternative  routes  between  the  North  Atlantic  and  the 
ports  of  eastern  Asia  and  of  Australasia  are  stated  in  a  series  of  six  tables,  V  to  X.  The  tables  are  of  especial 
significance,  because  in  Australasia  and  the  countries  along  the  Pacific  coast  of  Asia,  the  traffic  zones  of  the 
Suez  and  Panama  Canals  touch  or  overlap.  It  is  in  these  countries  that  the  two  great  highways  will  compete 
for  the  commerce  of  the  eastern  part  of  the  United  States  and,  to  some  extent,  for  the  trade  of  Europe  with 
the  Orient,  the  East  Indies,  and  Australasia. 

Table  V  states  the  distances  via  the  two  canals  from  the  14  selected  ports  of  the  Atlantic-Gulf  coast  of 
the  United  States  to  Yokohama,  Shanghai,  and  Hongkong,  i.  e.,  to  Japan  and  China.  The  table  is  so  con- 
structed as  to  state,  first,  the  number  of  nautical  mUes  from  each  of  the  14  ports  to  Panama  and  to  Gibraltar; 


10 


PANAMA  CANAL  TKAFFIC  AND  TOLLS. 


second,  the  distances  from  those  points  to  Yokohama,  Shanghai,  and  Hongkong  via  designated  routes;  and 
third,  the  through  distances  from  the  several  14  ports  to  Yokohama,  Shanghai,  and  Hongkong  via  designated 
ports  of  call.  Distances  are  given  for  two  courses  from  Balboa  across  the  Pacific,  one  via  San  Francisco  and  the 
Great  Circle,  so  modified  as  to  keep  the  course  south  of  the  Aleutian  Islands,  the  other  via  Honolulu.  The 
route  from  Balboa  (Panama)  to  Yokohama  by  way  of  San  Francisco  and  the  Great  Circle,  it  wUl  be  observed, 
is  298  miles  shorter.  The  lengtlis  are  given  for  three  routes  from  Panama  to  Hongkong,  one  via  San  Francisco^ 
Yokohama,  and  Shanghai  (which  is  the  shortest  of  the  three  named),  another  via  Honolulu,  Yokoliama,  and 
Shanghai,  and  a  tliird  by  way  of  Honolulu,  Guam,  and  Manila,  the  third  course  being  485  miles  longer  than 
the  one  by  way  of  San  Francisco,  Yokohama,  and  Shanghai. 

The  routes  for  which  distances  are  given  in  Table  V,  and  also 'in  succeeding  tables,  are  by  way  of  tlie  larger 
ports  at  which  vessels  regidarly  call.  WliQe  not  all  of  the  ports  at  wliich  vessels  may,  or  frequently  do,  stop 
are  included,  enough  intermediate  ports  are  designated  to  make  the  distances,  as  stated  in  the  tables,  consid- 
erably gi-eater  than  tiie  lengths  of  the  shortest  possible  routes  between  the  ports  of  departure  and  ultimate 
destination.  Commercial,  rather  than  theoretical,  routes  have  been  chosen,  both  via  the  Suez  Canal  and 
via  Panama. 

The  differences  in  the  distances  by  way  of  Panama  and  via  Suez  from  the  Atlantic-Gulf  seaboard  of  the 
United  States  and  Yokohama,  Shanghai,  and  Hongkong  are  stated  in  Table  XL  Yokohama  and  Shanghai 
are  well  within  tlie  Panama  traffic  zone.  The  distance  from  New  York  to  Yokohama  is  3,768,  and  to  Shanghai 
1,876,  miles  less  via  Panama  than  via  Suez.  In  the  case  of  cities  south  of  New  York  the  advantages  of  the 
Panama  route  are  still  gi-eater.  New  Orleans  being  5,705  miles  nearer  Yokohama,  and  3,813  miles  nearer 
Shanghai  via  the  Panama  route.  Hongkong  is  almost  equally  distant  from  New  York  via  the  Panama  and 
Suez  routes  as  designated  in  the  tables;  and  for  the  Atlantic  ports  of  the  United  States  south  of  New  York 
the  advantage  of  the  Panama  over  the  Suez  course  is  relatively  slight.  For  the  GuK  ports,  however,  the  saving 
by  the  American  Canal  to  Hongkong  is  substantial— 1,919  miles  for  New  Orleans  and  nearly  2,000  miles  for 
Galveston. 


Table  VI. 


-DISTANCES  (IN  NAUTICAL  MILES)  FROM  THE  ATLANTIC  PORTS  OF  THE  UNITED  STATES  TO  MANILA 
VIA  THE  PANAMA  AND  SUEZ  ROUTES. 


To  Manila  via— 

From — 

Panama, 
San  Fran- 
cisco, and 
Yokohama. 
9,531 

Panama, 
Honolulu, 

and 

Yokohama. 

9,829 

Panama, 
Honolulu, 
Yokohama, 
Shanghai, 

and 

Hongkong. 

10,603 

Panama, 

Honolulu, 

and 

Guam. 

9,528 

Suez, 
Colombo, 

and 
Singapore. 

8,394 

Portland '. 

11,760 
11,716 
11,548 
11,520 
11,475 
11,353 
11,138 
11,137 
11,090 
10,791 
10,923 
10,950 
10,909 
11,073 

12,058 
12,014 
11,846 
11,818 
11,773 
11,651 
11,436 
11,435 
11,388 
11,089 
11,221 
11,248 
11,267 
11,371 

12,832 
12,788 
12,660 
12,592 
12,547 
12,425 
12,210 
12,209 
12, 162 
11,863 
11,995 
12,022 
12,041 
12, 145 

11,757 
11,713 
11,545 
11,517 
11,472 
11,350 
11,135 
11,134 
11,087 
10,788 
10,920 
10,947 
10,966 
11,070 

11,386 
11,424 
11,589 
11,731 
11,864 
11,742 
11,986 
12,069 
12,134 
12,649 
12,864 
12,894 
12,947 
13,123 

Boston 

New  York 

PhUadelphia 

Baltimore 

Norfolk 

Charleston 

Savannah 

Jacksonville 

Port  Tampa 

Pensacola 

Mobile 

New  Orleans 

Galveston 



The  distances  from  the  Atlantic-Gulf  seaboard  of  the  United  States  to  Manila  via  Panama  and  Suez  are 
stated  in  Table  VI.  Manda,  like  Hongkong,  is  about  the  same  distance  from  New  York  by  each  of  the  competing 
canals,  the  advantage  being  slightly  in  favor  of  the  Panama  route.     New  Orleans  and  Galveston  are  about  2,000 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


11 


miles  nearer  Manila  via  the  Panama  than  via  the  Suez  Canal.  Four  routes  across  the  Pacific  from  Panama  to 
Manila  are  designated  in  the  table;  and  it  will  be  noted  that  the  distances  via  San  Francisco  and  Yokohama 
and  by  way  of  Honolulu  and  Guam  are  practically  equal.  Probably  the  route  most  followed  by  lines  of  freight 
vessels  bound  for  Manila  will  be  by  way  of  San  Francisco,  Yokohama,  Shanghai,  and  Hongkong,  the  distance 
from  New  York  to  Manda  by  this  route  being  12,055  miles. 

Table  VII.— DISTANCES  (IN  NAUTICAL  MILES)  FROM  THE  ATLANTIC  AND  GULF  PORTS  OF  THE  UNITED  STATES  TO 
AUSTRALIA  AND  NEW  ZEALAND  VIA  PANAMA,  THE  CAPE  OF  GOOD  HOPE,  AND  THE  STRAITS  OF  MAGELLAN. 


Adelaide  via — 


Tahiti, 
Sydney, 
and  Mel- 
bourne. 
8,SS7 


St.  Vin- 
cent and 

Cape 
of  Good 
Hope. 

9,736 


Melbourne  via — 


Panama, 
Tahiti, 

and 
Sydney. 
"8,375 


St.  Vin- 
cent, 
Cape 
of  Good 
Hope, and 
Adelaide. 
10,248 


Panama 

and 
Tahiti. 
7,794 


of  GOOQ 

Hope, 
Adelaide, 
and  Mel- 
boimie. 

10,829 


Wellington  via — 


Panama, 

and 
Tahiti. 
6,834 


St.  Vin- 
cent,Cape 
of  Good 
Hope, 
and  Mel- 
bourne, 
11,527 


Portland 

Boston 

New  York... 
Philadelphia 
Baltimore. . . 

Norfolk 

Charleston . . 
Savannah... 
Jacksonville. 
Port  Tampa. 
Pensacola... 

Mobile 

New  Orleans 
Galveston. . . 


2,804 
2,819 
2,914 
3,013 
3,093 
2,973 
3,110 
3,169 
3,199 
3,549 
3,754 
3,794 
3,847 
4,023 


11, 116 
11,072 
10,904 
10,876 
10,831 
10,709 
10,494 
10,493 
10,446 
10, 147 
10,279 
10,306 
10,325 
10,429 


12,540 

12,555 

12,650 

• 

12,749 

12,831 

12,709 

12,846 

12,905 

12,935 

13,285 

13,490 

13,530 

13,583 

13,759 


10,604 
10,560 
10,392 
10,364 
10,319 
10, 197 
9,982 
9,981 
9,934 
9,635 
9,767 
9,794 
9,813 
9,917 


13,052 
13,067 
13, 162 
13,261 
13,343 
13,221 
13,358 
13,417 
13,447 
13,797 
14,002 
14,042 
14,095 
14,271 


10,023 
9,979 
9,811 
9,783 
9,738 
9,616 
9,401 
9,400 
9,353 
9,054 
9,186 
9,213 
9,232 
9,336 


13,633 
13,648 
13,743 
13,842 
13,924 
13,802 
13,939 
13,998 
14,028 
14,378 
14,583 
14,623 
14,676 
14,852 


9,063 
9,019 
8,851 
8,823 
8,778 
8,656 
8,441 
8,440 
8,393 
8,094 
8,226 
8,253 
8,272 
8,376 


14,331 
14,346 
14,441 
14,540 
14,622 
14,500 
14,637 
14,696 
14,726 
15,076 
15,281 
16,321 
15,374 
15,550 


11,346 
11,315 
11,344 
11,391 
11,418 
11,296 
11,295 
11,327 
11,314 
11,462 
11,667 
11,707 
11,760 
11,936 


Vessels  from  the  Atlantic-Gulf  seaboard  of  the  United  States  to  Austraha  now  round  the  Cape  of  Good 
Hope,  the  distance  by  that  route  being  about  the  same  as  the  one  via  the  Suez  Canal.  After  the  Panama  Canal 
is  opened,  the  choice  mil  be  between  the  Good  Hope  and  Panama  routes.  Table  VII  states  the  distance  from 
the  14  selected  Atlantic-GuK  ports  of  the  United  States  to  the  three  principal  ports  of  Australia — Adelaide, 
Melbourne,  and  Sydney.  These  three  Australian  ports  are  located  on  the  southern  and  southeastern  coasts 
of  the  continent  and  vessels  from  the  United  States  (and  also  from  Europe,  whether  the  approach  be  via  the 
Cape  of  Good  Hope  or  via  the  Suez  Canal)  pass  along  the  southern  coast  of  Austraha.  Line  vessels  regularly 
call  at  Adelaide  and  Melbourne,  and  are  certain  to  proceed  to  Sydney,  which  is  the  largest  city  of  Austraha 
and  is  near  the  Newcastle  coal  fields.  Sydney  is  also  visited  by  most  chartered  vessels  engaged  in  the  Aus- 
trahan  trade.  Thus,  the  effect  of  the  Panama  Canal  upon  the  length  of  the  commercial  routes  from  the  eastern 
part  of  the  United  States  to  Austraha  is  to  be  measured  mainly  by  comparing  the  cUstances  via  the  Cape  of 
Good  Hope  and  by  way  of  Panama  to  Sydney.  As  is  show^i  below  in  Table  XI,  the  Panama  Canal  mil  bring 
Sydney  about  4,000  miles  nearer  N^ew  York  and  the  other  north  Atlantic  ports  of  the  United  States,  somewhat 
more  than  4,500  miles  nearer  to  Cliarleston  and  other  southern  Atlantic  cities,  and  5,500  miles  closer  to  New  Orleans 
and  Galveston.  The  cUstance  from  New  York  to  Melbourne  is  2,770  miles  less,  and  to  Adelaide  1,746  miles  less, 
by  way  of  Panama  and  Tahiti  and  Sydney  than  via  St.  Vincent  and  the  Cape  of  Good  Hope.  For  the  Gulf 
ports  the  difference  in  favor  of  the  Panama  route  is  about  1,500  miles  greater. 

At  present  the  shortest  all-water  route  to  New  Zealand  from  the  eastern  part  of  the  United  States  is  through 
the  Straits  of  Magellan.  The  distance  from  New  York  to  Welhngton  via  the  straits  is  11, .344  miles,  as  com- 
pared with  14,441  miles  via  St.  Vincent,  the  Cape  of  Good  Hope,  and  Melbourne.  By  way  of  the  Panama 
Canal  and  Tahiti  the  distance  from  New  York  to  Wellington  will  be  S,S51  miles,  or,  as  shown  in  Table  XI, 
34998°— 12 2 


12 


PANAMA  CANAL  TKAFFIC  AND  TOLLS. 


practically  2,500  miles  less  than  by  way  of  the  cape.     From  New  Orleans  and  Galveston  the  Panama  route  to 
Wellington  \vill  be  3,500  miles  shorter  than  the  Magellan  route. 

Table  VIII.— DISTANCES  (IN  NAUTICAL  MILES)  FROM  LIVERPOOL  VIA  THE   PANAMA   AND  SUEZ   ROUTES  TO 
AUSTRALIA,  NEW  ZEALAND,  THE  PHILIPPINE  ISLANDS,  CHINA,  AND  JAPAN. 


From  Liverpool  via— 


Suez  route. 
(To  Aden  4,608.) 


In  favor  of 

Suez  — , 


Adelaide... 

Melbourne. 

Sydney 

Wellington 

Manila 

Hongkong. 
Tientsin... 

Yokohama. 


6,634 

7,046 

7,627 

8,381 

5,093 

5,177 
6,769 


Aden,  Colombo,  and  Singapore. 


Aden,  Colombo,  Singapore,  Hongkong, 
and  Shanghai. 


11,142 

11,654 

12,235 

12,989 

9,701 

9,785 
11,377 


Panama,  Tahiti,  and  Sydney  . 
Panama  and  Tahiti 


13,478 

12,966 

12,385 

11,425 

14, 122 

13,957 
13,822 


-2,336 

-1,312 

-     150 

+  1,564 

-4,421 

-4, 172 
-2,445 


Panama  and  San  Francisco.. 


All  of  Asia  and  all  of  Australasia,  with  the  exception  of  New  Zealand,  will  be  nearer  Europe  by  way  of  the 
Suez  Canal  than  by  way  of  the  Panama  route.  The  distances  from  Liverpool  via  alternative  routes  to  Aus- 
traha,  New  Zealand,  the  Pliihppines,  Cliina,  and  Japan  are  stated  in  Table  VIII.  The  table  is  so  constructed 
as  to  show  (1)  the  distances  from  Aden  to  each  of  the  eight  designated  Pacific  ports,  (2)  the  distances  from 
Liverpool  to  Aden,  (3)  from  Liverpool  to  Panama,  (4)  the  entire  distance  from  Liverpool  to  the  designated 
Pacific  ports  via  the  Suez  Canal,  (5)  the  through  distances  from  Liverpool  via  Panama  to  each  of  the  trans" 
Pacific  destinations,  and  (6)  the  difference  in  the  distance  via  the  Suez  and  Panama  routes.  In  the  case  of 
each  route  the  intermediate  ports  of  call  are  designated. 

It  will  be  noted  that  wliile  all  of  Australia  is  nearer  Europe  via  the  Suez  Canal,  the  distance  from  Liverpool 
to  Sydney,  the  principal  port  of  Australia,  is  but  slightly  greater  via  Panama  than  via  the  Suez  Canal.  A 
line  connecting  all  points  in  the  Pacific  equally  distant  from  Liverpool  via  alternative  canal  routes  runs  some- 
what east  of  AustraUa,  weU  to  the  east  of  the  Pliilippines,  and  passes  east  and  slightly  north  of  the  island  of 
Nippon,  Japan. 

WeUington,  New  Zealand,  is  1,564  miles  nearer  Liverpool  via  Panama  than  via  Suez;  however,  the  com- 
petition for  the  trade  of  Europe  with  New  Zealand  will  not  be  mainly  between  the  Panama  and  the  Suez  routes. 
At  the  present  time  most  freight  vessels  outbound  from  Europe  to  Australia  and  New  Zealand  go  via  the  Cape 
of  Good  Hope,  wliile  passenger  and  express  steamers  take  the  Suez  route.  Vessels  leaving  New  Zealand  \vith 
fuU  cargoes  for  Europe  regularly  proceed  via  the  Straits  of  Magellan  wliich  route  to  Liverpool  is  1,014  miles 
shorter  than  the  route  via  Melbourne,  Colombo,  and  Suez.  After  the  Panama  Canal  is  opened  there  will  be 
active  competition  between  the  Panama  and  Magellan  routes  for  much  of  the  traffic  between  Europe  and  New 
Zealand.  The  distance  between  Liverpool  and  New  Zealand  via  the  Straits  of  Magellan  will  be  only  500  miles 
greater  than  via  the  American  Isthmus. 

From  Liverpool  and  Europe  generally  to  the  Pliilippine  Islands,  to  Cliina  and  Japan,  the  Suez  route  will 
be  much  shorter  than  the  Panama  route.  From  Liverpool  to  Manila  and  Hongkong,  the  Suez  route  will  be 
over  4,000  miles  shorter  than  the  route  via  Panama.  Northern  Cliina  via  the  Suez  Canal  will  be  2,500  miles 
nearer  to  Europe,  and  Yokohama  about  700  miles  nearer.  For  European  ports  south  of  the  EngUsh  Channel  the 
advantages  of  the  Suez  route  are  still  greater. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


13 


Table  IX.— COMPARATIVE  DISTANCES  (IN  NAUTICAL  MILES)  FROM  NEW  YORK  AND  LIVERPOOL  TO   NEW  ZEA- 
LAND, AUSTRALIA,  PHILIPPINES,  CHINA,  AND  JAPAN,  VIA  SUEZ  AND  PANAMA  CANALS. 


To- 

New  York  via  Panama  Canal. 
2,017 

Liverpool  via  Suez  Canal. 
4,608 

Differ- 
ence in 
favor  of 

Ports  of  call. 

Distance. 

Ports  of  call. 

Distance. 

Suez  -, 
Panama 

+■ 

8,851 

9,811 

10,904 

11,548 

11,383 
10,839 

11,248 

9,798 

Aden,  Colombo,  King  George  Sound, 
and  Melbourne. 

Aden,  Colombo,  King  George  Sotmd, 
Adelaide,  and  Melbourne. 

Aden,   Colombo,   and    King    George 
Sound. 

Aden,  Colombo,  and  Singapore 

do 

12,989 

12,235 

11,142 

9,701 

9,785 
10,637 

11,377 

11,678 

+4,138 
+2,424 

...do 

Adelaide 

Panama,  Tahiti,  Sydney,  and  Mel- 
bourne. 

Panama,  San  Francisco,  and  Yoko- 
hama. 

do 

+    238 

-1,847 
-1,598 

do  .      . 

Aden, Colombo,  Singapore, and  Hong- 
kong. 

Aden,  Colombo,  Singapore,  Hongkong, 
and  Shanghai. 

do 

202 

....do 

+1,880 

The  conditions  under  which  American  and  European  merchants  will  compete  for  the  trade  of  Australasia, 
the  Philippines,  China,  and  Japan,  after  the  opening  of  the  Panama  Canal,  are  indicated  in  Table  IX,  wliich 
compares  the  distances  from  New  York  via  the  Panama  Canal  with  the  distances  from  Europe  via  the  Suez 
Canal  to  the  eight  most  important  Pacific  ports  of  Australasia  and  Asia.  The  Panama  Canal  will  bring  Austra- 
lasia much  nearer  to  New  York  than  to  Liverpool.  The  distance  from  Liverpool  to  Sydney  via  Suez,  Colombo, 
King  George  Sound,  Adelaide,  and  Melbourne  will  be  2,424  mdes  greater  than  from  New  York  to  Sydney  via 
Panama  and  Taliiti.  Liverpool  will  be  4,138  miles  farther  than  New  York  will  be  from  Wellington,  New  Zea- 
land. In  the  Philippine  Islands  and  in  southern  and  central  Cluna,  however,  the  situation  will  be  the  reverse. 
The  PhUippine  Islands,  after  the  opening  of  the  Panama  Canal,  will  stiU  be  2,000  miles  nearer  to  northwestern 
Europe  than  to  the  eastern  part  of  the  United  States.  Northern  China  will  be  slightly  nearer  to  the  north 
Atlantic  seaboard  of  the  United  States  than  to  northwestern  Europe,  while  Yokohama  will  be  1,880  miles 
nearer  New  York  than  Liverpool. 

Plate  2,  in  the  pocket  at  end  of  this  report,  locates  the  points  equally  distant  from  New  York  and  from 
Liverpool  via  the  Panama  and  Suez  routes.  In  discussing  the  probable  movement  of  traffic  after  the  Panama 
Canal  has  been  put  into  operation,  attention  will  be  called  to  the  fact  that  the  line  equally  cUstant  from  a 
European  port  via  the  eastern  and  western  canal  routes  will  not  necessarily  be  the  boundary  between  the 
Suez  ami  Panama  Canal  traffic  zones.  For  reasons  that  are  discussed  at  length  in  succeeding  chapters  of  this 
Report  there  wiU  be  much  overlapping  of  traffic  routes  on  the  Pacific  shore  of  Asia. 


Table  X. 


-DISTANCES  (IN  NAUTICAL  MILES)  FROM  ATLANTIC  (AMERICAN  AND  EUROPEAN)  PORTS  TO  PACIFIC 

PORTS. 


New  York. . . 
Charleston... 
New  Orleans 

Liverpool 

Hambiu'g 

Gibraltar 


Via  Panama  Canal  to — 


San  Fran- 
cisco. 
3,245 


5,262 
4,852 
4,683 
7,836 
8,355 
7,624 


Iquique. 
1,987 


4,004 
3,594 
3,425 
6,578 
7,097 
6,366 


Valparaiso. 
2,616 


4,633 
4,223 
4,0.54 
7,207 
7,726 
6,995 


Honolulu. 
4,685 


6,702 
6.292 
6.123 
9,276 
9,795 
9,064 


Yokohama. 
7,660 


9,677 
9,267 
9,098 
12, 251 
12, 770 
12,039 


11,190 
10. 780 
10,611 
13,764 
14,283 
13,552 


Manila. 
9,370 


11,387 
10, 977 
10,808 
13,961 
14,480 
13, 749 


Sydnev  via 
Tahiti. 
7,794 

9,811 
9,401 
9,232 
12,385 
12,904 
12, 173 


Wellington 

via  Tahiti. 

6,834 


8,851 
8,441 
8,272 
11,425 
11,944 
11,213 


14 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


For  convenience  of  reference,  the  distances  from  three  ports  of  the  United  States  located  in  the  northern, 
middle,  and  southern  parts  of  the  Atlantic-GuK  seaboard  and  from  three  European  points  of  commanding  loca- 
tion to  nine  selected  ports  on  the  eastern  and  western  shores  of  the  Pacific  are  stated  in  summary  form  in  Table  X. 
The  table  gives,  first,  the  distances  from  Panama  to  the  Pacific  ports;  and,  second,  the  through  distances  from 
the  six  Atlantic  American  and  European  commercial  centers  to  the  nine  designated  Pacific  termini. 

From  the  foregoing  tables,  the  saving  in  ocean  distances  that  can  be  made  by  using  the  Panama  Canal 
instead  of  the  shortest  alternative  commercial  routes  has  been  calculated.  Table  XI  states  the  reduction,  in 
nautical  miles,  effected  by  the  Panama  Canal  in  the  length  of  all-water  routes  between  ports  of  the  Atlantic- 
Gulf  seaboard  of  the  United  States  and  ports  on  both  sides  of  the  Pacific  Ocean.  Table  XII  gives  the  reduction, 
in  nautical  mUes,  effected  by  the  Panama  Canal  in  distances  from  five  distributed  European  ports  to  fourteen 
important  Pacific  commercial  centers.  As  has  already  been  pointed  out.  New  Zealand  is  the  only  trans-Pacific 
country  from  wlxich  tUstances  to  Europe  will  be  sliortened  by  the  Panama  Canal.  In  the  columns  headed 
"remarks,"  the  routes  contrasted  in  Tables  XI  and  XII  are  designated  and  the  intermediate  ports  of  call  included 
in  each  route  are  named. 

Table   XI REDUCTION  (IN  NAUTICAL  MILES)   EFFECTED  BY  THE  PANAMA  CANAL  IN  LENGTH  OF  ALL-WATER 

ROUTES   BETWEEN    PORTS    OF   THE   ATLANTIC-GULF    SEAB.OARD    OF   THE    UNITED    STATES   AND    PACIFIC 
PORTS,  AMERICAN  AND  FOREIGN. 


Port- 
land 
(Me.), 


PhUa- 
del- 
phia. 


Port 


Port  Townsend 

Portland,  Oreg 

San  Francisco 

San  Diego 

Acapulco 

San  Jose  de  Guatemala. 

Honolulu 

Guayaquil 

Callao 

Iquique 

Valparaiso 

Coronel 

Yokohama 


Shanghai . 


7,663 
7,663 
7,663 
7,673 
7,871 
8,125 
6,400 
7,195 
6.040 
4,929 
3,537 
3,086 
3,353 


7,676 
7,676 
7,676 
7,686 
7,884 
8,138 
6,413 
7,208 
6,053 
4,942 
3,550 
3,099 
3,435 


7,873 
7,873 
7,873 
7,883 
8,081 
8,335 
6,610 
7,405 
6,250 
5,139 
3,747 
3,296 
3,768 


8,020 
8,020 
8,020 
8,030 


6,757 
7,552 
6,397 
5,286 
3,894 
3,443 
4,116 


8,020 
8,020 
8,020 
8,030 
8,228 
8,482 
6,757 
7,552 
6,397 
5,286 
3,894 
3,443 
4,110 


8,234 
8,234 
8,234 
8,244 
8,442 
8,696 
6,971 
7,766 
6,611 
5,500 
4,108 
3,657 
4,575 


8,267 
8,267 
8,267 
8,277 
8,475 
8,729 
7,004 
7,799 
6,644 
5,533 
4,141 
3,690 
4,049 


8,301 
8,301 
8,301 
8,311 
8,509 
8,763 
7,038 
7,833 
6,678 
5,567 
4,175 
3,724 
4,771 


8,748 
8,748 
8,748 
8,758 
8,956 


7,125 
6,014 
4,622 
4,171 
5,585 


8,821 
8,821 
8,821 
8,831 
9,029 
9,283 
7,558 
8,353 
7,198 
6,087 
4,695 
4,244 
5,058 


8,834 
8,834 
8,834 
8,844 
9,042 
9,296 
7,571 
8,366 
7.211 
6,100 
4,708 
4,257 
5,671 


8,868 
8,878 
9,076 
9,330 
7,605 
8,400 
7,245 
6,134 
4,742 
4,291 
5,705 


8,940 
8,940 
8,940 
8,950 
9,148 
9,402 
7,677 
8,472 
7,'317 
6,206 
4,814 
4,363 
5,777 


Via  San  Francisco.  Differ- 
ence between  Panama  and 
Magellan  routes. 


Do. 
Do. 
Do. 
Do. 
Do. 
Do. 


Do. 

Difference  between  routes  ria 
Panama,  San  Francisco, 
and  Great  Circle,  and  via 
Suez,  Colombo,  Singapore, 
Hongkong,  and  Shanghai. 

Difference  between  routes  via 
Panama,  San  Francisco, 
Yokohama,  and  via  Suez, 
Colombo,  Singapore,  and 
Hongkong. 

Difference  between  routes  via 
Panama,  San  Francisco, 
Yokohama,  and  Shanghai, 
and  via  Suez,  Colombo,  and 
Singapore. 

Difference  between  routes  via 
Panama,  San  Francisco, 
and  Y'okohama,  and  via 
Suez,  Colombo,  and  Singa- 
pore. 

Difference  between  routes  via 
Panama,  Tahiti,  Sydney, 
and  Melbourne,  and  via  St. 
Vincent  and  Cape  of  Good 
Hope. 


Distance  less  via  Suez. 


PANAMA  CANAX,  TRAFFIC  AND  TOLLS. 


15 


Table  XI — ^REDUCTION  (IN  NAUTICAL  MILES)  EFFECTED  BY  THE  PANAMA  CANAL  IN  LENGTH  OF  ALL-WATER 
ROUTES  BETWEEN  PORTS  OF  THE  ATLANTIC-GULF  SEABOARD  OF  THE  UNITED  STATES  AND  PACIFIC 
PORTS,  AMERICAN  AND  FOREIGN— Continued. 


From— 

To— 

Port- 
land 
(Me.). 

Bos- 
ton. 

New 
York. 

Phila- 
del- 
phia. 

Balti- 
more. 

Nor- 
folk. 

Charles- 
ton. 

Savan- 
nah. 

Jack- 
son- 

viU« 

Port 
Tampa. 

Pen- 
sacola. 

Mo- 
bUe. 

New 
Orleans. 

Gal- 
ves- 
ton. 

Remarks. 

2,448 
3,610 
2,283 

2,507 
3,669 
2,296 

2,770 
3,932 
2,493 

2,897 
4,059 
2,568 

3,024 
4,186 
2,640 

3,024 
4,186 
2,640 

3,376 
4,538 
2,854 

3,436 
4,598 
2,887 

3,513 
4,675 
2,921 

4,162 
5,324 
3,368 

4,235 
5,397 
3,441 

4,248 
5,410 
3,454 

4,282 
5,444 
3,488 

4,354 
5,516 
3,560 

Panama  Tahiti,  and  Syd- 
ney, and  via  St.  Vincent, 
Cape  of  Good  Hope,  and 
Adelaide. 

Panama  and  Tahiti  and  via 
St.  Vincent,  Cape  of  Good 
Hope,  Adelaide,  and  Mel- 
bourne 

Panama  and  Tahiti  and 
via  Straits  of  Magellan. 

Table  Xn REDUCTION  (IN  NAUTICAL  MILES)  EFFECTED  BY  THE  PANAALA  CANAL  IN  DISTANCES  FROM  EURO- 
PEAN PORTS  TO  THE  PORTS  OF  THE  WEST  COAST  OF  AMERICA  AND  TO  NEW  ZEALAND. 


Less  via 
Pan- 
ama. 


Less  via 
Pan- 
ama. 


Less  via 
Pan- 
ama. 


Less  via 
Pan- 
ama. 


Less  via 
Pan- 
ama. 


Sitka 

Port  Townsend 

Portland,  Oreg 

San  Francisco 

San  Diego 

Acapulco 

San  Jose  de  Guatemala. 

Honolulu 

Guayaquil 

Callao 

Iquique 

Valparaiso 

Coronel 

Wellington 


Magellan. 
Panama.. 

Magellan. 
Panama.. 

Magellan. 
Panama. 

Magellan. 
Panama.. 

Magellan. 
Panama. 

Magellan. 
Panama.. 

Magellan. 
Panama. 

Magellan 
Panama. 

Magellan 
Panama. 

Magellan 
Panama. 

Magellan 
Panama. 

Magellan 
Panama. 

Magellan 
Panama. 

Suez 

Panama. 


10,582 
5,384 


5,666 
5,666 
5,666 
5,666 
5,676 
5,874 
6,128 
4,403 
5,198 
4,043 
2,932 
1,540 
1,089 


5,528 
5,528 
5,528 
5,528 
5,538 
5,736 
5,990 
4,265 
5,060 
3,905 
2,794 
1,402 


13,353 
11,944 


9.629 
6,835 


13,091 
11,682 


5,528 
5,528 
5,528 
5,528 
5,538 
5.736 
5,990 
4,265 
5,060 
3,905 
2,794 
1,402 
951 


13. 439 
9,326 


5,376 
5,376 
5,376 
5,376 
5,386 
5,584 
5,838 
4,113 
4,908 
3,753 
2,642 
1,250 
799 


4,950 
4,950 
4,950 
4,960 
4,960 
5,158 
5,412 
3,687 
4, 482 
3,327 
2,216 
824 


Via  San  Francisco. 


12,732 
11,475 


Suez  route  via  Aden,  Colombo,  King 

George  Sound,  and  Melbourne. 
Panama  route  via  Tahiti. 


16 


PANAJVIA  CANAI^  TRAFFIC  AND  TOLLS. 


The  time  and  fuel  costs  wliich  vessels  can  save  by  using  the  Panama  Canal  instead  of  some  other  route  are 
the  measure  of  the  canal's  service  to  commerce.  The  saving  in  time  of  voyage  resulting  from  the  reduction 
which  the  canal  may  make  in  the  length  of  an  ocean  route  will  depend  upon  the  speed  of  the  vessel  and  upon 
the  number  of  hours  required  to  make  the  passage  through  the  canal.  In  Tables  XIII  and  XIV  the  number 
of  days  that  may  be  saved  by  using  the  Panama  Canal  is  calculated  for  vessels  of  five  different  speeds- — for 
steamers  of  9,  10,  and  12  knots,  wliich  ai-e  the  speeds  at  which  freight  vessels  are  operated,  and  for  ships  of 
14  and  16  knots,  the  speed  of  most  passenger  .vessels.  A  half  day  is  deducted  in  each  instance  to  allow  for 
the  detention  of  the  vessel  in  making  the  transit  through  the  canal.  When  the  comparison  is  between 
Panama  and  Suez,  it  is  assumed  that  the  passage  through  the  Suez  Canal  will  delay  a  vessel  a  haK  day.  It 
will  be  understood  that  the  length  of  each  route  through  the  Panama  or  Suez  Canal  (as  from  New  York  via 
Panama  to  San  Francisco  or  from  New  York  via  Suez  to  Hongkong)  includes  the  length  of  the  canal— 41  nau- 
tical miles  for  the  Panama  Canal  and  87  miles  for  the  Suez — and  that  the  half-day  taken  from  the  "number 
of  days  saved,"  as  stated  in  the  following  tables,  is  the  deduction  made  to  allow  for  the  longer  time  required 
to  make  the  distance  between  the  canal  terminals  than  would  be  required  to  steam  the  same  number  of  mUes 
at  sea. 


Table  XIII — NUMBER  OF  DAYS  SAVED,  FOR  VESSELS  OF  DIFFERENT  SPEEDS,  BY  THE  PANAMA  CANAL  ROUTE 
BETWEEN  THE  ATLANTIC-GULF  PORTS  OF  THE  UNITED  STATES  AND  PACIFIC  PORTS,  AMERICAN  AND  FOREIGN. 


From— 

To- 

New  York 

,  tor  vessels  of— 

Charleston 

,  for  vessels  of — 

Port  Tampa,  for  vessels 
of— 

New  Orleans,  for  vessels 
of— 

Galveston,  for  vessels  of— 

1 

1 
o 

1 

1 

1 

49 

i 

1 
o 

1 

42 

1 

42 

1 

42 

1 

42 

1 

o 

1 

42 
1 

1 

1 

42 

1 

o 

42 
1 

42 

43 

1 

1 

1 

o 

42 
1 

1 

42 

1 

Sitka 

Port  Townsend 

35.9 
35.9 
35.9 
35.9 
30.0 
36.9 
38.0 
30.1 
33.7 
28.4 
23.3 
16.8 
14.7 
16.9 
8.1 

32.3 
32.3 
32.3 
32.3 
32.3 
33.2 
34.2 
27.0 
30.3 
25.5 
20.9 
15.1 
13.2 
15.2 
7.3 

26.8 
26.8 
26.8 
26.8 
26.8 
27.5 
28.4 
22.4 
25.2 
21.2 
17.3 
12.5 
10.9 
12.6 
6.0 

22.9 
22.9 
22.9 
22.9 
22.9 
23.5 
24.3 
19.1 
21.5 
18.1 
14.8 
10.6 

9.3 
10.7 

5.1 

20.0 
20.0 
20.0 
20.0 
20.0 
20.  f 
21.2 
16.7 
18.7 
15.7 
12.9 
9.2 
8.1 
9.3 
4.4 

37.6 
37.6 
37.6 
37.0 
37.6 
38.5 
40.2 
31.7 
35.4 
30.1 
25.0 
18.5 
16.4 
20.7 
11.9 
3.1 
3.4 
10.4 
15.1 
20.5 
12.7 

33.8 
33.8 
33.8 
33.8 
33.8 
34.  0 
35.7 
28.5 
31.8 
27.0 
22.4 
16.6 
14.7 
18.5 
10.7 
2.8 
3.0 
9.3 
13.5 
18.4 
11.4 

28.1 
28.1 
28.1 
28.1 
28.1 
28.8 
29.7 
23.7 
20.5 
22.4 
18.6 
13.7 
12.2 
15.4 
8.8 
2.2 
2.4 
7.7 
11.2 
15.3 
9.4 

24.0 
24.0 
24.0 
24.0 
24.0 
24.6 
25.4 
20.2 
22.6 
19.2 
15.8 
11.7 
10.4 
13.1 
7.6 
1.9 
2.0 
6.6 
9.5 
13.0 
8.0 

20.9 
20.9 
20.9 
20.9 
20.9 
21.5 
22.1 
17.7 
19.7 
16.7 
13.8 
10.2 
9.0 
11.4 
6.5 
1.5 
1.7 
6.6 
8.3 
11.3 
6.9 

40.0 
40.0 
40.0 
40.0 
40.0 
40.9 
42.1 
34.1 
37.8 
32.5 
27.3 
20.9 
18.8 
25.3 
16.6 
7.8 
8.1 
14.0 
18.7 
24.1 
15.1 

35.9 
35.9 
35.9 
35.9 
35.9 
36.8 
37.9 
30.7 
34.0 
29.2 
24.5 
18.7 
16.9 
22.8 
14.8 
7.0 
7.2 
12.5 
16.8 
21.7 
13.5 

29.8 
29.8 
29.8 
29.8 
29.9 
30.6 
31.5 
25.5 
28.3 
24.2 
20.4 
15.6 
14.0 
18.9 
12.3 
5.7 
5.9 
10.4 
14.0 
18.0 
11.2 

25.5 
25.5 
25.5 
25.5 
25.5 
26.) 
26.9 
21.8 
24.1 
20.7 
17.4 
13.2 
11.9 
16.1 
10.4 
4.8 
5.0 
8.8 
11.9 
15.3 
9.6 

22.2 
22.2 
22.2 
22.2 
22.3 
22.8 
23.5 
19.0 
21.1 
18.1 
15.2 
11.6 
10.4 
14.0 
9.1 
4.2 
4.3 
7.7 
10.3 
13.4 
8.3 

40.5 
40.5 
40.6 
40.5 
40.6 
41.6 
42.6 
34.7 
38.4 
33.0 
27.9 
21.4 
19.4 
25.9 
17.1 
8.4 
8.6 
14.6 
19.3 
24.6 
15.6 

36.4 
36.4 
36.4 
30.4 
36.4 
37.3 
38.4 
31.2 
34.5 
29.7 
25.0 
19.2 
17.4 
23.3 
15.4 
7.5 
7.7 
13.1 
17.3 
22.2 
14.0 

30.2 
30.2 
30.2 
30.2 
30.3 
31.0 
31.9 
25.9 
28.7 
24.7 
20.8 
10.0 
14.4 
19.3 
12.7 
6.2 
6.4 
10.8 
14.3 
18.4 
11.6 

2.5.9 
26.9 
25.9 
25.9 
25.9 
20.5 
27.3 
22.1 
24.5 
21.1 
17.7 
13.6 
12.3 
16.5 
10.8 
5.2 
5.4 
9.2 
12.2 
15.7 
9.9 

22.0 
22.6 
22.6 
22.6 
22.6 
23.1 
23.8 
19.3 
21.4 
18.4 
16.4 
11.8 
10.7 
14.4 
9.4 
4.6 
4.7 
8.0 
10.7 
13.7 
8.0 

40.8 
40.8 
40.8 
40.8 
40.9 
41.8 
43.0 
3.5.0 
38.7 
33.4 
2S.3 
21.8 
20.6 
26.2 
17.4 
8.7 
9.0 
14.9 
19.6 
26.0 
16.9 

36.7 
36.7 
36.7 
36.7 
36.8 
37.6 
38.7 
31.5 
34.8 
30.0 
25.3 
19.6 
17.7 
23.6 
16.7 
7.8 
8.0 
13.3 

17.  r 

22.4 
14.3 

30.5 
30.5 
30.6 
30.6 
30.5 
31.? 
32.1 
26.2 
28.9 
24.9 
21.0 
10.2 
14.0 
19.6 
13.0 

:; 

11.0 
14.6 
18.6 
11.8 

26.1 
26.1 
26.1 
26.1 
26.1 
26.7 
27.6 
22.4 
24.7 
21.3 
17.9 
13.8 
12.5 
16.7 
11.1 
5.4 
5.6 
9.4 
12.4 
15.9 
10.6 

22.7 
22.7 
22.7 

22.7 

22.8 

23.3 

24.0 

Honolulu 

Guayaquil 

Callao 

19.5 
21.6 
18.5 
15.  fi 

Valparaiso 

12.0 
10.9 

14.fi 

9.fi 

4.7 

4.8 

7.5 
12.3 
17.7 
11.0 

6.7 
11.0 
15.8 

9.9 

5.6 
9.1 
13.1 
8.1 

4.6 
7.7 
11.2 
6.9 

4.0 

6.7 
9.7 
0.0 

8.1 

10.8 

Sydney  

13.8 
8,7 

PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


17 


Table  XIV.— NUMBER  OF  DAYS  SAVED,  FOR  VESSELS  OF  DIFFERENT  SPEEDS,  BY  THE  PANAMA  CANAL  ROUTE 
BETWEEN  EUROPEAN  PORTS  AND  PORTS  OF  PACIFIC  AMERICA  AND  OF  NEW  ZEALAND. 


Liverpool,  for  vessels  of— 


Sitka 25.7 


Port  Townsend 

Portland,  Oreg 

San  Francisco 

San  Diego 

Acapulco 

San  Jose  de  Guatemala. 

Honolulu 

Guayaquil 

Callao 

Iquique 

Valparaiso 

Coronel 

Wellington 


Hamburg,  for  vessels  of — 


s   s 


22.5   18.7 
22.5   18.7 


Antwerp,  for  vessels  of— 


18.7 

15.9 

18.7 

15.9 

18.7 

15.9 

18.7 

15.9 

19.4 

16.6 

20.3 

17.3 

14.3 

12.2 

17.1 

14.6 

13.1 

11. 5 

9.2 

7.8 

4.3 

3.5 

2.8 

2.3 

4.4 

3.7 

Bordeaux,  for  vessels  of— 


Gibraltar,  for  vessels  of- 


20.1  16.7]  14.2 
14.2 
14.2 
14.2 
14.2 
14.8 
15.6 
10.4 
12.8 


12.3 
12.3 
12.3 
12.3 
12.4 
12.9 
13.6 


Southern  Cliina  and  the  Pliihppines — Hongkong  and  Manila — are  near  the  center  of  the  section  whose 
commerce  with  New  York  and  the  other  north  Atlantic  ports  of  the  United  States  may  use  the  Panama  or 
Suez  Canal  with  equal  advantage,  as  far  as  distance  and  time  of  voyage  are  concerned.  Relative  tolls  and 
coal  prices  via  the  alternative  routes,  and  the  traffic  possibilities  at  intermediate  ports,  as  will  be  explained  in 
Chapters  X  and  XI,  rather  than  the  days  to  be  saved  by  taking  one  route  rather  than  the  other  will  determine 
whether  the  Panama  or  the  Suez  Canal  wiU  be  used  by  vessels  bound  to  or  from  that  part  of  the  Orient.  Of 
the  commerce  of  the  western  side  of  the  Pacific  with  Europe,  only  the  trade  of  New  Zealand  can  save  time 
by  using  the  Panama  instead  of  the  Suez  or  some  other  alternative  route.  The  point  on  the  west  coast  of  South 
America  equally  distant  from  a  port  of  Europe  via  the  Panama  Canal  and  the  Straits  of  Magellan  is  some- 
what south  of  40°  south  latitude.  Coronel,  the  most  southerly  port  mentioned  in  Table  XIV,  is  about  37° 
south  of  the  Equator, 


CHAPTER  II. 

TONNAGE  OF  THE   VESSELS  EMPLOYED  IN  THE  COMMERCE 

THAT  MIGHT  HAVE  ADVANTAGEOUSLY  USED  THE 

PANAMA  CANAL  IN   1909-10. 

19 


CHAPTER  II. 

TONNAGE   OF  THE  VESSELS  EMPLOYED  IN  THE  COMMERCE  THAT  MIGHT  HAVE  ADVANTAGEOUSLY 

USED  THE  PANAMA  CANAL  IN  1909-10. 


INTRODTJCTION. 

In  the  report  made  by  the  Isthmian  Canal  Commission  in  1901,  it  was  stated  that  in  the  3-ear  1899, 
4,891,075  net  register  tons  of  sliipping  would  have  used  an  Isthmian  canal  had  it  then  been  open  to  traflic. 
That  sum  was  ascertained  by  an  anah'sis  of  the  entrances  and  clearances,  at  the  ports  of  the  United  States 
and  European  countries,  of  the  vessels  employed  in  the  commerce  that  might  have  advantageously  used  a 
Panama  canal.  A  stud}^  was  also  made  of  the  figures  collected  by  the  New  Panama  Canal  Co.,  which 
had,  for  a  number  of  years,  kept  a  record  of  the  movements  or  voyages  of  all  vessels  whose  routes  were  such 
that  the  vessels  would  naturally  have  passed  tlirough  a  Panama  canal.     (See  Appendix  I.  chapter  XIX.) 

The  records  kept  by  the  French  company  presented  separate  tonnage  totals  for  vessels  (1)  moving  between 
Europe  and  Pacific- America,  (2)  between  Europe  and  the  Orient,  (3)  between  Atlantic  and  Pacific  America, 
and  (4)  between  Atlantic-America  and  the  Orient.  Most  of  the  tonnage  of  the  vessels  movmg  between  Europe 
and  the  Orient  (Group  2)  was  excluded  from  the  total  because  it  belonged  to  the  Suez,  rather  than  to  the 
Panama,  route.  There  were  added  336,998  tons  for  the  commerce  crossuag  the  Isthmus  of  Panama,  because 
the  records  kept  bj'  the  French  company  could  not  have  included  that  traffic.  These  changes  havmg  been 
made  in  the  total  tonnage  of  vessel  movements  as  recorded  by  the  Panama  Canal  Co.,  it  was  found  that 
their  records  indicated  an  available  Panama  traffic  in  1899  of  5,001,798  tons  net  register — a  total  but  slightly 
larger  than  that  ascertained  by  the  stud}'  of  recorded  entrances  and  clearances.     (Appendix  I,  cliapter  XX.) 

To  determine  what  tonnage  of  vessels  would  have  used  a  Panama  canal  in  1910,  had  it  then  been  available, 
an  analysis  has  been  made  of  the  records  of  the  leading  commercial  nations  concernmg  the  entrances  and  clear- 
ances of  vessels.  Tlie  figures  here  presented  are  for  the  latest  available  year,  m  most  instances  for  the  year 
1910.  In  the  case  of  some  foreign  countries,  figures  for  1909  were  the  latest  obtainable.  The  years  covered 
by  the  figures  are  stated  in  the  statistical  tables. 

Tlae  tables  contained  in  this  report  have  been  so  constructed  as  to  show  (1)  total  entrances  and  clearances; 
(2)  the  tonnage  of  vessels  with  cargo  as  distinct  from  those  in  ballast;  and  (3)  the  tonnage  of  sailing  vessels 
separately  from  the  tonnage  of  steamships.  It  is  important  to  know  what  share  of  the  vessels  using  the  Panama 
Canal  will  probably  move  in  ballast,  because  the  tolls  are  ordinarily  made  less  for  empty  than  for  loaded  vessels. 
The  tonnage  of  sailing  vessels  needs  to  be  known  to  ascertain  to  what  extent  traffic  wUl  need  to  sliift  from  sail 
to  steam,  for  sailmg  vessels  will  not  use  the  Panama  Canal. 

The  statistics  of  vessel  entrances  and  clearances  have  certain  limitations  wliich  make  it  impossible  to 
accept  them  without  careful  anah'sis.  Different  countries  follow  dissimilar  rules  in  making  their  records. 
There  are  unavoidable  duplications  m  some  instances;  and  in  other  cases  there  are  serious  understatements 
due  to  the  fact  that  the  records  of  vessel  movements  do  not,  and  can  not,  correspond  to  the  actual  movements 
of  commodities  in  international  commerce.  In  analyzing  entrance  and  clearance  statistics,  the  following  facts 
are  to  be  kept  in  mind: 

1.  The  methods  or  rules  followed  in  recording  entrances  and  clearances  in  the  various  nations  are  not 
uniform.  Tlie  regulations  of  the  United  Kingdom  provide  that  vessels  bringing  cargo  from  more  than  one 
foreign  port  are  to  be  recorded  as  entering  from  the  first  port  at  which  cargo  for  the  United  Kingdom  was 
embarked;  and  that  loaded  vessels  departing  from  the  United  Kingdom  for  more  than  one  foreign  port  are 
listed  as  clearing  for  the  last  port  to  wliich  their  cargo  is  consigned.  Vessels  in  ballast  are  recorded  as  entering 
from  the  last  foreign  port  at  which  they  touched  before  reacliing  the  United  Kingdom,  and  as  clearing  to  the 

21 


22 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


first  foreign  port  to  which  they  are  bound.  Tlie  rules  of  France,  Belgium,  Germany,  and  Austria  are  essentially 
the  same  as  the  British.  The  Italian  regulations,  howev-er,  provide  that  when  vessels  with  cargoes  come  from, 
or  go  to,  more  than  one  foreign  country,  each  country  is  credited  with  the  tonnage. 

The  rules  in  force  in  the  United  States  state  that  "in  tabulating  clearances  to  foreign  ports,  the  tonnage 
is  credited  to  the  country  in  which  is  located  the  first  foreign  port  at  which  the  vessel  will  enter  for  discharge 
of  cargo;  but  if  the  bulk  of  the  cargo  is  to  be  discharged  at  some  other  foreign  port,  the  tonnage  wiU  be  cred- 
ited to  the  country  in  which  that  port  is  located.  In  cases  of  entrances,  the  first  foreign  port  from  which  the 
vessel  sailed  with  cargo  for  the  United  States  is  that  to  which  the  entered  tonnage  will  be  credited."  The 
American  rule  for  entrances  is,  therefore,  like  the  rules  of  Great  Britain,  Germany,  Belgium,  France,  and 
Austria,  but  the  American  rule  for  clearances  is  different. 

2.  The  records  of  vessel  entrances  and  clearances  often  include  duplications.  This  is  especially  the  case 
in  the  trade  between  Europe  and  the  west  coast  of  South  America,  the  Orient,  and  Oceania.  The  cause  of 
these  duplications  wiU  be  explained  in  discussing  what  deductions  from  the  recorded  figures  are  to  be  made 
to  eliminate  the  duphcations. 

3.  The  records  of  the  vessel  movements  between  some  sections,  as  between  the  eastern  coast  of  the  United 
States  and  the  Orient  and  Oceania,  understate  the  tonnage  of  shipping  actually  employed  in  the  commerce; 
and,  for  reasons  that  will  be  stated  later,  it  is  necessary  to  increase  the  recorded  figures. 

4.  For  the  commerce  between  some  sections,  as  between  Europe  and  Pacific-Mexico  and  Central  America, 
the  records  are  incomplete,  in  that  they  do  not  state  the  tonnage  at  Atlantic  and  Pacific  ports  separately. 

It  is  thus  necessary  to  subject  entrance  and  clearance  statistics  to  a  careful  analysis  and  to  ascertain  whether 
they  tally  with  the  known  facts  as  regards  vessel  movements  and  commercial  exchanges;  but,  when  so  tested 
and  corrected,  they  enable  one  to  determine,  with  approximate  accuracy,  the  actual  vessel  tonnage  at  present 
available  for  the  Panama  Canal. 


Vessel  Tonnage  of  European  Trade  With  the  West  Coast  of  South  America,  1909. 

The  tonnage  of  shipping  recorded  by  European  countries  as  having  cleared  to,  and  entered,  from  the  west 
coast  of  South  America,  in  1909,  is  stated  in  Table  I.  There  were  2,007,857  net  tons  of  European  entrances 
and  2,177,600  net  tons  of  European  clearances,  a  total  of  4,185,457. 


Table   I. 


-EUROPEAN    ENTRANCES    AND    CLEARANCES,    NET    REGISTER  TONNAGE   OF   VESSELS   TRADING   BE- 
TWEEN EUROPE  AND  THE  WEST  COAST  OF  SOUTH  AMERICA  (1909). 


Entrances. 

Clearances. 

Total 

entrances 

and 

Countries. 

ChUe. 

Peru. 

Ecuador. 

Bolivia. 

Total 
cargo  and 
baUast. 

Chile. 

Peru. 

Ecuador. 

BoUvia. 

Total 
cargo  and 
ballast. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Car- 
go- 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Car- 
go. 

Bal- 
last. 

ances. 

197,270 
368,445 
219,085 
84,616 

1,153 
1,860 

173,148 
79,323 
6,969 
9,851 

1,512 
359 

15,726 
9,684 

387,656 
457,452 
227,566 
101, 168 

585,681 
113,409 

20,674 
6,552 
1,143 

12,234 

2,188 

261,558 
131, 130 
177,943 

48,596 
3,002 

908,069 

247,541 

200,705 

6,552 

1,143 

1,295,725 

428,271 
107,720 

The  Netherlands 

2  4,841 

P) 

(=■) 

(') 

(?) 

4,181 

4,181 

44 

178,888 

5,502 

193,670 

61,026 

44 
211,907 
21,063 
353,343 
227,233 

191,226 
21,025 
194,589 
215, 962 

no 

4,203 
445 

16,506 

2,518 

210, 250 
21,135 
215,897 
382.552 

11,310 

585 
85,840 

21,709 
14,976 
29, 179 
152,374 

422,157 

Italy' 

42,198 

Spain     , 

153.182 

17, 105 

38, 155 

5,286 
13,833 

1,213 

569.240 

12,963 

609,785 

Total 

1,496.399 

7.771 

438,979 

21,494" 

43,214 

2,007,857 

1,166,489 

112, 157 

788,869 

38,155 

70,717 

1,213 

2,177,600 

4, 185, 457 

1  Year  1910:  cargo  and  ballast  separated  according  to  ratio  obtained  from  remaioing  countries,  except  in  case  of  clearances  to  Peru. 

2  Including  Venezuela  and  Colombia. 
"  Included  under  Peru. 

<  Year  1908. 

*  Cargo  and  baUast  separated  according  to  ratio  obtained  from  remaining  countries,  except  in  case  of  clearances  to  Peru. 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS.  23 

The  figures  in  Table  I  contain  certain  rather  large  duplications  because  of  the  fact  that — 

(1)  Vessels  outbound  from  German  and  British  ports  and  recorded  in  the  German  and  British  clearances 
may  call  at  Belgium,  The  Netherlands,  France,  Spain,  or  Portugal;  and,  under  then-  rules  as  to  clearances,  be 
again  recorded  as  cleared  from  one  or  more  of  those  countries. 

(2)  Vessels  inbound  at  German  and  British  ports  and  recorded  in  the  German  and  British  entrances  may 
have  called  en  route  at  one  or  more  of  the  above-named  countries  and  have  been  recorded  in  their  entrances. 

(3)  The  Spanish  and  Portuguese  entrances  and  clearances  may,  in  addition  to  possible  British  and  German 
dupUcations,  contain  some  tonnage  that  has  been  included  in  French  or  Itahan  records. 

The  recorded  entrances  and  clearances  of  the  United  Ivingdom,  German^-,  Norway,  and  Sweden  may  be 
accepted  without  change,  for  those  countries  are  so  situated  as  to  be  the  European  termini  of  vessel  movements 
between  Europe  and  the  west  coast  of  South  America.  In  the  case  of  Belgium,  however,  there  are  dupUca- 
tions, because  steamers  both  outbound  from  and  mbound  to  German  and  British  ports  call  at  Belgium  with 
cargo.  Under  the  Belgian  as  well  as  the  British  and  German  rules  vessels  with  cargo  are  entered  from  the  first 
port  and  cleared  to  the  last  port  at  which  they  loaded  or  discharged  cargo  during  their  voyage.  Belgian 
entrances  from  the  west  coast  of  South  America  are  one-half  of  those  of  Germany  and  within  160,000  tons  of 
those  of  the  United  Kingdom;  although  the  imports  of  Belgium  from  Pacific  South  America  are  small,  as 
compared  \vith  those  of  Germany  or  Great  Britain.  The  Belgian  entrances  of  saihng  vessels  amount  to  109,723 
tons,  and  may  be  accepted  without  change,  because  they  are  for  chartered  vessels  which  usually  bruig  in  and 
discharge  full  cargoes.  The  entrances  ha  ballast — 1,512  tons — may  also  be  accepted;  because,  under  the 
entrance  rules  of  Belgium,  Great  Britam,  and  Germany,  vessels  in  ballast  are  entered  from  the  last  point  at 
which  they  touch.  Owing  to  the  smalhiess  of  Belgian  imports,  as  compared  ■ndth  those  into  Germany  and 
Great  Britain,  and  the  comparative  magnitude  of  Belgian  vessel  entrances,  it  was  thought  that  not  more  than 
three-fourths  of  the  remaming  steam  entrances  should  be  included  in  the  revised  figure  of  entrances.  This 
makes  the  net  Belgian  entrances  198,483  net  tons. 

Belgian  clearances  of  sailing  vessels  contain  no  duphcations,  Init  amount  to  only  21,055  tons.  The  clear- 
ances of  vessels  in  ballast  (2,188  tons)  may  also  be  accepted  ^nthout  change.  The  exports  from  Belgium  to 
the  west  coast  of  South  America  are  considerabty  less  than  those  from  Germany;  yet  the  recorded  clearances 
from  the  two  countries  are  not  ver}-  far  apart.  It  should  also  be  noted  that  British  exports  to  the  west  coast 
of  South  America  do  not  require  so  much  vessel  tonnage  as  clears  from  British  ports,  and  sliips  from  Great 
Britain  are  known  to  call  at  Belgium  en  route.  It  is  probable  that  the  duphcations  are  greater  m  the  recorded 
clearances  of  Belgium  than  in  the  entrances.  In  Belgium,  Holland,  France,  Spain,  and  Portugal  many  sliips 
cleared  ft-om  Great  Britain  take  on  cargo,  and  a  smaUer  number  of  German  vessels  call  at  Belgium  to  complete 
their  cargo  for  the  west  coast  of  South  America.  It  is  thought  that  the  steamship  clearances  from  Belgium 
should  be  reduced  one-half,  or  to  136,311  tons.  This  credits  Belgium  with  a  total  vessel  tonnage  to  and  from 
Western  South  America  of  334,784  net  tons. 

A  portion  of  the  tonnage  recorded  by  the  Netherlands  as  to  and  from  the  west  coast  of  South  America  is 
also  included  in  the  tonnage  recorded  as  entering  and  clearbig  at  ports  of  the  United  Kingdom  and  Germany. 
The  situation  as  to  the  Netherlands  entrances  is  similar  to  that  of  the  Belgian,  and  the  same  method  of  avoiding 
duphcations  may  be  adopted.  The  recorded  entrances  of  sailmg  vessels  (31,007  tons)  and  those  of  vessels  m 
ballast  (1,860)  may  be  accepted  ^\-ithout  change,  and  tliis  sum  added  to  three-fourths  of  the  remainmg  steam 
tonnage  makes  the  total  entrances  84,093  tons.  The  recorded  clearances  of  the  Netherlands  are  so  small  that 
they  may  be  accepted  mthout  change.  The  total  vessel  movement  between  the  Netherlands  and  western 
South  America  aggregates  90,645  tons  of  entrances  and  clearances. 

The  recorded  vessel  entrances  into  France  from  the  west  coast  of  South  America  are  almost  as  large  as 
those  of  Great  Britam,  although  the  value  of  French  imports  from  that  section  is  much  less  than  the  value  of 
the  imports  either  of  Germany  or  of  Great  Britam.  The  discrepanc}-  must  be  due  to  duphcation  m  the  vessel 
entrances.  Vessels  bound  for  the  United  Kingdom  or  Germany  sometimes  caU  at  French  ports  to  discharge  a 
portion  of  their  cargo  and  in  that  way  are  recorded  both  m  France  and  in  the  British  or  German  ports  where 
their  voyages  end.  As  in  the  case  of  Belgium  and  the  Netherlands,  France's  recorded  entrances  of  saihng 
vessels  (109,370  tons)  contam  few  duphcations;  and  the  figures  for  vessels  m  baUast  (445  tons)  contain  none. 
Probably  one-half  of  the  steamsliip  entrances,  as  recorded  by  France,  should  be  deducted  to  allow  for  the  duph- 
cation of  tonnage  in  the  German  and  British  figures.  Thus  corrected,  the  total  French  entrances  from  western 
South  America  become  246,183  net  tons. 


24  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  value  of  the  French  and  German  exports  to  the  west  coast  of  South  America  do  not  differ  greatly  m 
value,  and  their  vessel  clearances  to  the  two  countries  are  sunilar  in  amount.  The  exports  from  the  United 
Kingdom  to  western  South  America  are  of  large  value;  but  the  British  clearances  are  disproportionately  large 
in  comparison  with  the  exports.  Ships  from  Great  Britain  call  at  French  ports,  partly  loaded,  and  are  thus 
recorded  in  France  as  well  as  in  Great  Britain.  This  is  true  to  a  less  extent  of  vessels  clearing  from  German 
ports.  Probably  one-half  of  the  recorded  French  clearanoes  to  the  west  coast  of  South  America  should  be 
deducted,  leaving  a  total  of  113,616  tons.  This  makes  the  aggregate  net  vessel  movement,  inbound  and 
outbound,  between  France  and  western  South  America  359,799  tons.  There  are  no  clearances  of  sailing  vessels 
or  steamers  in  ballast  from  France  to  the  west  coast  of  South  America. 

The  duphcations  in  the  Spanish  tonnage  figures  are  very  pronounced.  The  value  of  the  combined  import 
and  export  trade  of  Spain  with  the  west  coast  of  South  America  is  less  than  $3,000,000;  yet  the  vessel  entrances 
in  this  trade,  as  recorded  by  Spain,  are  over  one-half  those  of  Germany  or  Great  Britain,  and  the  clearances 
exceed  those  of  Germany.  The  greater  portion  of  this  recorded  tonnage  is  also  included  in  the  British,  German, 
and  French  figures.  The  entrances  of  sailing  vessels,  vessels  in  ballast,  and  of  steamers  flying  the  Spanish  flag 
may  be  accepted  without  deduction.  Probably  one-fourth  of  the  remaining  recorded  entrances  may  properly 
be  retained.  This  reduces  the  net  entrances  to  93,104  tons.  The  Spanish  clearances  of  saihng  vessels,  of  vessels 
in  ballast,  and  of  steamers  flying  the  Spanish  flag  aggregate  125,208  tons.  Tliis  analysis  credits  the  commerce 
of  Spain  mth  western  South  America  with  218,320  net  tons  of  vessel  entrances  and  clearances,  of  which  145,303 
tons  consist  of  vessels  moving  in  ballast. 

The  trade  of  Portugal  with  the  west  coast  of  South  America  is  so  small  that  most  of  the  abnormally  large 
vessel  tonnage  recorded  consists  of  duplications.  As  in  the  case  of  Spain,  however,  the  total  tonnage  of  sailing 
vessels  and  of  vessels  ui  ballast  may  be  regarded  as  free  from  duplications,  and  doubtless  about  one-fourth  of 
the  remaining  entrances  may  conservatively  be  retained.  By  this  reasoning  Portugal  is  credited  with  entrances 
of  61,600  tons  and  clearances  of  34,966,  an  aggregate  of  96,566.  Vessels  of  Portuguese  nationality  engaged 
in  the  trade  with  western  South  America  are  so  few  in  number  that  they  are  not  separately  specified  in  the 
official  reports. 

The  trade  of  Italy  with  the  west  coast  of  South  America  is  sufficiently  heavy  to  account  for  the  small  vessel 
tonnage  recorded  by  Italy.  The  same  is  true  of  Himgarian  tonnage.  In  both  cases  the  figures  may  be 
accepted  without  change. 

The  total  net  entrances  into  Europe  of  vessels  engaged  in  the  trade  with  the  west  coast  of  South  America 
are  reduced  by  this  analysis  to  1,553,887  tons  and  the  clearances  to  1,594,513,  a  combined  total  of  3,148,400. 
This  reduction  from  the  total  toimage  as  recorded  is  relatively  greater  than  was  made  in  the  report  of  1899-1901 ; 
but  it  is  beheved  that  the  duplications  have  become  more  numerous  because  of  the  increased  use  of  steamers 
instead  of  sailing  vessels  and  because  of  the  growth  of  line  as  compared  with  chartered  traffic. 

Though  the  entrances  here  given  are  sUghtly  less  than  the  clearances,  it  is  to  be  noted  (1)  that  150,312 
tons  of  the  clearances  consist  of  vessels  in  ballast  and  that  a  considerable  portion  of  the  remaining  tonnage 
clears  hghtly  laden;  (2)  that  the  recorded  tonnage  statistics  show  a  similar  relation  between  entrances  and 
clearances;  and  (3)  that  the  clearances  from  Great  Britain  are  unusually  large  and  consist  partly  of  vessels 
which  clear  from  British  ports  for  South  America  later  to  return  with  cargo  destined  to  continental  European 
ports.  Such  vessels  appear  in  the  clearance  returns  of  Great  Britain  and  in  the  entrance  records  of  other 
European  countries.  Some  ships  after  discharging  on  the  west  coast  of  South  America  proceed  to  the  Pacific 
coast  of  the  United  States  or  of  British  Columbia.  Such  vessels  are  recorded  b^^  Great  Britain  as  having  cleared 
for  western  South  America  and  as  having  entered  from  the  United  States  or  British  Columbia. 

The  tonnage  of  the  sailing  vessels  in  the  trade  between  Europe  and  the  west  coast  of  South  America  in 
1909  was  1,054,917  tons,  or  25  per  cent  of  the  total  recorded  tonnage  and  38  per  cent  of  the  tonnage  after  the 
deductions  to  eliminate  duplications.  The  percentages  for  1898-99  are  not  known,  but  must  have  been  much 
larger. 

The  net  tonnage  of  the  vessels  that  entered  and  cleared  the  ports  of  Europe  in  1909-10  in  the  trade  with 
the  west  coast  of  South  America  was  3,148,400.  The  details  as  regards  loaded  vessels,  vessels  in  ballast,  sail 
and  steam  vessels,  are  presented  below  in  Table  XI. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 
Vessel  Tonnage  of  Eueopean  Trade  with  Western  Central  America  and  Mexico,  1909. 


25 


The  statistics  of  the  vessel  movements  between  Europe  and  the  western  ports  of  Mexico  and  Central 
America  via  the  Horn  and  the  Straits  of  Magellan  are  incomplete.  The  German  figures  alone  distinguish 
between  the  eastern  and  western  ports  of  Mexico  and  Central  America,  although  Mexico  and  all  the  Central 
American  coimtries,  except  San  Salvador,  have  ports  on  both  seaboards.  Only  France  and  Spain  have  separate 
entries  for  San  Salvador.  The  total  recorded  European  entrances  and  clearances  for  the  trade  with  western 
Mexico  and  Central  America,  as  stated  in  Table  II,  amounted  to  only  99,751  net  tons. 


Table   II.- 


-NET    REGISTER    TONNAGE   OF  VESSELS   OPERATED   BETWEEN   EUROPE    AND   WESTERN   CENTRAL 
AMERICA  AND  PACIFIC  MEXICO  (1909). 


Central  America. 

Pacific  Mexico. 

Total. 

Countries. 

Vessels  in  ballast. 

Vessels  with  cargo. 

Total  vessels. 

Vessels  in  ballast. 

Vessels  with  cargo. 

Total  vessels. 

En- 
trances. 

Clear- 
ances. 

En- 
trances. 

Clear- 
ances. 

En- 
trances. 

Clear- 
ances. 

En- 
trances. 1 

Clear- 

En- 
trances. 

Clear- 
ances. 

En- 
trances. 

Clear- 
ances. 

En- 
trances. 

Clear- 
ances. 

18,754 
12,667 

18,754 
12,667 

8.973 

57,533 

8,973 

57,533 

27,727 
12,667 

57,533 



1,824 

1,824 

1,824 

Total 

31,421 

1,824 

31,421  1 

1,824 

8,973 

57,533 

8,973 

57,533 

40,394 

59,357 

1                1 

Most  European  countries  trade  with  the  west  coast  of  Mexicio  and  Central  America,  but  the  tonnage  of 
shipping  employed  is  not  known.  The  importance  of  Great  Brit  am  in  the  commerce  with  tliis  part  of  America 
is  such  that  the  above  figures  for  Germany  and  the  partial  figures  for  France  and  Spain  ought  to  be  doubled 
to  secure  a  total  equal  to  the  probable  actual  European  entrances  and  clearances  of  vessels  emploj^ed  in  the 
commerce  with  the  west  coast  of  Central  America  and  Mexico.  By  doing  tliis,  the  total  entrances  become 
80,788  tons  and  the  clearances  118,714,  the  combined  total  being  199,502  tons. 

A  portion  of  the  trade  of  Europe  with  the  western  ports  of  Mexico  and  Central  America  is  handled  via  the 
Istlmaus  of  Panama,  and  is  discussed  later.  The  tonnage  included  in  Table  II  is  that  which  moves  by  all- 
water  routes  around  South  America.     In  Table  XI  is  a  classified  summan,'  of  this  vessel  tonnage. 

Trade  of  Europe  with  the  West  Coast  of  the  United  States,  British  Columbia,  and  Hawaii,  1910. 

The  recorded  statistics  of  the  tonnage  of  vessels  moving  between  Europe  and  the  west  coast  of  the  United 
States  contain  few  dupUcations,  because  the  figures  are  taken  almost  entirely  from  the  American  navigation 
reports  and  not  from  the  separate  records  of  the  various  European  countries.  The  figures  for  Hawaii  are  taken 
from  the  same  source,  and  contain  no  duphcations.  The  tonnage  credited  to  British  Columbia,  M-ith  the  excep- 
tion of  the  tonnage  of  vessels  from  and  to  Great  Britain,  is  taken  from  the  Canadian  records,  and  there  may  be 
some  duphcations,  because  vessels  en  route  between  Europe  and  British  Columbia  may  call  at  Pacific  ports 
of  the  United  States.  It  is  beheved,  however,  that  118,407  tons  of  vessel  movements  were  required  for  the 
trade  between  British  Columbia  and  Europe,  and  that  the  amount  of  duphcations  must  be  smaU.  The  tonnage 
of  vessels  that  entered  Great  Britain  from  British  Columbia  and  that  clearetl  thence  from  Great  Britain  was 
obtained  from  the  British  Navigation  Report  for  1909,  and  there  could  be  no  duphcations  in  the  figures. 

The  total  entrances  into  Europe  from  the  Pacific  ports  of  the  United  States,  Hawaii,  and  British  Columbia 
in  1910  were  419,865  tons,  and  the  clearances  269,853,  the  combined  total  being  689,718.  The  detailed  sta- 
tistics are  shown  in  Tables  III  and  XI. 


26 


PANAIVIA  CANAL  TEAFFIC  AND  TOLLS. 


Table  HI.— NET  REGISTER  TONNAGE,  ENTRANCES  AND  CLEARANCES,  VESSEL  MOVEMENTS  BETWEEN  EUROPE 
AND  WESTERN  COAST  OF  UNITED  STATES,  BRITISH  COLUMBIA,  AND  HAWAII  (1910). 


Countries. 

Vessels  i 

a  ballast. 

Vessels  with  cargo. 

Total. 

Entered.! 

Cleared.2 

Entered.! 

Cleared." 

Entered.! 

Cleared.' 

12,213 
586 

331,319 
88,546 

208,453 
29,275 
19,326 

331,319 
88,546 

220,666 

19,326 

12,799 

419,865 

257,054 

419,865 

269,853 

!  Entered  Europe  from  Pacific  United  States,  British  Columbia,  and  Hawaii. 

3  Cleared  from  Europe  to  Pacific  United  States,  British  Columbia,  and  Hawaii. 

'  Data  of  United  Kingdom  for  year  1909;  total  divided  between  cargo  and  ballast,  according  to  figures  of  the  United  Kingdom. 

It  should  be  noted  that  "Clearances"  ha  the  above  table  comprise  clearances  from  Europe  to  the  Pacific 
United  States,  Hawau,  and  British  Columbia.  Vessel  movements  are  heaviest  toward  Europe,  for  it  is  in 
this  direction  that  grain,  lumber,  and  flour,  requiring  heavy  vessel  tonnage,  are  carried. 

Vessel  Tonnage  of  European  Trade  with  the  Orient  East  of  Singapore  and  with  Oceania,  1909. 

In  the  foregoing  analysis  of  the  entrances  and  clearances  of  the  vessels  emploj'ed  in  the  trade  between  Europe 
and  the  west  coast  of  South  America,  Central  America,  Mexico,  and  the  United  States  and  of  the  trade  of  Europe 
\vith  British  Columbia  and  Hawaii,  the  sole  problem  has  been  to  ascertain  from  the  records  of  entrances  and 
clearances  the  correct  tonnage  of  vessel  movements.  The  saviiig  in  distance  effected  by  the  Panama  Canal 
wUl  be  sufficient  to  cause  all  this  trade,  with  the  possible  exception  of  a  part  of  that  to  and  from  central  and 
southern  Cliile,  to  use  the  canal.  For  the  trade  of  Europe  with  the  Orient  and  Oceania  the  Panama  Canal 
will  compete  with  the  Suez  Canal  and  the  Cape  of  Good  Hope  route.  In  the  following  table.  No.  IV,  the  net 
register  tonnage  of  all  the  vessels  that  entered  and  cleared  European  ports  ui  1909  in  the  trade  between  Europe 
and  oriental  countries  east  of  Singapore  is  included;  but,  for  reasons  that  are  iuWy  stated  below,  only  a  small 
share  of  this  tonnage  is  to  be  included  m  the  available  Panama  traffic. 

T.^.BLE  IV.— NET  REGISTER  TONNAGE,  EUROPEAN  ENTRANCES  AND  CLEARANCES  OF  VESSELS  TRADING  BETWEEN 
EUROPE  AND  ORIENTAL  COUNTRIES  EAST  OF  SINGAPORE  AND  COUNTRIES  OF  OCEANIA  (1909). 


Entrances. 

Countries. 

China.! 

Japan. 

Australia. 

New  Zealand 

Philippine 
Islands. 

Korea. 

Other  Paclflc 
countries. 

Total 

Cargo. 

Bal- 
last. 

Cargo. 

BaUast. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

BaUast. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

and 

ballast. 

62,313 
10,046 
70,002 
95,221 

3,999 

567,618 
239,034 
616,670 
89,507 
2,462 

134,934 

1,104,237 
301, 514 

71,271 

387,099 

2  65,024 
8,104 
3,361 

3,547 

8  2,224 
'49,508 

2,402,266 

584,473 
100,737 

1,274,506 

285,465 

6,702 

47, 139 
47,164 
67,587 

2,000 
143,488 

2,908 
36,835 
119,417 
50,595 

52,072 
457,552 

Italy' 

209,642 

16,498 

2,853 

73,567 

523,843 

445,021 

8  757 

1,093,783 

Finland 

Total. 

462,6.37 

3,999 

2,201,024 

134,934 

2,749,864 

71,271 

286,244 

16,498 

6,400 

52,489 

6,372,459 

1  Including  Hongkong  and  foreign  spheres  of  infl 

2  Including  Guam. 

>  Other  British  Pacific  possessions. 

*  Other  British  and  French  Pacific  possessions. 


6  Year  1910.    All  vessels  classed  as  vessels  with  cargo,  except  clearances  to  Japan  and  Australia. 

8  Port  of  Fiume. 

'  All  vessels  classed  as  vessels  with  cargo,  except  clearances  to  Australia. 

8  Other  Oceanic  Islands. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


27 


Table  IV.— NET  REGISTER  TONNAGE,  EUROPEAN  ENTRANCES  AND  CEEARANCES  OF  VESSELS  TRADING  BETWEEN 
EUROPE  AND  ORIENTAL  COUNTRIES  EAST  OF  SINGAPORE  AND  COUNTRIES  OF  OCEANIA  (1909)— Continued. 


Clearances. 

Countries. 

China.' 

Japan. 

Australia. 

New           Philippine 
Zealand.     |      Islands. 

Korea. 

Other  Pacific 
countries. 

Total 

cargo 

and 

ballast. 

Total 

entrances 
and  clear- 
ances. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Ballast. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

Cargo. 

Bal- 
last. 

63,425 
53,574 
70,615 
74,858 

652,305  136,277 

196,567 

678,760   96.965 

953,771 
196,388 
202,181 
65,108 
65,486 
60,341 

119,266 
12,209 
20,422 

409,330 
168 

5,768 

•17,914 

42,522 

»3,948 
'39,536 

2,404,526 
498,442 
1,068,943 
161,206 
127,345 
62,521 
56,576 
47,869 
393,187 
170,890 
462,957 
2,180 

4,806,792 

1,112,648 

2,343,449 

21,240 
50,367 

' 

1 

446,671 

11,492 

134,047 

2,180 
1,999 

62,521 

47,826 
47,869 

3,843 

2,908 

103,715 

99,941 

137,551 
1,134 
24,153 
2,180 

200,643 

20,267 

34,726 
165,543 

850,739 

4,213 
138,852 

309,658 

292,951 

7,001 

1,556,740 

2,180 

Total 

431,669 

190,657 

221,091 

42,522 

43,484 

5,456,642 

11,829,101 

' 

>  Including  Hongkong  and  foreign  spheres  of  influence. 

-  Including  Guam. 

3  Other  British  Pacific  possessions. 

<  Other  British  and  French  Pacific  possessions. 


^  Year  1910.    All  vessels  classed  as  vessels  with  cargo,  except  clearances  to  Japan  and  Australia. 

fi  Port  of  Fiume. 

'  AU  vessels  classed  as  vessels  with  cargo,  except  clearances  to  Australia. 


The  distance  tables  in  Chapter  I  show  that  the  route  from  Europe  to  China,  Hongkong,  Korea,  and  the 
Philippines  via  the  Suez  Canal  is  so  much  shorter  than  that  via  the  Panama  Canal  that  the  Suez  route  will 
retain  most  of  the  traffic  between  Europe  and  Pacific  Asia,  although  the  toUs  and  the  fuel  costs  may  be  lower 
via  Panama. 

New  Zealand  and  that  part  of  Oceania  east  of  Australia  are  nearer  northern  Europe  by  way  of  Panama. 
Wellington  will  be  1,564  miles  nearer  Liverpool  by  the  Panama  Canal  than  via  the  Suez  route,  and  500  imles 
less  distant  via  Panama  than  bj'  way  of  the  Straits  of  Magellan.  The  distances  to  Liverpool  from  the  leading 
groups  of  South  Pacific  islands  wiU  be  from  500  to  5,500  rmles  less  via  the  American  Canal  than  by  way  of  Suez. 

The  European  entrances  from  New  Zealand  and  the  Pacific  islands  in  1909  aggregated  439,588  tons  and  the 
clearances  458,750.  A  portion  of  this  tonnage  ^vill  doubtless  continue  to  move  via  the  Straits  of  Magellan, 
because  the  distance  saved  is  sufficient  to  warrant  the  payment  of  only  a  light  toll.  Line  steamers  and  vessels 
carrying  perishable  products  may  be  expected  to  use  the  canal.  There  are  some  small  duplications  in  the  New 
Zealand  tonnage,  because  vessels  to  and  from  New  Zealand  make  calls  at  Austrahan  ports,  but  there  is  but 
little  tonnage  recorded  twice,  because  the  larger  share  of  the  trade  is  handled  by  chartered  vessels.  It  is 
thought  to  be  a  conservative  assumption  that  about  50  per  cent  of  the  vessel  tonnage  between  Europe  and  New 
Zealand  may  advantageously  use  the  Panama  Canal.  This  credits  the  European  trade  with  New  Zealand  ^vith 
vessel  entrances  of  219,794  tons,  and  clearances  of  229,375  ,an  aggregate  of  449,169  tons. 

The  distances  from  Sydney,  AustraUa,  and  from  Yokohama,  Japan,  to  Europe  via  the  Suez  route  are  shorter 
than  via  the  Panama  Canal,  but  the  differences  are  not  great.  Some  vessels  outbound  from  Sydney  and  Yoko- 
hama wiU  doubtless  take  the  Panama  route.  The  reasoning  of  the  report  of  1899-1901  on  tliis  matter  is,  for  the 
most  part,  as  vahd  now  as  it  was  then.     It  was  then  stated  that ' — 

The  distance  from  Liverpool  to  Sydney,  Australia,  by  way  of  the  Panama  Canal  and  Tahiti  will  be  150  miles  greater  than  via  the 
Suez,  Colombo,  Adelaide,  and  Melbourne,  but  this  disadvantage  of  the  westerly  course  will  be  partially,  if  not  quite,  offset  by  two  facts 
favoring  tlie  American  canal  route.  From  Liverpool  the  distance  via  the  Cape  of  Good  Hope,  Adelaide,  and  Melbourne  and  Sydney  is 
582  miles  greater  than  by  way  of  the  Panama  Canal  and  Tahiti.  The  use  of  the  westerly  route  wUl  enable  vessels  engaged  in  the  European- 
Australian  trade  to  avoid  the  excessive  heat  of  the  Gulf  of  Aden  and  the  Red  Sea  and  the  storms  of  the  tempestuous  Indian  Ocean.  The 
American  route  also  will  be  favored  by  the  fact  that  a  vessel  on  its  way  between  Liverpool  and  the  Isthmian  Canal  will  ha^•e  to  go  but 
500  miles  out  of  its  course  to  call  at  New  York,  next  to  the  greatest  port  of  the  world,  whence  outbound  cargoes  are  practically  always 


1  The  figures  for  difference  in  distance  have  been  revised  to  correspond  with  the  tables  contained  in  the  final  report. 
34998°— 12 3 


28  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

obtainable.  With  the  advantages  oi  cheaper  coal,  a  cooler  passage  in  the  Tropics,  quieter  seas,  and  the  attractive  force  of  America's 
heavy  tonnage,  the  American  Isthmian  route  will  be  used,  instead  of  the  course  through  the  Suez  Canal,  by  some  of  the  vessels  departing 
from  Europe  for  Australia  or  other  regions  on  that  side  of  the  Pacific  Ocean. 

Vessels  proceeding  from  Europe  by  way  of  American  ports  and  the  Isthmian  Canal  to  Oceania  and  the  East  will  have  the  choice  of 
returning  to  Europe  by  way  of  the  Suez  or  by  way  of  the  American  route.  By  whatever  route  the  European  vessels  reach  the  oriental 
and  other  countries  of  the  western  Pacific,  the  route  by  which  they  return  to  Europe  will  be  determined  by  the  relative  opportunities  for 
obtaining  cargo  by  way  of  the  Suez  and  American  routes,  respectively. 

The  reasons  for  believing  that  a  portion  of  Europe's  imports,  from  the  western  half  of  the  Pacific,  will  come  by  way  of  the  American 
route  are  stronger  than  the  reasons  just  cited  regarding  the  use  of  the  American  Canal  for  the  European  export  trade.  A  vessel  fLuding 
itself  in  the  East  Indies,  Japan,  China,  or  Australia  may  either  take  on  cargo  for  Europe  and  for  intermediate  points  along  the  Suez  route 
or  it  may  load  with  such  cargo  as  may  be  available  for  Europe  and  American  countries  and  proceed— in  most  cases  but  partially  loaded — 
across  the  Pacific  to  the  western  coast  of  the  United  States,  where  a  great  abundance  of  cargoes  destined  for  Europe  may  be  obtained, 
or  the  ship  may  go  to  Central  America  and  West  Indian  ports,  where  a  fair  amount  of  freight  for  Europe  will  usually  be  available,  or  the 
vessel  may  proceed  to  Chile  or  some  other  west  South  American  country,  where  there  is  always  a  heavy  amount  of  out-bound  traffic. 
Besides  being  certain  of  securing  freight  from  South  America  or  North  America  for  Europe  a  vessel  returning  from  the  Orient  by  the 
American  canal  will  also  have  the  advantage  above  referred  to  of  being  able  to  secure  coal  more  cheaply  than  it  can  be  obtained  along 
the  Suez  line. 

It  would  seem  probable,  upon  a  priori  grounds,  that  vessels  leaving  Europe,  whether  by  way  of  the  Suez  or  by  way  of  the  American 
canal,  will  frequently  find  the  return  trip  via  America  more  profitable  than  by  the  route  in  the  opposite  direction.  This  general  propo- 
sition, moreover,  seems  to  accord  with  the  evidence  regarding  the  present  round-the-world  movement  of  vessels.  The  entrance  and 
clearance  statistics  of  the  vessels  engaged  in  the  foreign  trade  of  the  west  coast  of  North  and  South  America  indicate  that  a  large  number 
of  vessels  now  going  out  from  Europe  toward  the  East  return  from  the  West. 

At  the  present  time  some  vessels  cross  the  Pacific  to  secure  cargo  on  the  west  coast  of  the  Americas  for 
transportation  to  Europe  via  the  Straits  of  ]\Iagellan  or  Cape  Horn.  The  tendency  for  vessels  outbound  from 
Austraha  or  Japan  to  seek  cargo  in  North  or  South  America  will  be  stronger  after  the  Panama  Canal  is  opened. 
If  it  be  assumed  that  but  10  per  cent  of  the  tonnage  of  the  Austrahan  trade  and  only  5  per  cent  of  the  tonnage  of 
the  commerce  of  Japan  with  Europe  will  move  through  the  American  canal,  the  European  entrances  of  vessels 
coming  from  Austraha  via  Panama  would  be  282,113  tons  and  the  clearances  222,752;  the  European  entrances 
of  ships  coming  from  Japan  via  Panama  would  be  116,797  tons  and  the  clearances  103,754.  The  combined 
European  tonnage  moving  through  the  canal  in  the  trade  with  Australia  and  Japan  would  be  725,416  tons. 

The  above  analysis  credits  to  the  Panama  Canal,  of  European  entrances  in  the  trade  with  New  Zealand, 
the  Pacific  islands  to  the  north,  Austraha  and  Japan,  618,704  tons,  and  of  the  clearances  555,881,  an  aggregate 
of  1,174,585  tons,  distributed  between  vessels  with  cargo  and  those  in  ballast  as  sho-WTi  in  Table  XL  It  is  pos- 
sible that  this  tonnage  is  entirely  too  small,  because  it  includes  none  of  the  trade  of  Europe  with  China,  Hong- 
kong, Korea,  the  PMUppines,  and  tlie  East  Indies,  and  but  a  small  proportion  of  the  trade  with  Austraha  and 
Japan.  On  the  other  hand,  it  allows  fully  for  the  distance  advantage  which  the  Suez  Canal  has  over  the  Panama 
route.  The  causes  affecting  the  choice  of  routes  taken  by  vessels  saihng  for  Europe  and  for  the  eastern  seaboard 
of  the  United  States  from  Australasia  and  Asiatic  ports  north  and  east  of  Singapore  are  considered  at  length 
in  discussing  the  relation  of  tolls  to  the  volume  of  traffic  that  may  advantageously  use  the  Panama  Canal — 
Chapter  XL 

Vessel  Tonnage  of  the  Trade   of   the   Atlantic-Gulf  Seaboard  of  the  United  States  with  the 
West  Coast  of  South  America,  Pacific  Mexico,  and  Hawaii,   1910. 

The  traffic  between  the  Atlantic-Gulf  seaboard  of  the  United  States  and  tlie  west  coast  of  North  and  South 
America,  including  Hawaii,  will  practically  all  take  the  Panama  route.  The  onh*  possible  exception  will  be  a 
slight  tonnage  to  and  from  the  southern  part  of  Cliile.  At  present  the  commerce  between  the  United  States 
and  western  South  America  is  relatively  small;  but  it  should  be  much  larger  after  the  canal  has  had  time  to 
exercise  its  influence. 

The  vessel  entrances  into  the  Atlantic-Gulf  ports  of  the  United  States  from  the  west  coast  of  South 
America  in  1910  amounted  to  300,909  tons,  and  the  clearances  to  166,686,  a  total  of  467,595  tons.  This  does 
not  include  the  present  traffic  across  the  Istlimus  of  Panama,  which  is  considered  on  a  later  page. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


29 


Table  v.— NET  REGISTER  TONNAGE,  ENTRANCES  AND  CLEARANCES,  VESSEL  MOVEMENTS  BETWEEN  THE 
UNITED  STATES  ATLANTIC-GULF  COAST  AND  PACIFIC  -SOUTH  AMERICA,  PACIFIC  MEXICO,  AND  HAWAII 
(1910). 


Countries. 

Entrances. 

Clearances. 

Total  en- 

With  cargo. 

In  ballast. 

With  cargo. 

In  ballast. 

clearances. 

Chile 

272,601 
18,004 

99,015 
2,595 
14,482 
20,544 
29,666 

384 

372,000 
20,599 
14,482 

Peru 

Ecuador 

Pacific  Mexico 

Hawaii' 

10,304 

39,970 

Total 

300,909 

166,302 

384 

467,595 

'  Fiscal  year  1911;  all  clearances  classed  as  vessels  with  cargo;  entrances  from  original  abstracts. 

The  figures  in  Table  V  may  somewhat  understate  the  actual  tonnage;  because,  under  the  rules  of  the 
United  States  as  to  recording  clearances,  vessels  are  cleared  to  the  first  foreign  port  at  which  they  discharge 
cargo,  unless  the  bulk  of  the  cargo  is  destined  to  some  other  foreign  port.  This  partly  accounts  for  the  great 
difference  between  the  entrances  and  clearances  in  trade  between  the  eastern  seaboard  of  the  United  States 
and  Pacific- American  countries.  The  actual  vessel  entrances  into  our  eastern  ports  from  Pacific  America, 
however,  are  much  in  excess  of  the  clearances;  because  our  imports  from  the  west  coast  of  the  Americas  are 
greater,  both  in  value  and  bulk,  than  our  exports  to  that  part  of  the  world.  Some  addition  might  possibly  be 
made  to  the  recorded  clearances,  as  stated  in  Table  V,  but  it  has  been  thought  best  to  accept  the  figures 
without  change. 

Entrances  and  Clearances  in  the  Trade  of  the  Atlantic-Gulf  Seaboard  of  the  United  States  with 
Oceania  and  the  Orient  East  of  Singapore. 

It  is  especially  difficult,  for  the  following  reasons,  to  obtain  accurate  statistics  of  the  vessel  movements 
made  in  carrying  on  the  trade  between  our  Atlantic-GuK  Seaboard  and  the  Orient  and  Pacific  Oceania: 

(1)  A  portion  of  the  commerce  is  handled  indirectly  by  way  of  Europe,  and  the  cargoes  there  transshipped 
are  credited  to  our  commerce  with  Europe  instead  of  to  our  trade  with  the  Orient  and  Oceania. 

(2)  Some  vessels  engaged  in  our  trade  with  points  east  of  Singapore  load  and  discharge  freight  en  route  at 
points  in  southern  Asia.  Our  records  of  entrances  and  clearances  may  thus  credit  to  countries  west  of  Singapore 
tonnage  that  should  be  credited  to  countries  beyond  Singapore. 

(3)  The  recorded  entrance  and  clearance  statistics  of  the  vessel  movements  between  the  eastern  seaboard 
of  the  United  States  and  Oceania  and  the  Orient  east  of  Singapore  are  so  small  in  comparison  with  the  known 
volume  of  tliis  trade  that  the  figures  for  vessel  movements  can  not  be  accepted  at  their  face  value.  The  tonnage 
of  slnpping  recorded  as  having  entered  and  cleared  at  American  ports  could  not  possibly  have  transported  the 
traffic  that  was  exchanged. 

Table  VI.— NET  REGISTER  TONNAGE,  ENTRANCES  AND  CLEARANCES,  VESSEL  MOVEMENTS  BETWEEN  THE 
UNITED  STATES  ATLANTIC-GULF  COAST  AND  ORIENTAL  COUNTRIES  EAST  OF  SINGAPORE  AND  COUNTRIES 
OF  OCEANIA. 


Countries. 

Entrances. 

Clearances. 

Total  en- 
trances and 
clearances. 

Cargo. 

BaUast. 

Cargo. 

Ballast. 

China 

43,651 
26,885 
108,633 

5,677 
69,756 

4.308 

123,708 
62,817 
93,008 
192,580 
130,272 

Hongkong 

89, 702 
215.550 
198,257 
200,028 

Japan 

3,609 

10,300 

Australia  and  Tasmania 

PhiUppine  Islands 

French  Oceania 

German  Oceania ; 

1,478 
15,769 
6,228 

New  Zealand 

15,769 
6,228 

Korea 

Total 

258, 910 

3,609 

625,860 

10,300 

898,679 

30  PANMIA  CANAL  TRAFFIC  AND  TOLLS. 

The  recorded  entrances  and  clearances  of  898,679  tons,  as  stated  in  Table  VI,  should  be  increased  by  the 
vessel  tonnage  required  to  handle  the  trade  carried  on  between  the  eastern  seaboard  of  the  United  States  and 
Pacific  countries  indirectly  by  way  of  Europe.  The  Panama  route  from  New  York  to  Yokohama  via  San 
Francisco  and  the  great  circle  is  3,768  miles  shorter  than  the  Suez  route;  to  Shanghai  the  distance  via  Panama 
is  1,876  miles  less.  Hongkong  and  Manila  are  almost  equally  distant  from  New  York  via  the  Panama  and 
Suez  routes.  Sydney,  Austraha,  is  3,932  and  Wellington,  New  Zealand,  5,590  miles  nearer  New  York  via 
the  Panama  Canal  than  via  the  Good  Hope  route;  and  WeUington  is  2,493  miles  nearer  New  York  Ada  the 
Panama  Canal  than  by  way  of  the  Straits  of  Magellan.  With  the  possible  exception  of  a  portion  of  the  tonnage 
moving  to  and  from  Hongkong  and  the  Philippines,  the  bulk  of  the  trade  of  our  Atlantic  and  Gulf  ports  with 
the  Orient  east  of  Singapore  and  with  Australasia  and  Oceania  will  use  the  Panama  Canal.  Some  vessels 
engaged  in  the  trade  with  Hongkong  and  the  Pliihppines  will  continue  to  take  the  route  via  the  Suez  Canal 
and  the  ports  in  southern  Asia.  Likewise,  some  vessels  will  sail  from  Europe  for  Hongkong  and  Manila  via 
the  Suez  and  will  return  to  Europe  via  the  west  coast  of  the  United  States  and  the  Panama  Canal. 

According  to  the  statements  of  exporters,  steamship  agents,  and  navigation  companies,  a  considerable 
portion  of  the  imports  into  our  Atlantic  and  Gulf  ports  from  Oceania  is  handled  indirectl}-  by  way  of  Europe. 
Our  records  state  that  but  9,985  tons  of  vessels  entered  directly  from  Oceania,  whereas  our  imports  would 
have  required  a  larger  tonnage  of  shipping  had  all  the  imports  been  brought  directly  from  Oceania.  Our 
imports  from  the  Orient,  however,  are  nearly  all  brought  to  us  directly.  They  do  not  reach  us,  in  large  amounts, 
by  way  of  Europe.  It  is  estimated  by  those  engaged  in  the  trade  that  about  90  per  cent  of  our  imports  from 
Oceania  and  5  per  cent  of  our  imports  from  the  Orient  east  of  Singapore  reach  the  United  States  in  vessels  that 
are  not  recorded  as  entering  from  the  countries  of  Oceania  or  the  Orient. 

The  portion  of  the  export  trade  from  our  Atlantic-Gulf  coast  to  Oceania  that  is  handled  indirectly  probably 
does  not  exceed  25  per  cent.  The  percentage  of  the  exports  to  the  Orient  shipped  indirectly  is  about  the  same 
as  in  the  case  of  imports. 

The  total  imports  credited  to  the  Atlantic  and  GuK  ports  of  the  United  States  from  Oceania  and  the  Orient 
east  of  Singapore,  in  1910,  were  valued  at  $66,483,000.  Some  of  these  imports  entered  by  way  of  our  Pacific 
coast  ports.  Indeed,  in  1910,  the  Atlantic  and  Gulf  ports  received  by  rail  from  the  Pacific  ports  imports  valued 
at  $9,770,073.  Moreover,  the  New  York  customliouse  reports  state  that,  in  1911,  imports  appraised  at 
$3,715,619  were  received  at  New  York  by  way  of  the  Canadian  Pacific  Railroad  and  the  ports  of  British  Columbia. 

The  ratio  of  New  York's  1911  to  its  1910  imports  from  Oceania  and  the  Orient,  applied  to  the  1910  imports 
from  those  sections  into  the  other  ports  than  New  York  on  the  Atlantic  seaboard  of  the  United  States,  would 
make  the  approximate  value  of  all  imports  at  the  Atlantic  and  Gulf  ports  received  through  Pacific  coast  ports 
in  1911  about  $13,927,900.  This  sum  deducted  from  the  total  value  of  the  imports  of  the  Atlantic  and  Gulf 
ports  from  Oceania  and  the  Orient  east  of  Singapore,  leaves  $52,555,000. 

If  it  be  assumed,  as  it  probably  may  safely  be  assumed,  that  90  per  cent  of  the  imports  from  Oceania  and 
5  per  cent  of  the  imports  from  the  Orient  to  our  eastern  seaboard  are  at  present  received  indirectly,  then  the 
indirect  imports  aggregate  about  $18,418,700,  or  35  per  cent,  of  the  total  I'eceived  by  water.  If  it,  also,  be 
assumed  that  25  per  cent  of  the  exports  from  our  Atlantic  and  Gulf  ports  to  Oceania  and  5  per  cent  of  those 
to  the  Orient  east  of  Singapore  are  handled  indirectly,  the  indirect  exports  would  aggregate  about  $8,996,000, 
or  12  J  per  cent,  of  our  total  exports  to  the  trans-Pacific  sections  under  consideration.  These  ratios  have  been 
adopted  after  advising  with  some  of  the  principal  steamsliip  companies  engaged  in  our  oriental  trade. 

A  portion  of  the  tonnage  of  sMps  that  enter  the  Atlantic  ports  of  the  United  States  from  southern  Asiatic 
countries  should  be  added  to  the  recorded  entrances  from  the  Orient  east  of  Singapore  and  Oceania.  The 
Bureau  of  Statistics  reports  the  entrances  from  southern  Asia  to  be  339,429  tons,  or  29  per  cent  in  excess  of 
the  entrances  from  countries  east  of  Singapore,  whereas  the  imports  of  the  Atlantic  and  Gidf  seaboards  from 
southern  Asia  exceed  those  from  the  remainder  of  the  Orient  and  from  Oceania  by  only  23  })er  cent.  The 
recorded  entrances,  as  given  in  Table  VI,  maj^,  therefore,  properly  be  increased  by  about  6  per  cent  in  order 
to  include  the  tonnage  now  accredited  to  southern  Asia. 

The  additions  that  need  to  be  made  to  the  recorded  tonnage,  as  stated  in  Table  W,  in  order  to  account 
for  the  indirect  trade  by  way  of  Europe,  increase  the  clearances  by  12^  per  cent,  or  79,520  tons.  The  entrances 
need  to  be  increased  35  per  cent,  or  91,881  tons,  to  cover  the  imports  via  Europe,  and  6  per  cent,  or  15,751 
tons,  because  of  the  fact  that  vessels  bringing  goods  from  the  Orient  to  the  eastern  part  of  the  United  States 
may  be  entered  from  southern  Asia.     These  changes  would  make  the  clearances  of  the  Atlantic-Gulf  ])orts  in 


PANAMA  CANAL  TEAFFIC  AND  TOLLS.  31 

the  trade  with  Oceania  and  the  Orient  east  of  Singapore  715,680  tons,  and  the  entrances  370,151  tons,  a  total 
of  1,085,831  tons. 

In  view  of  the  known  volume  of  trade  between  the  Atlantic  and  Gulf  seaboards  of  these  countries,  a  vessel 
tonnage  of  1,085,831  tons  must  be  regarded  as  too  low.  In  the  reasoning  in  the  above  paragraphs  hberal  allow- 
ances were  made  for  the  trade  handled  indirectly  by  way  of  Europe,  but  it  is  evident  that  the  tonnage  recorded 
by  the  Bureau  of  Statistics  as  having  entered  cUrectly  from,  or  as  having  cleared  for  points  beyond,  Singapore 
must  be  much  below  the  actual  vessel  movement.  The  value  of  the  total  trade  between  the  Atlantic  and  GuK 
seaboards  of  the  United  States  and  Oceania  and  the  Orient  east  of  Singapore  in  1910  was  $130,444,945;  and, 
after  deducting  the  imports  by  rail  from  the  Pacific  ports,  the  trade  by  water  was  valued  at  about  $116,517,000. 
The  trade  of  the  same  countries  with  the  United  States  via  our  Pacific  ports  and  by  way  of  the  northern  border 
ports  of  the  United  States  was,  in  1910,  valued  at  $101,418,178;  and  if  the  in-transit  import  trade  through 
our  Atlantic  and  GuK  ports  to  the  west  coast  of  the  United  States  be  added,  the  total  value  becomes  $115,346,170. 
This  sum  is  less  than  the  value  of  the  trade  between  the  eastern  ports  of  the  United  States  and  Oceania  and 
the  Orient.  Moreover,  our  imports  from  those  foreign  sections  via  Europe  are  credited  to  our  commerce  with 
Europe,  not  to  our  trade  with  the  Orient  and  Oceania.  Were  this  trade  via  Europe  added  to  the  recorded 
trade  of  the  Atlantic  and  Gulf  ports,  the  difl'erence  between  the  value  of  the  trade  with  Oceania  and  the  Orient 
via  the  east  and  west  coasts  of  the  United  States  would  be  still  greater. 

Though  the  value  of  the  trade  at  the  eastern  ports  of  the  United  States  with  Oceania  and  tlic  Orient  east 
of  Singapore  was  greater,  in  1910,  than  the  value  of  our  trade  carried  on  with  those  trans-Pacific  sections  at 
the  Pacific  and  northern  border  ports  of  the  United  States,  the  Bureau  of  Statistics  recorded  entrances  and 
clearances  of  2,512,697  tons  at  the  Pacific  ports  of  the  United  States.  The  toimage  of  vessels  engaged  in  the 
trade  between  the  Pacific  ports  of  the  United  States  and  Oceania  and  the  Orient  would  be  somewhat  larger 
than  the  corresponding  tonnage  at  our  Atlantic  and  GuK  ports,  because  the  exports  from  our  Pacific  ports 
include  bulkier  products,  and  also  for  the  reason  that  more  of  the  traffic  across  the  Pacific  moves  in  regular 
steamship  lines  carrpng  passengers  as  well  as  freight;  but  the  difference  between  2,512,697  and  1,085,831  tons 
is  excessive. 

The  records  kept  by  the  New  Panama  Canal  Co.  showed  that,  in  1899,  there  were  1,271,357  tons  of  vessel 
movements  between  the  Atlantic  and  GuK  seaboard  and  Oceania  and  the  Orient;  but'  their  records  were  for 
a  somewhat  wider  area  in  the  Orient  than  is  included  in  the  above  analysis. 

The  report  of  the  Isthmian  Canal  Conmiission  in  1901,  after  discussing  the  statistical  problem  here  under 
consideration,  accepted  for  the  total  entrances  and  clearances  between  the  Atlantic-Gulf  ports  of  the  United 
States  and  Oceania  and  the  Orient  east  of  Singapore  double  the  tonnage  of  the  recorded  clearances.  If  the 
same  method  were  now  followed  the  total  entrances  and  clearances  for  the  trade  under  consideration  would  be 
1,272,320  tons.  It  was  stated  in  the  report  of  1899-1901  that  the  total  of  entrances  and  clearances  was  probably 
more  than  double  the  recorded  clearances,  and  it  is  doubtless  true  that  the  actual  vessel  movements  to-day  are 
in  excess  of  double  the  tonnage  of  the  recorded  clearances  from  our  Atlantic-GuK  coast  directly  to  Oceania  and 
oriental  countries  beyond  Singapore. 

It  would  hardly  be  possible  to  handle  the  volume  of  trade  now  carried  on  between  the  Atlantic-Gulf  ports 
of  the  United  States  and  Oceania  and  the  Orient  beyond  Singapore  w^th  vessel  entrances  and  clearances  at 
our  Atlantic-GuK  ports  of  less  than  1,500,000  tons,  and  this  tonnage  is  believed  to  be  a  conservative  estimate. 
In  accepting  this  as  the  probable  tonnage,  no  allowance  has  been  made  for  the  probable  diversion,  after  the 
opening  of  the  Panama  Canal,  of  an  appreciable  volume  of  trade  between  the  United  States  and  the  Orient 
from  the  present  routes  via  the  Pacific  ports  of  the  United  States  to  routes  via  the  Atlantic  and  GuK  ports. 
Unquestionably  some  of  the  trade  of  the  eastern  and  middle  sections  of  the  United  States  with  trans-Pacific 
countries  wiR  be  diverted  from  the  transcontinental  railroads  and  the  routes  across  the  Pacific  to  the  railroads 
leading  to  the  Atlantic  and  GuK  ports  and  to  the  steamship  hues  from  those  ports  through  the  Panama  Canal 
to  and  from  the  Orient. 

The  total  tonnage  of  vessel  movements  between  the  eastern  part  of  the  United  States  and  Oceania  and 
the  Orient  east  of  Singapore  is  apportioned  by  Table  XI  between  the  tonnage  of  vessels  with  cargo  and  of 
vessels  in  ballast.  In  order  to  do  this  it  was  necessary  to  adopt  an  arbitrary  ratio,  and  it  was  assumed  that 
the  ratio  for  tins  tonnage  was  the  same  as  that  of  the  recorded  entrances  and  clearances  for  the  trade  in  question. 
In  dividing  the  total  of  1,500,000  tons  between  entrances  and  clearances,  it  was  assumed  that  the  clearances 
must  have  exceeded  the  entrances  by  300,000  tons,  because  the  commodities  exported  are  more  bulky  in  char- 
acter than  those  imported. 


32  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Vessel  Tonnage  Engaged  in  the  Present  Traffic  Across  the  Isthmus  of  Panama. 

The  tonnage  of  vessels  entering  and  clearing  at  Colon  and  Panama  is  exceptionally  large  in  comparison  with 
the  amount  of  freight  actually  loaded  and  discharged.  The  following  table,  Number  VII,  shows  that  the  ton- 
nage of  entrances  and  clearances  at  Colon,  in  1909-10,  amounted  to  3,716,573  tons,  and  at  Panama  to  777,959 
tons. 


Table   VII. 


-NET    REGISTER    TONNAGE,    ENTRANCES    AND    CLEARANCES    OF    VESSELS    AT    COLON    AND 

PANAMA.   1909-10. 


Entrances. 

Clearances. 

Total. 

1,870,063 
388,060 

1,846,510 
389, 899 

3,716,573 

777,959 

2,258,123 

2,236,409 

4,494,532 

The  Panama  EaUroad  in  1909-10  carried  236,241  tons  of  through  freight  from  Colon  to  Panama  and 
145,017  tons  from  Panama  to  Colon.  Twenty-eight  per  cent  of  the  total  freight  moving  from  Colon  to  Panama 
was  through  freight,  and  of  the  total  moving  from  Panama  to  Colon,  45  per  cent  was  through  freight.  If  these 
ratios  be  applied  respectively  to  the  vessel  entrances  at  Colon  and  at  Panama  they  produce  a  total  of  698,244 
tons.  It  is  assumed  that  this  tonnage  of  shipping  was  required  in  1909-10  to  bring  to  Colon  and  Panama  the 
381,258  cargo  tons  of  through  freight  that  crossed  the  Isthmus. 

Panama,  and  more  particularly  Colon,  are  ports  of  call,  and  vessels  entering  and  clearing  them  have  cargo 
for  many  other  places.  The  tonnage  of  vessels  used  to  carry  to  and  from  the  Isthmus  the  381,258  tons  of 
freight  that  was  taken  across  Panama  in  1909-10  can  not  be  regarded  as  the  tonnage  which  would  have  been 
required  if  the  canal  had  been  in  existence.  It  is  assumed  that  most  of  tliis  freight  would  in  that  case  have 
been  carried  by  vessels  that  passed  through  the  canal  and  not  by  ships  using  Colon  and  Panama  as  ports  of 
call.  In  estimating  how  great  this  vessel  tonnage  would  have  been,  the  Colon  entrances  and  clearances  must 
be  disregarded  because  of  the  large  amount  of  Isthmian  Canal  Commission  freight  and  because  Colon  is  a 
port  of  call  for  a  large  number  of  ocean  lines  that  carry  passengers  as  well  as  freight.  The  entrances  and 
clearances  at  the  port  of  Panama  are  likewise  to  be  accounted  for  in  part  by  the  fact  that  vessels  call  there 
en  route,  but  the  tonnage  of  such  vessels  as  well  as  the  shipping  employed  to  carry  freight  to  Panama  for  the 
Canal  Commission  is  much  less  than  is  the  corresponding  shipping  entering  and  clearing  Colon. 

It  may  apparently  be  assumed  that  one-third  of  the  clearances  from  Panama  are  either  of  vessels  that  have 
called  en  route  or  are  of  ships  that  have  brought  goods  to  be  used  on  the  Canal  Zone,  and  that  the  remaining 
two-thirds  of  the  clearances,  259,932  tons  of  shipping,  were  employed  in  transporting  from  Panama  the  236,241 
tons  of  through  freight  that  reached  Panama  from  Colon  for  shipment  to  points  beyond.  The  tonnage  of  through 
freight  moving  by  rail  from  Panama  to  Colon  is  61  per  cent  of  the  tonnage  moving  in  the  opposite  direction, 
and  it  is  probable  that  the  tonnage  of  vessels  that  entered  Panama  to  bring  in  the  145,017  tons  of  through 
freight  mo^Hng  northward  across  the  Isthmus  is  approximately  61  per  cent  of  the  tonnage  of  vessel  clearances 
at  Panama,  or  158,558  tons.  By  this  reasoning  the  total  tonnage  of  entrances  and  clearances  to  be  credited  to 
the  trade  via  the  Isthmus  in  1909-10  becomes  418,490  tons. 

The  figures  used  in  the  above  estimate  are  based  upon  the  traffic  of  1909-10.  The  trans-Isthmian  trade 
in  1910-11  was  larger  than  during  the  previous  year,  but  in  the  estimate  here  made  the  data  for  1909-10  were 
taken  because  the  1910-11  figures  for  vessel  entrances  and  clearances  were  not  obtainable,  and  because  most 
of  the  statistics  in  this  chapter  are  for  1909-10. 

Vessel  Tonnage  of  the  Trade  of  Eastern  Canada  with  Alaska,  Chile,  and  Australia. 

No  direct  vessel  movements  between  eastern  Canada  and  the  ports  of  the  Pacific  coast  of  the  United  States 
are  recorded  for  the  year  1909-10.  There  may  have  been  some  traffic  by  way  of  the  Isthmus  of  Panama,  but  this 
would  be  included  in  the  tomiage  of  the  Panama  traffic. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


33 


Table   Vm NET   REGISTER   TONNAGE,    ENTRANCES   AND   CLEARANCES,   VESSEL  MOVEMENTS   BETWEEN 

EASTERN  CANADA  AND  ALASKA,  CHILE,  AND  AUSTRALIA  (1910). 


1 

Countries. 

Vessels  in  ballast. 

Vessels  with  cargo. 

Total. 

Entered.' 

Cleared.2 

Entered.i 

Qeared.! 

Entered.i 

Cleared.! 

Alaska 

3,243 

1,478 

10, 177 

13,608 
2,836 
4.326 

13,410 

IS,  086 

Chile 

2,836 

4.326 

Total 

3,233 

1,478 

10,177 

20,770 

13,410 

22.243 

1  Entered  eastern  Canada  from  .\Iaska,  Chile,  and  Australia. 

2  Cleared  from  eastern  Canada  to  Alaska,  Chile,  and  Australia. 
'  All  clearances  recorded  as  with  cargo. 

Table  VIII  shows  that  in  1910,  35,658  tons  of  vessels  moved  directly  from  eastern  Canada  to  Alaska, 
Chile,  and  Australia.'  As  in  the  case  of  shipments  from  the  eastern  to  the  western  seaboard  of  the  United 
States,  this  tonnage  may  be  accepted  without  change.  The  Australian  tonnage  ia  Table  VIII  is  small,  because 
the  trade  of  eastern  Canada  with  Australia  has  not  been  developed.  There  may  be  a  sUght  traffic  between 
eastern  Canada  and  Australia  via  Europe,  but  this  would  be  rucluded  in  the  tonnage  of  vessels  moving  between 
Europe  and  Australia. 

The  Amkrican-Hawaiian  Steamship  Co.'s  Addition  to  the  Tonnage  of  the  Panama  Canal. 

Since  1907  the  American-Hawaiian  Steamship  Co.  has  maintained  a  ser%T,ce  between  New  York,  San  Fran- 
cisco, and  Hawaii  by  way  of  Tehauntepec  and  the  railway  across  that  Isthmus.  The  entrances  and  clearances 
of  the  vessels  employed  in  that  trade  during  the  fiscal  years  1910  and  1911  are  shown  in  Table  IX: 

Table  IX.— NET  REGISTER  TONNAGE,  ENTRANCES  AND  CLEARANCES,  AMERICAN-HAWAIIAN  STEAMSHIP  CO.'S 

FLEET,   1910  AND  1911. 


Entrances  at  New  York  from  Puerto,  Mexico.. 
Clearances  from  New  York  for  Puerto,  Mexico. 
Entrances  at  San  Francisco  from  Salina  Cruz.. 
Clearances  from  San  Francisco  for  Salina  Cruz. 

Entrances  at  Hawaii  from  Salina  Cruz 

Clearances  from  Hawaii  for  Salina  Cruz 


215,683 

243,943 

218,530 

244,887 

218,181 

263,038 

97,014 

124,796 

138,261 

157,339 

135,422 

129,824 

To  accept  without  analysis  these  clearances  and  entrances  as  a  measure  of  the  tonnage  which  the  American- 
Hawaiian  fleet  would  have  caused  to  pass  through  the  Panama  Canal  in  1910  and  1911  would  exaggerate  the 
tonnage.  The  vessel  movements  between  New  York  and  Puerto  Mexico,  can  not,  however,  be  taken  as  the  ton- 
nage which  would  have  used  the  canal;  because  if  the  vessels  had  been  operated  through  a  Panama  Canal  to 
San  Francisco  and  Hawaii,  they  would  have  made  fewer  trips  than  they  made  between  New  York  and  Puerto 
Mexico. 

A  better  measure  of  the  vessel  tonnage  to  be  credited  to  the  available  canal  traffic  on  account  of  the  present 
trade  by  way  of  the  Isthmus  of  Tehauntepec  may  be  obtained  by  estimating  the  number  of  runs  each  vessel  of 
the  American-Hawaiian  Co.'s  fleet  would  make  in  a  year  from  New  York  to  the  west  coast  and  back  via  a  Panama 
Canal.  Had  the  fleet  in  sei-vice  during  1910  been  operated  through  the  Panama  Canal,  it  would  have  added 
363,426  tons  to  the  tonnage  using  the  waterway.  Five  additional  vessels  of  4,250  tons  each  were  then  being 
constructed  for  service  between  New  York  and  the  Pacific  coast  of  the  United  States  and  they,  had  they  been 
operated,  would  have  added  110,712  tons  to  the  canal's  traffic. 


'  The  Alaskan  tonnage  is  taken  from  the  report  of  the  United  States  Bureau  of  Statistics,  and  the  Chilean  and  Australian  tonnage  from  the  ofScial  publication  of 
Canada. 


34 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Tonnage  of  Vessels  Moving  Between  the  Eastern  and  Western  Seaboards  of  the  United  States 

VIA  THE  Straits  of  Magellan. 

The  coasting  trade  between  the  two  seaboards  of  the  United  States  by  way  of  the  Straits  of  Magellan  and 
Cape  Horn,  in  1910,  amounted  to  172,655  tons,  117,147  of  which  were  entrances  at  Pacific  ports  and  55,508 
clearances  therefrom.  Over  50  per  cent  of  the  vessels  moving  from  the  Atlantic  to  the  Pacific  ports  of  the 
United  States  clear  from  our  west  coast  to  Europe,  from  whence  they  return  to  the  United  States. 

Summary. 

The  foregoing  detailed  statistics  of  the  vessel  tonnage  that  might  have  used  a  Panama  Canal  in  1910  are 
summarized  ia  Tables  X  and  XI.  Table  X  states  the  entrances  and  clearances  above  considered  just  as  they 
were  taken  from  the  tonnage  reports  of  the  United  States  and  of  various  foreign  countries.  As  far  as  possible, 
separate  figures  are  given  for  clearances  and  entrances,  for  vessels  with  cargo,  for  vessels  in  ballast,  for  sailing 
vessels,  and  for  steamships. 

Table  X SUMMARY   OF   RECORDED   NET   REGISTER  TONNAGE   OF  VESSELS   EMPLOYED   IN   COMMERCE   THAT 

WOULD    HAVE    USED    THE    PANAMA    CANAL   IN    1909-10. 

TOTAL  ENTRANCES  AND  CLEARANCES,  AS  STATED  IN  ABOVE  TABLES,  WITHOUT  DEDUCTIONS. 


Entrances. 

Clearances. 

Total  en- 
trances. 

Total  clear- 
ances. 

In  total  entrances  and  clear- 
ances are  included— 

Total  en- 

With 
cargo. 

In  bal- 
last. 

With 
cargo. 

In  bal- 
last. 

Sail  en- 
trances. 

Sail 
clear- 
ances. 

Total 

sail 

tonnage. 

trances  and 
clearances. 

Europe  with— 

1 
1,978,592 

40,394 
419,866 

(') 
6,145,757 

300,909 
(') 

215,683 
258,910 

(') 
(') 

10, 177 

2 

29,265 

(■) 
226,702 

(') 

3,609 

(') 
(') 

3,233 

8 
2,027,288 

59,357 
257,054 
(') 
5,023,132 

166,302 
(') 

218,539 
625,860 

(') 
C) 

20,770 

4 
150,312 

12,799 

0) 

433,510 

384 
W 

10,300 

(•) 
(') 

1,478 

6 

2,007,857 
40,394 

419,865 

(') 
6,372,459 

300,909 
117,147 

215,683 
262,519 

388,060 
1,870,063 

13,410 

6 

2,177,600 
59,357 

269,853 

(') 
5,456,642 

166,686 
55,508 

218,539 
636,160 

389,899 
1,846,510 

22,248 

7 
586,191 

6,494 
193,587 

8 

468,726 
59,  448 
160,454 

9 

1,054,917 
65,942 
354,041 

10 

4,185,457 

99,751 

689,718 

158,000 

11,829,101 

467,595 
172,655 

434,222 
898,679 

777,959 
3,716,673 

35,658 

201,579 
10,304 

247,552 

6,686 
(■) 

449,131 
16,990 

Eastern  United  States  coast  with— 

Pacific  coast  of  United  States  and  Hawaii  (via  American- 

31,715 

42,924 

■  74,639 

Panama  tra£Qc — 

8,618 
1,915 

8,225 
2,096 

16,843 
4,011 

Eastern  Canada  with— 

9,370,287 

262,809 

8,398,302 

608,783 

n2, 008, 306 

< 11,299,002 

1,040,403 

996,111 

2,036,514 

•23,465,368 

1  Not  reported  whether  with  cargo  or  in  ballast,  but  the  totals  are  entered  under  "  Total  entrances  "  and  "  Total  clearances,"  with  the  exception  of  the  158,000  tons, "  Pacific 
coast  of  United  States  via  Suez  Canal,"  which  can  be  included  only  in  the  final  column,  "  Total  entrances  and  clearances."  In  the  entrance  and  clearance  figures  for  the 
Pacific  coast  of  the  United  States  via  Cape  Horn,  steam  and  sail  tonnages  are  not  separated. 

2  Not  including  Hawaiian  traffic. 

>  Entrances  and  clearances  at  New  York  from  and  to  Puerto  Mexico.    For  tonnage  at  Salina  Cruz,  Hawaii,  and  San  Francisco,  see  Table  IX. 

4  The  "Total  entrances"  and  "Total  clearances"  exceed  the  sum  of  the  entrances  and  clearances  "with  cargo"  and  "with  ballast"  by  the  amount  of  the  tonnage  not 
subdivided  into  "with  cargo  "  and  "in  ballast."  Moreover,  the  final  column  of  "  Total  entrances  and  clearances  "  Includes  158,000  tons— Pacific  coast  of  United  States  via 
Suez  Canal— not  comprised  in  the  preceding  columns 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


35 


The  entrances  and  clearances  after  the  duplications,  shortages,  and  overstatements  of  the  recorded  tonnage 
have  been  eliminated  are  presented  in  Table  XI.  The  total  tonnage  of  vessels  that  might  have  advantageously 
used  the  Panama  Canal  in  1910  was  8,328,029  tons. 

Table  XI,— NET  REGISTER   TONNAGE    OF   VESSELS    THAT   MIGHT   HAVE   ADVANTAGEOUSLY  USED  A   PANAMA 

CANAL  IN  1909-10. 

TOTAL  ENTRANCES  AND  CLEARANCES,  AS  STATED  IN  ABOVE  TABLES.  WITH  PROPER  DEDUCTIONS. 


Entrances. 

Clearances. 

Total  en- 
trances. 

Total  clear- 
ances. 

In  total  entrances  and  clear- 
ances are  included— 

Total  en- 

With 
cargo. 

In  bal- 
last. 

With 
cargo. 

In  bal- 
last. 

Total 

sail 
tonnage. 

trances  and 
clearances. 

Europe  with— 

1 
1,524,622 
80,788 
419,865 
0) 
604,831 

300,909 
(') 

181,713 
591,600 

(■) 
(') 

10,177 

2 
29,205 

(') 
13,873 

(') 

8,900 

(') 
(') 

3,233 

3 

1,444,201 
118,714 
257,054 
(•) 
522,078 

166,302 
(') 

181,713 
885,600 

(') 
0) 

20,770 

4 

150,312 

12,799 
(') 
33,803 

384 
(') 

14,400 

(') 
(•) 

1,478 

6 

1,553,887 
80,788 
419,865 
(•) 
618,704 

300,909 
117,147 

181,713 
600,000 

158,558 

6 

1,594,513 
118,714 
269,853 

(') 
555,881 

166,686 
55,508 

181,713 
900,000 

259,932 

7 
586,191 

12,988 
193,587 

8 

468,726 
118,896 
160,454 

9 

1,054,917 
131,884 
354,041 

10 

3,148,400 

199,502 

Pacific  United  States,  British  Columhia,  and  Hawaii 

689,718 

158,000 

1,174,585 

467,595 
172,655 

24,934 

10,304 
(■) 

32,072 

6,686 
(') 

57,006 
16,990 

Eastern  United  States  coast  with— 

Pacific  coast  of  United  States  and  Hawaii  (via  American- 

31,715 

42,924 

74,639 

1,500,000 

Panama  trafiBc- 

418,490 

Eastern  Canada  with— 

13,410 

22,248 

1,915 

2,096 

4,011 

35,658 

3,714,505 

54,771 

3,596,432 

213,176 

3  4,044,981 

3  4,125,048 

861,634 

831,854 

1,693,488 

'8,328,029 

'  Not  reported  whether  with  cargo  or  in  ballast,  but  the  totals  are  entered  under  "Total  entrances"  and  "Total  clearances,"  with  the  e.xception  of  the  158,000  tons 
"  Pacific  coast  of  the  United  States  via  Suez  Canal,"  which  can  be  included  only  in  the  final  column,  "Total  entrances  and  clearances."  In  the  entrance  and  clearance 
figures  for  the  Pacific  coast  of  the  United  States  via  Cape  Horn,  steam  and  sail  tonnages  are  not  separated. 

*  Not  including  Hawaii. 

•  The  "Total  entrances"  and  "Total  clearances"  exceed  the  sum  of  the  entrances  and  clearances  "with  cargo"  and  "in  ballast"  by  the  amount  of  the  tonnage  not 
subdivided  into  "with  cargo"  and  "in  ballast."  Moreover,  the  final  column  of  "Total  entrances  and  clearances"  includes  158,000  tons— Pacific  coast  of  United  States  via 
Suez  Canal — not  reported  in  the  preceding  columns. 

Separate  figures  for  vessels  with  cargo  and  in  ballast  are  not  available  in  every  case.  The  official  reports 
distinguish  between  cargo  and  ballast  vessel  movements  as  regards  7,578,884  tons,  or  91  per  cent  of  the  aggre- 
gate. Of  this  total,  7,310,937  net  tons  were  for  vessels  with  cargo,  and  but  267,947  tons  were  for  vessels  in  ballast. 
Thus,  96  per  cent  of  the  tonnage  which  might  liave  used  the  canal  in  1909-10  was  made  up  of  vessels  with 
cargo.     In  the  same  year  95.7  per  cent  of  the  tonnage  of  the  Suez  Canal  consisted  of  vessels  with  cargo. 

The  statistics  distinguishing  between  sail  and  steam  tonnage  include  8,155,374  tons,  or  97^  per  cent  of 
the  total.     Of  this  tonnage,  but  1,693,488  tons,  or  20^0  per  cent  were  for  sailing  vessels. 

The  recorded  tonnage  of  sailing  vessels  aggregated  2,179,951  tons.  In  revising  the  figures  so  as  to  avoid 
duplications,  overstatements,  and  shortages,  the  recorded  sail  tonnage  between  Europe  and  western  South 
America,  Pacific  United  States,  British  Columbia,  and  Hawau  v/as  accepted  without  change,  because  the  sailing 


36  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

vessels  are  chartered  ships  that  usually  carry  full  cargo  for  a  single  destination.  The  tonnage  of  sail  entrances 
and  clearances  for  the  trade  between  Europe  and  western  Central  America,  Mexico,  Oriental  countries  east  of 
Singapore,  and  Oceania  was  revised  according  to  the  methods  previously  applied  to  the  combined  tonnage  of 
sail  and  steam  vessels.  The  sail  tonnage  between  the  eastern  United  States  and  the  Orient  and  Oceania  was  ac- 
cepted as  recorded,  because  the  indirect  shipments  via  Europe  are  not  made  in  sailing  vessels.  The  sail  tonnage 
for  the  trade  between  the  eastern  United  States  and  western  South  America,  Pacific  Mexico,  and  Hawaii  was 
also  accepted  without  change.  No  sail  toimage  was  allowed  for  the  shipments  across  the  Isthmus  of  Panama, 
because  none  was  recorded  at  the  port  of  Panama  in  1910.  The  sail  tonnage  moving  between  eastern  Canada  and 
Alaska,  Chile,  and  Australia  was  accepted  without  change. 

It  may  be  contended  that  this  sail  tonnage  should  not  be  included  in  the  tonnage  of  available  canal  traffic, 
because  sailing  vessels  will  not  use  the  canal.  The  sail  tonnage  should,  however,  be  included,  because  the  ad- 
vantages of  the  canal  in  the  trade  of  the  various  regions  considered  are  so  manifest  that  the  very  certainty 
that  sailing  vessels  will  not  use  the  canal  will  cause  steamers  to  be  shifted  to  the  canal  routes  and  cause  sailing 
vessels  to  be  employed  elsewhere.  Sailing  vessels  account  for  but  a  relatively  small  share  of  the  total  tonnage  of 
vessels  employed  in  the  commerce  of  the  regions  tributary  to  the  canal.  After  the  canal  is  completed,  these 
sailing  vessels  will  be  employed  on  other  routes. 

The  opening  of  the  Panama  Canal  will  necessarily  hasten  the  substitution  of  steamers  for  sailing  vessels 
in  the  world's  commerce;  but  the  effect  will  simply  be  to  quicken  a  change  now  in  progress.  The  world's  seagoing 
sail  tonnage  declined  from  14,185,836  tons  in  1873-74  to  11,636,289  in  1888-89;  to  8,693,769  in  1898-99;  and 
to6,412,211  in  1910-11;  while  steam  tonnage  increased  from  4,328,193  in  1873-74  to  41,061,077  in  1910-11. 


CHAPTER  III. 

INCREASE  IN  AVAILABLE  CANAL  TRAFFIC 
1899  TO   1914-15. 

37 


CHAPTER  III. 

INCREASE  IN  AVAILABLE  CANAL  TRAFFIC  1899  TO  1914-15. 

The  investigation  of  traffic  statistics  in  accordance  with  the  metliods  explained  in  the  preceding  chapter 
shows  that  had  tlie  Panama  Canal  been  in  existence  during  the  fiscal  year  ending  June  30,  1910,  it  might  advan- 
tageously have  been  used  by  vessels  with  an  aggregate  net  register  tonnage  of  8,328,029.  The  purpose  of  meas- 
uring, with  all  possible  accuracy,  the  traffic  available  for  the  use  of  a  canal  waa  to  find  an  answer  to  the  much 
more  important  question  of  what  the  available  tonnage  will  be  in  1914,  at  the  time  of  the  opening  of  the  Panama 
Canal.  Intelligent  action  Ln  fixing  the  canal  tolls  requires  a  knowledge  of  the  volume  of  traffic  upon  which 
charges  may  be  levied.  The  purpose  of  transit  dues  is  to  secure  revenue,  and  the  receipts  at  the  canal  will  be 
the  product  of  the  rate  of  tolls  and  the  volume  of  traffic. 

In  the  report  of  the  Isthmian  Canal  Commission,'  published  in  1901,  an  account  was  given  of  two  investiga- 
tions that  were  made  to  determine  the  net  register  tonnage  of  the  traffic  that  might  advantageously  have  used 
an  isthmian  canal  during  the  year  1899.  It  was  found  that  the  statistics  of  entrances  and  clearances  indicated 
an  available  traffic  of  somewhat  less  than  5,000,000  tons  net  register — 4,891,075  tons;  while  the  records  of 
vessel  movements  that  had  been  kept  by  the  New  Panama  Canal  Co.  showed  an  available  traffic  of  somewhat 
over  5,000,000  tons,  the  exact  figures  being  5,001,798  net  register.  In  the  following  table  the  Panama  Canal 
traffic  of  1910,  as  determined  by  the  investigation  of  entrance  and  clearance  statistics,  is  compared  item  by 
item  with  the  corresponding  statistics  for  the  year  1899.  Three  items  appear  in  the  1910  column  that  are  not 
to  be  found  in  the  1899  column.  Thus  the  figures  for  the  two  periods  are  not  entirely  comparable,  but  the 
table  is  of  especial  value  because  it  shows  the  rapid  increase  in  the  commerce  of  Europe  and  the  United  States 
with  western  South  America,  and  because  it  indicates  the  comparatively  small  volume  of  traffic  now  moving 
between  the  west  coast  of  the  United  States  and  the  Atlantic  seaboards  of  the  United  States  and  Europe. 

Table    I.— VESSEL    TONNAGE,    ENTRANCES    AND    CLEARANCES,    AVAILABLE    PANAMA    CANAL    TRAFFIC,    1899 

AND   1910. 


Item. 


Europe  with— 

Western  South  America 

Western  Central  American  and  Mexico 

Pacific  United  States,  British  Columbia,  and  Hawaii 

Pacific  United  States  via  Suez  Canal 

Oriental  countries  east  of  Singapore  and  Oceania 

Eastern  seaboard  of  United  States  with— 

Western  South  America,  Pacific  Mexico,  and  Hawaii 

Pacific  coast  of  United  States  via  Cape  Horn 

Pacific  United  States  and  Hawaii  via  American-Hawaiian  Steamship  Co  . 

Oriental  countries  east  of  Singapore  and  Oceania 

Panama  traffic 

Eastern  Canada  with  Alaska,  Chile,  and  Australia 

Total 


1,771,858 
140,000 
642,180 


166,364 
109,312 


908,140 
336,998 


3,148,400 
199,502 
689,718 
158,000 

1.174,585 

467,595 
172,655 
363,426 
1,500,000 
418,490 
35,658 


The  tonnage  of  traffic  available  for  the  use  of  an  American  isthmian  canal  Ln  1899  was  5,001 ,798  tons  according 
to  the  record  kept  by  the  New  Panama  Canal  Co.  The  tonnage  that  might  have  used  a  canal  to  advantage 
in  1910  was  8,328,029  tons,  the  increase  during  the  11  years  having  been  66^  per  cent,  or  at  the  rate  of  58.96  per 

'See  Appendix  I. 


40  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

cent  per  decade.'  If  the  rate  of  increase  that  prevailed  during  the  decade  ending  in  1910  shall  continue  during 
the  five  year's  ending  in  1914-15,  the  growth  for  the  five  3"ears  will  be  26.08  per  cent,  and  the  tonnage  in  1915 
will  be  10,499,799— practically  10,500,000  tons. 

Is  it  safe  to  assume  this  rate  of  increase  during  the  five  years  ending  in  1915?  This  question  can  best  be 
answered  by  ascertaining  what  the  actual  rate  of  increase  has  been  in  the  commerce  of  the  world  and  of  the 
leading  sections  of  the  world  during  the  past  decade. 

If  it  be  found  that  the  increase  in  the  available  canal  traffic  from  1S99  to  1910  is  no  greater,  or  is  less,  than 
the  rate  of  growth  prevailing  in  the  commerce  of  the  leading  sections  of  the  world,  it  will  presumably  be  safe 
to  conclude  that  the  increase  in  the  available  canal  traffic  of  less  than  60  per  cent  per  decade  during  the  15  years, 
1900-1915,  win  result  in  a  conservative  estimate  of  the  traffic  that  may  advantageously  annually  use  the  Panama 
Canal  during  the  first  years  of  its  operation.  A  study  has  been  made  of  the  increase  in  the  value  (1 )  of  the  foreign 
trade  of  the  22  leading  countries  of  the  world,  (2)  of  the  trade  of  the  United  States  Avith  foreign  countries, 
(3)  of  the  commerce  of  the  United  States  with  non-European  countries,  (4)  of  the  commerce  between  the  Atlantic- 
Gulf  seaboard  of  the  United  States  and  Pacific  countries,  and  (5)  of  the  commerce  between  European  and 
Pacific  countries  and  the  west  coast  of  South  and  North  America.  An  analysis  has  also  been  made  of  the  growth 
in  the  volume  of  traffic  using  the  Suez  Canal.  The  results  of  tliis  study  are  summarized  in  the  foHowing 
paragraphs. 

The  investigation  here  made  of  the  growth  in  the  value  of  international  commerce  is  to  assist  in  deciding 
whether  the  rate  of  increase  in  the  volume  or  tonnage  of  available  canal  traffic  from  1899  to  1910  may  be  pre- 
dicted for  the  five-year  period  ending  in  1915.  Such  bemg  the  problem,  it  becomes  necessary  to  reduce  all 
percentages  of  increase  in  the  value  of  commerce  sufficiently  to  eliminate  the  effect  of  rising  prices  upon 
the  value  of  commerce.  The  effect  of  rising  prices  upon  the  percentages  of  increase  in  commercial  values  can 
be  offset  by  reducing  value  increases  by  the  percentage  that  prices  have  risen  during  the  decade.  The  rise  in 
general  prices  from  1899  to  1910  may  be  computed  from  the  index  numbers  compiled  by  the  London  "Econo- 
mist," by  Sauerbeck,  by  the  United  States  Bureau  of  Labor,  and  by  "  Bradstreet."  Most  of  the  figures  cited  in 
the  following  pages  refer  to  the  decade  1900-1910,  but  masmuch  as  a  few  of  the  figures  are  for  the  10-year  period 
endmg  in  1909,  the  percentages  of  price  increases  for  two  decades,  one  ending  in  1909  and  the  other  ending  in 
1910,  are  stated  in  Table  II. 

'  To  determine  the  rate  of  increase  for  one  or  more  years  when  the  total  percentage  of  increase  for  a  period  of  years  is  known,  the  following  formulas  may  be  used: 

Formula  to  find  rate  per  annum. 

A=p(l+r)» 

A=  amount  after  n  years=  8,328,029 
A      r=  rate  per  annum 

p=amount  at  first  date=  5,001,798 

D=  number  of  years  after  first  date=ll. 

Formula  to  find  amount  in  tenth  year. 

A=pCI+r)» 

.\=amoimt  in  tenth  year 
B     p=amount  in  first  year=5,001,79S 
r=rate  per  annum 
n=  number  of  years  after  first  date=10. 

Formula  to  find  rate  of  increase  for  decade. 

A-p 

■=per  cent  increase 

C    A= amount  in  tenth  year 
'  p=  amount  in  first  year. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  41 

Table  II PERCENTAGES  OF  INCREASE  IN  PRICES  DURING  THE  DECADES  ENDING  IN  1909  AND  IN  1910. 


1899-1909       1900-1910 


EcOTiomiH 

Sauerbeck 

United  States  Bureau  of  Labor 

Bradatreet 

Average  Great  Britain  (Economist  and  Sauerbeck) 

Average  United  States  (Bureau  of  Labor  and  Bradstreet) 
General  average 


Per  cent. 
12.2 
12.6 
24.5 
23.6 


Per  cent. 
13.7 


14.4 
12.6 


12.4 
24.05 
18.2 


13.5 
11.17 


The  relatively  low  prices  of  1899  compared  with  the  high  prices  of  1909  give  a  large  percentage  of  increase 
in  prices  for  that  decade,  particularly  in  the  United  States.  Prices  in  1910  were  not  so  much  above  those  of  1900 
as  were  the  prices  of  1909  in  excess  of  those  prevailing  10  years  earlier;  but  even  during  the  decade  ending  in 
1910  there  was,  particularly  in  the  United  States,  a  relatively  large  increase  in  average  prices.  In  order  to  secure 
a  percentage  wliich  represents  as  nearly  as  possible  the  actual  increase  in  average  prices,  the  mean  has  been  taken 
of  the  percentages  shown  by  the  two  English  price  indexes  and  the  mean  of  the  two  American  price  indexes. 

The  value  of  the  international  commerce  of  the  22  leading  countries  of  the  world  has  increased  58.4  per 
cent  during  the  decade  1900  to  1910.  The  following  table,  compiled  from  the  reports  of  the  United  States 
Bureau  of  Statistics,  shows  the  increase  during  this  decade  in  the  imports  and  exports  of  these  countries. 

Table  III INCREASE  IN  THE  FOREIGN  TRADE  OF  TWENTY-TWO  LEADING  COUNTRIES,  1900-1910.' 


Year. 

Imports. 

Exports. 

Total. 

Per  cent 
increase. 

1900  2 

$9,532,615,165 
15,199,868.105 

$8,485,860,991 
13,357,891,025 

818,018,476,156 
28,557,759.130 

1910 » 

58.4 

'  Argentina,  Australia,  AustriarHungary,  Belgium,  Brazil,  Bulgaria,  Canada,  China,  France,  Germany,  British  India,  Italy,  Japan,  Mexico,  Netherlands,  Norway, 
Bussia,  Spain,  Sweden',  Switzerland,  United  Kingdom,  and  United  States. 

2  Not  including  Brazil. 

3  Including  Mexico,  Netherlands,  and  Sweden  as  in  year  1909. 

The  general  average  of  British  and  American  price  increases  for  the  decade  ending  in  1910  shows  a  rise  in 
average  prices  of  11.17  per  cent;  accordingly,  the  increase  in  the  volume  of  the  commerce  of  the  22  countries 
included  in  the  preceding  table  was  presumably  but  88. 8.3  per  cent  of  58.4  per  cent,  or  51.9  per  cent.  This 
rate  of  increase  applies  to  the  commerce  of  practically  all  important  commercial  countries  and  includes  the  trade 
of  the  older  sections  of  the  world,  where  the  rate  of  growth  is  relatively  slow,  as  well  as  of  the  newer  parts  of  the 
world,  where  the  increase  in  commerce  is  relatively  rapid.  For  this  reason  the  rate  of  mcrease  ought  to  be  less 
than  that  of  the  available  commerce  of  the  Panama  Canal,  which  will  be  used  by  the  commerce  of  the  Pacific  coun- 
tries, whose  trade  is  growing  at  a  relatively  rapid  rate. 

The  total  foreign  trade  of  the  Unitetl  States  increased  47.1  per  cent  in  value  during  the  decade  ending  in 
1910.  To  eliminate  the  effect  of  the  rise  in  prices,  this  rate  should  be  decreased  13J  per  cent,  or  to  40.7  per  cent. 
The  foreign  commerce  of  the  United  States  during  the  decade  ending  June  30,  1911,  mcreased  54.9  per  cent  in 
value.     After  reducing  this  13J  per  cent,  the  increase  representing  the  presumable  growth  in  volume  of  trade 


42 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


becomes  47.4  per  cent.     The  following  chart  shows  graphically  the  increase  in  the  value  of  the  imports  and 
exports  and  total  foreign  commerce  of  the  United  States  from  1900  to  1911: 


4000 


3500 


3000 


2500 


2000 


1500 


1000 


500 


Chart  A.  Fore/gn  Trade:  of  United  States,    / 90 0-/9/ I. 

//7  /Hi/ /ions  of  Do//an5. 


^ 

^ 

^ 

y 

^o^<y 

^^ 

y 

^^--^ 

^ 

,r/' 

,    ^^ 

-~ 

^ 

£^ 

^^^^ 

/ 

_________ 

^^~~~^ 



-- 

.^nd 

5^^ 

^ 

^^. 

\rn0> 

^ 

^ 

_^ 

-^^ 

Year 

Imports 

Exporls 

Total 

1900 
1910 
1911 

849.941.184 
J.5S6.947.43? 
ISZ7.226./OS 

1.394.483082 
1.744  984.720 
2049.320,199 

2.24d.4?4.?66 
3.301.93?. ISO 
3576S46.304 

The  only  commerce  which  the  United  States  will  have  via  the  Panama  Canal  with  European  countries  will 
be  that  between  the  Pacific  coast  of  the  United  States  and  Europe.  For  this  reason,  the  increase  in  trade  of 
the  United  States  with  non-European  countries  is  more  indicative  of  the  probable  growth  m  the  available  canal 
traffic  than  is  the  growth  in  the  total  foreign  commerce  of  our  country.  The  value  of  the  commerce  of  the 
United  States  with  non-European  countries  rose  from  $763,689,189  in  1900  to  $1,359,747,319  in  1910,  the  growth 
having  been  78  per  cent.  This  percentage  reduced  by  \2,\  per  cent,  to  elimuiate  the  effect  of  advance  m  prices 
in  the  Unitetl  States,  leaves  a  net  growth  in  the  commerce  of  the  United  States  with  non-European  countries  of 
67J  per  cent  during  the  10  years  ending  in  1910.  This  is  an  appreciably  higher  rate  of  mcrease  than  is  predicted 
for  the  available  Panama  Canal  traffic  for  the  decade  preceding  1915.  A  stiU  closer  indication  of  the  probable 
rate  of  increase  in  available  canal  traffic  is  the  growth  in  the  commerce  between  the  Altantic-Gulf  seaboard  of 
the  United  States  and  Pacific  countries,  American  and  Asiatic.  The  growth  in  this  trade  by  imports  and  exports 
and  by  Pacific  countries  is  shown  in  detail  in  Table  IV. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


43 


Table  IV.— TRADE  OF  ATLANTIC  AND  GULF  PORTS  OF  UNITED  STATES  WITH  WESTERN  SOUTH  AND  CENTRAL 
AMERICA,  BRITISH   COLUMBIA,  AND   PACIFIC  COUNTRIES   EAST   OF   SINGAPORE.' 


Imports. 


Exports. 


Imports. 


Exports. 


Per  cent  in- 
crease 1910 
over  1900. 


Western  South  America: 

Bolivia 

Chile 

Ecuador 

Peru 

Salvador. 

British  Columbia 

Hawaii 

Orient  (east  of  Singapore): 

Leased  China 

Korea 

Hongkong 

Japan 

Asiatic  Russia 

Phihppines 

Oceania: 

Australia  and  Tasmania. 

New  Zealand 

Other  foreign  Oceania. . . 
Total 


22 

i,  271, 078 
,336,224 
1,122,543 
247,633 
94,914 
1,591,415 


951,032 

8,697,449 

230 

5,385,078 

4,712,022 
(<) 
43,972 


59,223 
2,873,063 
1,048,367 
1,441,586 
376,025 
5,630 
1,493,793 

12,367,357 
256,484 
4,174 
2,518,247 
15,969,694 
2,379,887 


23,018,716 
11,433 


59,245 
9, 144, 141 
2,384,591 
3,564,129 
623,658 
100,544 
11,085,208 

23,400,501 
256,484 
4,279 
3,469,279 
24,667,143 
2,380,117 
6,093,962 

27, 730, 738 
(') 
55,405 


16,841,788 
2,049,120 
7,128,595 
93,700 
5  208,957 
24,029,997 

17,671,079 

1,268,602 

2,777 

1,614,811 

14,181,303 
1,075,535 

12,910,296 

13,633,048 

3,992,593 

133,025 


590,481 
7,552,423 
1,956,602 
3,039,976 
808,278 
490, 118 
3,683,174 

13,600,922 

532, 102 

316,407 

1,614,199 

9,483,811 

545,320 

8,869,930 

24,004,591 

4,912,693 

82,001 


590,670 
24,394,211 
4,005,722 
10, 168, 571 
901,978 
699,075 
27, 713, 171 

31,272,001 

1,800,704 

319, 184 

3,229,010 

23,665,114 
1,620,855 

21,780,226 

37,637,039 

8,905,180 

215,026 


897.0 
166.7 

68.0 
185.5 

44.5 
596.6 


33.6 
603.1 
7,497.0 
'7.4 
S4.2 
«46.2 
257.4 


67.8 
288.0 


50,486,861 


64,532,563 


115,019,424 


116,835,415 


82,082,928 


198,918,343 


1  Not  including  Alaska,  western  Mexico,  western  Central  America  except  Salvador,  and  Pacific  coast  of  United  States. 

'  Not  accounting  for  S27,456,  which  is  not  distributed  by  ports. 

8  Decline. 

<  Included  under  Australia. 

The  value  of  the  commerce  between  the  Atlantic-Gulf  ports  of  the  United  States  and  the  countries  on  both 
sides  of  the  Pacific  rose  72.9  per  cent  during  the  10  years  ending  in  1910.  To  indicate  the  increase  in  volume  of 
trade,  this  percentage  should  be  reduced  13J  per  cent,  or  to  63.1  per  cent.  This  again  is  a  higher  rate  of  growth 
than  is  credited  to  the  available  canal  traffic  prior  to  the  opening  of  the  canal.  The  details  presented  in  Table 
IV  are  especially  instructive.  The  commerce  between  the  eastern  part  of  the  United  States  and  the  west  coast 
of  South  America,  as  a  whole,  advanced  158.4  per  cent  in  value  during  the  decade ;  this  rate,  decreased  by  13§  per 
cent,  becomes  137  per  cent.  The  commerce  of  our  eastern  seaboard  with  Hawaii  increased  150  per  cent  in  value; 
the  trade  with  the  Philippines,  257.4  per  cent,  with  Australia  and  New  Zealand,  67.8  jier  cent;  and  with  other 
parts  of  Oceania,  288  per  cent. 

The  growth  in  the  value  of  the  commerce  between  Europe  and  Pacific  countries,  other  than  British  Co- 
lumbia, during  the  decade  1900—1910  is  shown  by  the  following  table: 

Table  V.— INCREASE  IN  EUROPEAN  TRADE  WITH  PACIFIC  COUNTRIES  EAST  OF  SINGAPORE,  1900-1910. 


Year.                            . 

Imports. 

Exports. 

Total. 

Per  cent 
increase. 

1899-1900 

$508,309,000 
756,536,000 

1297,118,000 
468,695,000 

$805,427,000 
1,225,231,000 

1909-1910        

52.1 

34998°— 12- 


44 


PANAIIA  CANAL  TKAFFIC  AND  TOLLS. 


In  spite  of  the  large  value  of  the  trade  of  Europe  with  Pacific  countries  in  1900,  the  percentage  of  increase 
durin'T  the  decade  ending  in  1910  was  52.1  per  cent.  To  offset  the  effect  of  rise  in  prices,  this  rate  of  increase  has 
been  reduced  12.9  per  cent,  or  to  45.4  per  cent.  It  was  thought  that  the  mean  between  the  increase  in  British 
prices,  1899-1909,  and  the  increase  in  American  prices  from  1900-1910 — 12.9  per  cent — should  be  taken  as  the 
factor  to  be  applied  in  offsettmg  the  effect  of  the  rise  in  prices  in  the  commodities  composing  the  trade  of 
Europe  -svith  the  two  sides  of  the  Pacific. 

The  traffic  of  the  Suez  Canal  rose  from  9,738,152  tons,  net  register,  in  1900,  to  16,581,898  net  tons  in 
1910,  the  increase  for  the  decade  being  70.26  per  cent.  During  the  year  1911,  the  traffic  of  the  Suez  Canal 
amounted  to  18,324,794  net  tons,  the  growth  for  the  decade  ending  in  1911  having  been  69.3  per  cent.  A  striking 
fact  regarding  the  Suez  traffic  is  the  continued  high  rate  of  growth  in  spite  of  the  large  total  tormage  already 
attained.  The  Suez  Canal  is  used  largely  not  only  by  the  commerce  of  Europe  but  by  the  trade  of  the  eastern 
seaboard  of  the  United  States  with  the  countries  of  southern  and  eastern  Asia,  with  the  East  Indies,  and  with 
Australasia.  This  traffic  thus  includes  the  sliipping  employed  in  a  large  share  of  the  world's  trade.  The 
traffic  of  the  Suez  Canal  is  diversified  and  stable,  and  its  growth  represents  the  normal  increase  of  a  large  part 
of  the  world's  international  trade.  The  increase  in  the  net  tonnage  of  the  Suez  Canal  is  graphically  shown  by 
the  f ollo^ving  chart : 


Chart  B.  Net  Tonn/ise  of  Suez  Canal  ISOO-1911. 


Met  Tons 
/8,000,OQO 

n.ooaooo 

16,000,000 
15,000.000 
14,000.000 
15,000,000 
12.000.000 
11,000,000 
10,000,000 


3,000,000   "■ 


/ 

/ 

/ 

/ 

/ 

^ 

\ 

/ 

\ 

/ 

\ 

/ 

^^^ 

/ 

' 

/ 



/ 

Year 

Net  Tons 

°/o  Increase 
over  1900 

/ 

1900 
1905 
/9I0 
/9/I 

9. 738./ 52 
/3. 134, 105 
16.581898 
18. 324794 

34  8 
70.26 
88.17 

/ 

^ 

/ 

/ 

1900       1901  1902        1903  1904         1905        1906         1907         1908         1909         1910         1911 


The  details  in  the  foregoing  discussion  of  the  increase  in  the  value  of  the  commerce  of  the  world,  the 
United  States,  Europe,  and  the  Suez  Canal,  may  be  summarized  in  the  following  tabular  form. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Table  VI — PERCENTAGES  OF  INCREASE  IN  THE  VALUE  OF  COMMERCE,  1900-1910. 


45 


Commerce  of — 


Twenty-two  leading  countries , 

United  States  with  foreign  countries 

United  States  with  non-European  countries 

Atlantio-Gulf  seaboard  of  the  United  States  with  Pacific  coontries. 

Europe  with  Pacific  countries , 

Suez  Canal 


Percentage  of 
increase  after 
reduction  to 
offset  rise  in 
prices. 


51.9 
40.7 

67.5 
63.1 
45.4 
170.26 


In  tonnage. 

Most  of  the  details  presented  in  Table  VI  are  represented  giapliically  in  the  f oUo%ving  chart : 


Dollars 
1.400.000000 

1.200.000.000 

J.000.D0O.OO0 

800,000,000 

600,000.000 

400.000,000 

200,000.000 


Chart  C 


78% 


52.1% 


72.9°/, 


A     Trade  of  Europe  with  Pacific  coun  fries. 
B    Trade  of  United  States  with  Foreign 

Pacific  countries. 
C     Trade  of  United  Slates  with  non- European 

countries. 
D    Net  tonnage  of  Suez  Canal. 
E    Nel  tonnage  aval  table  fo  Panama  Canal  in 

1898-9  and  1909- fO  and  probable  -fonn^jge 

in  /  9 14 -15. 

.Net ton 5   ^^-^^y- 

16,581,898 
-10,000,000- 


1899  1909  1900  1910   t900  1910 
/900  J9/0 

ABC 


It  is  beUeved  that  the  facts  presented  in  the  foregoing  discussion  and  summarized  in  Table  VI  and  in  Chart  C 
indicate  that  the  increase  of  58.96  per  cent  in  available  canal  traffic  during  the  decade  ending  in  1910  does  not  err 
on  the  side  of  overstatement,  and  that  a  continuance  of  that  rate  of  growth  in  the  available  canal  tonnage  may 
conservatively  be  predicted  for  the  five-year  period  ending  in  1915.  It  is,  of  course,  possible  that  a  period  of 
business  depression  may  precede  1915;  however,  the  economic  conditions  prevaihng  in  1912  give  no  indication 
of  an  early  decline  in  business  activity.  Indeed,  the  United  States  and  the  world  at  large  is  still  slowly  over- 
coming the  effect  of  business  interruption  during  the  years  1907-1909.     The  world  is  apparently  still  within  the 


46  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

first  half  of  a  period  of  general  business  expansion.  Unless  some  entirely  improbable  event  occurs,  prosperity 
may  not  be  expected  to  give  way  to  general  business  depression  for  some  years  to  come. 

The  facts  presented  in  this  chapter  indicate  an  available  Panama  Canal  traffic  in  1914-15  of  10,500,000  tons, 
net  register.  It  is  however,  not  probable  that  this  entire  tonnage  wiU  immediately  abandon  present  routes 
upon  the  opening  of  the  canal;  a  period  of  possibly  two  years  may  be  required  by  merchants  and  carriers  to 
arrange  for  doing  business  by  the  canal  route;  the  transfer  of  traffic  to  the  canal  route,  however,  -mil  be  accom- 
plished in  a  comparatively  short  time.  Steamsliip  companies  are  already  laying  their  plans;  terminal  facihties 
are  being  sought;  sliips  are  being  constructed;  and  arrangements  with  rail  carriers  are  being  made. 

The  Suez  Canal  traffic  increased  slowly  during  the  first  five  years,  because  the  traffic  between  Europe  and 
the  East  was  handled  almost  entirely  in  saUing  vessels  at  the  time  of  the  opening  of  the  Suez  Canal.  Steamers 
had  to  be  built  to  use  the  canal.  The  total  tonnage  of  steamers  in  1869  was  relatively  small;  to-day  the 
situation  is  different,  most  of  the  world's  seagoing  fleet  consisting  of  steamers.  The  Panama  Canal  will  not  have 
to  wait  for  sliips  to  be  budt  to  handle  its  available  traffic. 

The  increase  in  the  available  Panama  Canal  traffic  up  to  1915  wiU  be  at  the  rate  of  about  60  per  cent  per 
decade.  How  rapidly  the  traffic  of  the  canal  ^\•ill  increase  after  the  waterway  has  been  put  in  operation  can, 
of  course,  merely  be  conjectured.  The  assumption  of  an  increase  of  60  per  cent  during  the  first  decade,  from 
1915  to  1925,  would  unquestionably  be  conservative,  because  such  an  estimate  would  assume  merely  the  con- 
tinuance of  the  rate  that  has  prevailed  during  the  15  years  preceding  the  opening  of  the  canal.  The  Panama 
Canal  will  unquestionably  stimulate  and  accelerate  the  growth  of  the  commerce  it  serves,  particularly  the  trade 
between  the  two  seaboards  of  the  United  States  and  between  the  eastern  part  of  the  United  States  and  South 
America.  The  influence  of  the  canal  upon  the  commerce  between  Europe  and  the  west  coast  of  the  United 
States,  and  between  Europe  and  western  South  America,  can  hardly  fail  to  be  important. 

It  is  probable  that  the  traffic  of  the  canal  will  advance  more  than  60  per  cent  between  1915  and  1925.  If, 
however,  it  be  assumed  that  the  growth  will  be  but  60  per  cent  during  this  decade,  the  traffic  of  the  Panama 
Canal  will  reach  17,000,000  tons,  net  register,  m  1925.  Tliis  figure  may  seem  large  but  it  will  be  small  in  com- 
parison with  the  traffic  which  the  Suez  Canal  vnM  have  secured  by  1925.  Indeed,  the  traffic  of  the  Suez  Canal 
in  1915  will  be  considerably  in  excess  of  20,000,000  tons,  net  register,  and  unless  the  traffic  of  that  waterway 
should  increase  at  a  much  slower  pace  than  it  is  now  advancing,  the  tonnage  passing  the  Suez  Canal  in  1925 
will  be  nearly  double  17,000,000  net  tons. 


CHAPTER   IV. 


THE  RELATION  OF  THE  PANAMA  CANAL  TO  THE  TRAFFIC 
AND  RATES  OF  AMERICAN  RAILROADS. 


CHAPTER  IV. 
THE  RELATION  OF  THE   PANAMA   CANAL   TO  THE  TRAFFIC  AND   RATES  OF  AMERICAN  RAILROADS. 


INTBODUCTION. 

Since  the  opening  of  the  first  railway  to  the  Pacific,  in  1869,  shippers  have  had  the  choice  of  rail  and  water 
routes  for  the  transportation  of  their  freiglit  from  coast  to  coast,  and,  in  spite  of  artificial  restraints  upon  the 
competition  of  the  water  routes  with  the  transcontinental  railroads,  the  rates  by  rail  between  the  two  seaboards 
have  been  affected  by  those  charged  by  the  carriers  by  water.  The  Panama  Canal  will  shorten  and  improve 
the  intercoastal  water  route  and  will  greatly  increase  the  influence  which  the  coastwise  lines  will  be  able  to  exert 
upon  the  railroad  services  and  rates.  The  volume  of  traffic  moving  coastwise  will  be  greatly  enlarged  by  the 
canal.  Some  goods  now  handled  all-rail  will  move  by  water  or  by  rail  and  water  lines,  and  there  will  neces- 
sarily follow  a  modification  of  rail  rates  and  a  readjustment  of  the  relation  of  the  charges  of  rail  and  water  lines. 

What  the  actual  freight  rates  between  the  Atlantic  and  Pacific  seaboards  will  be,  by  rail  and  water  lines, 
after  the  opening  of  the  Panama  Canal,  and  what  shares  of  the  total  traffic  will  mo^^e  coastwise  and  by  rail, 
can  not  be  predicted  in  advance ;  but  inasmuch  as  the  division  of  intercoastal  traffic  between  the  water  and  raU 
carriers  and  the  rates  charged  by  the  competing  ocean  and  raU  routes  may  be  affected  by  the  tolls  charged  for 
the  use  of  the  Panama  Canal,  it  is  desirable  that  before  fixing  the  tolls  as  complete  information  as  it  is  practicable 
to  secure  should  be  obtained  concerning  the  existing  traffic  and  rates  of  both  the  water  and  the  rail  lines  con- 
necting our  two  seaboards.     Accordingly,  it  is  the  purpose  of  this  chapter: 

(1)  To  state  the  volume  and  explain  the  nature  of  the  traffic  now  carried  by  water  routes  between  the 
two  seaboards;  (2)  to  present  the  available  information  concerning  the  tonnage  and  character  of  the  trans- 
continental railroad  traffic;  (3)  to  compare  present  coast-to-coast  rates  by  rail  and  water  carriers;  (4)  to  explain 
the  rates  now  prevailing  at  inland  points  in  the  eastern  and  western  sections  of  the  United  States  on  trans- 
continental traffic  that  is  carried  by  combined  rail  and  ocean  routes,  and  to  state  what  the  railroads  have  done 
to  retain  and  develop  the  direct  all-rail  movement  of  traffic  between  the  eastern  and  western  portions  of  the 
United  States;  (5)  to  indicate  in  general  terms  how  the  railroads  may  be  expected  to  adjust  rates  so  as  to 
enable  the  Middle  West  to  continue  to  compete  successfully  with  the  Eastern  States  in  the  markets  and  for  the 
trade  of  the  Pacific  Coast  and  Rocky  ^Mountain  States ;  and  (6)  to  summarize  the  probable  effects  of  the  Panama 
Canal  upon  transcontinental  traffic  and  rates. 

It  is  well  known  that  only  partial  information  regarding  the  traffic  by  rail  between  the  eastern  and  western 
sections  of  the  United  States  is  obtainable,  but  enough  facts  are  known  as  to  the  total  transcontinental  rail 
tonnage  and  as  to  the  seaboard  and  inland  origin  and  destination  of  that  tonnage  to  give  some  indication  of 
the  probable  effects  of  the  Panama  Canal  upon  the  traffic  and  upon  the  rate  policies  of  the  eastern,  southern, 
and  transcontinental  railroads.  It  will  be  possible  to  present  in  sufficient  detail  the  traffic  and  rates  of  the 
coast-to-coast  carriers  by  water  and  to  compare  the  present  intercoastal  rates  by  water  and  rail  lines.  It  wiU 
be  understood  that  the  conclusions  as  to  the  efl'ects  which  the  Panama  Canal  will  have  upon  the  transcontinental 
traffic  and  rates  of  the  railroads  must  be  only  tentative. 

I.  RotTTE.s  AND  Traffic  by  Water  Between  the  Atlantic  and  Pacific  Seaboards  of  the  United  States. 

Sliipments  between  the  two  seaboards  of  the  United  States  may  move  by  tliree  water  routes  that  compete 
with  tlie  rail  lines  connecting  the  two  coasts,  (1)  the  all-water  route  around  South  America  via  Cape  Horn  for 
sailing  vessels  and  tlirough  the  Straits  of  Magellan  for  steamers;  (2)  the  route  b}'  way  of  Panama  with  the  trans- 
fer of  traffic  by  rail  across  the  Isthmus;  and  (3)  the  route  via  the  Isthmus  of  Tehuantepec,  across  which,  from 
Puerto  Mexico  on  the  Gulf  to  SaUna  Cruz  on  the  Pacific,  freight  is  handled  by  a  railroad  owned  by  the  Mexican 
Government.     Plate  3,  in  the  pocket  at  the  end  of  this  report,  charts  these  routes. 

49 


50 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


TraflBc  carried  by  rail  lines  between  the  Atlantic  and  Pacific  seaboards  may  move  coastwise  for  a  short 
distance  on  each  seaboard — as  from  New  York  to  Norfolk  or  from  Portland,  Oreg.,  to  San  Francisco  at  the  begin- 
ning or  end  of  the  railroad  haul  across  the  continent.  The  only  railroad  controlling  a  tlirough  route  between 
the  Atlantic  and  Pacific  seaboards  is  the  Southern  Pacific,  which  operates  the  Morgan  Line  of  steamers  between 
New  York  and  New  Orleans  and  Galveston.  The  steamers  of  the  ^Morgan  Line  extend  the  Southern  Pacific 
route  from  the  Gulf  termini  of  the  railroad  to  New  York,  and  thus  enable  the  Southern  Pacific  to  compete  both 
with  the  other  transcontinental  railroads  and  with  the  intercoastal  water  routes  around  South  America  and 
across  the  Isthmuses  of  Panama  and  Tehuantepec.  This  combined  rail  and  water  line  of  the  Southern  Pacific 
is  called  the  "Sunset-Gulf  Route." 

1.  The  oldest  route  between  the  two  seaboards  of  the  United  States  is  the  one  taken  by  sailing  vessels 
around  Cape  Horn.  Prior  to  1849,  however,  only  an  occasional  vessel,  which  was  in  most  instances  a  whaler, 
undertook  the  voyage  between  the  Atlantic  and  Pacific,  but  with  the  discovery  of  gold  at  the  close  of  1848,  and 
for  a  few  years  thereafter,  there  was  a  very  large  use  of  this  route.  In  1849,  775  vessels  cleared  from  the  Atlantic 
seaboard  for  San  Francisco  and  all  but  12  of  them  were  sailing  vessels.  The  opening  of  the  Panama  Railroad 
early  in  1855  caused  most  of  the  traffic  between  the  seaboards  to  abandon  the  long  route  around  South  America, 
but  a  considerable  number  of  sailing  vessels  were  annually  dispatched  between  the  two  seaboards  by  way  of 
Cape  Horn,  and  a  small  amount  of  steam  tonnage  made  use  of  the  Magellan  route. 

The  superiority  of  steamers  over  sailing  vessels  for  handling  most  classes  of  freight,  even  for  such  a  long 
route  as  that  between  the  two  seaboards  of  the  United  States  around  South  America,  became  evident  during 
the  1890's  and  caused  the  company  wliich  was  then  operating  the  principal  line  of  sailing  vessels  between  our 
two  seaboards  by  way  of  Cape  Horn  to  sell  its  sailing  vessels  and  to  inaugurate,  in  1899,  the  American-Hawaiian 
line  of  steamers  run  by  way  of  the  Straits  of  Magellan.  Early  in  1907  the  American-Hawaiian  line  shifted  to 
the  route  via  the  Isthmus  of  Tehuantepec,  and  since  that  date"  practically  all  of  the  shipping  moving  between 
our  two  seaboards  around  South  America  has  consisted  of  chartered  sailing  vessels  and  steamers  that  handle 
such  bulky  cargoes  as  can  be  economically  shipped  by  that  circuitous  route.  Table  I  shows  the  approximate 
tonnage  of  freight  handled  between  our  two  seaboards  via  Cape  Horn  and  the  Straits  of  Magellan  and  by  way 
of  other  routes  during  the  siix  j^ears  from  1906  to  1911,  inclusive.  It  will  be  seen  that  there  was  a  sudden 
decline  in  the  tonnage  via  Cape  Horn  and  Magellan  after  the  withdrawal  of  the  American-Hawaiian  line  from 
the  Magellan  route,  and  that  the  volume  of  tonnage  around  South  America  has  fluctuated  largely  during  recent 
years. 

Table  I VOLUME  OF  INTERCOASTAL  WATER  TRAFFIC,  1906-1911. 

[Tons  of  freight.] 


Total  coastwise  traffic  of 
Panama  Railroad.' 

Coastwise  trafDc  of  Pana- 
ma   Railroad    Steam- 
ship Line.2 

Coastwise  traffic  of  Pacific 
MaU.2 

California-Atlantic  Steamship 
Line  (Pacific  service).^ 

California-Atlantic  Steamship  Line 
(Atlantic  service).^ 

Years. 

.\tlantic 

to 
Pacific. 

Pacific 

to 

-\.tlantic. 

Total. 

New 
Yorlc 

to 
Colon. 

Colon 
to  New 
Yorli. 

Total. 

Atlantic 

to 
Pacific. 

Pacific 

to 

.Atlantic. 

Total. 

Atlantic 

to 
Pacific. 

Pacific 

to 

-Atlantic. 

Total. 

Phila- 
delphia 

to 
Colon. 

Colon 

to 
Phila- 
delphia. 

New 
Orleans 

to 
Colon. 

Colon 

to 

New 

Orleans. 

Total. 

25,914 
26,944 
23,258 
38,095 
48,394 
96, 420 

24,937 
15,285 
IS, 162 

8,728 
33,482 
115,508 

50,851 
42,229 
38,420 
46,823 
79, 876 
211,928 

25,866 
26,859 
23, 131 
37,910 
46,394 
66,922 

24,937 
15,285 
15, 132 
8,700 
33,482 
105,577 

50,803 
42,144 
38,263 
46,610 
79,876 
172,499 

25,866 
26,859 
23,131 
37,910 
46,394 
29,080 

24,937 
15,285 
15, 132 
8,700 
33,482 
47,892 

50,803 
42,144 
38,263 
46,610 
79, 876 
76, 972 

1911 

67,332 

67,213 

134,545 

28,  488 

5,487 

1,002 

4,041 

39,018 

1  Annual  Reports  of  Panama  Railroad  Co. 


2  Statement  of  E.  A.  Drake,  vice  president  Panama  Railroad  Co. 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 


51 


Table  I. 


-VOLUME  OF  INTERCOASTAL  WATER  TRAFFIC,  1906-1911— Continued. 
[Tons  ol  freight.] 


American-Hawaiian  SteamsMp  Line.' 

Tonnage  via  Cape  Horn  and  Straits  of  Magellan  .2 

Total  line 

traffic 

(excluding 

Hawaiian 

sugar).' 

Total 
tramp- 
vessel 
traffic.6 

Total 

water 

traffic 

(excluding 

sugar).  6 

Years. 

New  York 

to  Pacific 

ports. 

Pacific 

ports  to 

New  York. 

Hawaiian 
sugar. 

Total 

(excluding 

Hawaiian 

sugar). 

Vessel  tonnage  (entrances  plus 
clearances). 

Approxi- 
mate 
freight 
carried.3 

Total 
water 
traffic 
(including 
Hawaiian 
sugar). 

Atlantic 
to  Pacific. 

Pacific  to 
Atlantic. 

Total. 

1906 

IW.fOO 
131,900 
117,200 
229,200 
247,100 

32,000 
14,000 
27,000 
83,200 

91,700 
198,300 
242,700 
248,100 

146,900 
145,900 
144,200 
312,400 

169,787 
191,432 
159,725 
52,873 
117,147 
117,007 

140,243 
82,343 
56,182 
32,821 

55,508 
40,601 

310,030 
273,775 
215,907 
85,694 
172,655 
157,608 

271,276 
239,653 
188,918 
74,982 
151,073 
137,907 

197,703 
188,044 
182,463 
359,010 
386,576 
669,817 

271,324 
239,638 
89,075 
75, 195 
151,073 
138,318 

469,027 
427,682 
371,538 
434,205 
537,649 
808, 135 

1907 

1908 

1909 

1910 

1911 

'  statement  of  .Vmerican-Hawaiian  Steamship  Co. 

'U.  S.  Commerce  and  Navigation  Reports,  1906-1911. 

'  Assuming  1}  tons  of  freight  for  1  net  vessel  ton,  and  dividing  by  2,  as  In  the  vessel  toimage  each  ship  is  counted  twice— once  as  an  entrance  and  once  as  a  clearance. 

<  Traflic  of  Panama  Railroad  Steamship  Line,  Pacific  Mail,  CaUfomia-Atlantic,  and  .\merican-nawaiian  Line. 

'  Total  water  traffic  less  total  line  traffic. 

« Coastwise  Panama  Railroad  traffic  plus  .Vmerican-Hawaiian  traffic  plus  traffic  via  Horn  and  Magellan. 

2.  The  Panama  route  between  our  two  seaboards  was  opened  for  traffic  at  the  close  of  1S4S,  at  the  time  of 
the  rush  to  the  California  gold  fields.  With  the  completion  of  the  railroad  from  Colon  to  Panama,  early  in  1855, 
most  of  the  traffic  between  our  two  seaboards  moved  by  wa}"  of  Panama;  and  this  continued  to  be  the  principal 
highway  for  transcontinental  traffic  until  1869,  when  the  comiection  of  the  Missouri  River  with  the  Pacific  coast 
by  the  Union  and  Central  Pacific  Railroads  established  the  first  rail  line  across  the  United  States.  The  traffic 
by  way  of  Panama  rapidly  fell  oft'  after  1869;  and,  though  varjnng  from  year  to  year,  remained  comparatively 
small  until  1911,  when  there  was  a  sudden  increase  in  the  volume  of  traffic  by  water  between  our  two  seaboards. 

Several  causes  account  for  the  relative  unimportance  of  the  Panama  route  since  1869.  The  transconti- 
nental railroads,  until  recently,  have  maintained  a  relentless  competitive  warfare  against  the  Panama  route. 
The  through  rail  rates  between  the  Atlantic  and  Pacific  seaboards  are  lower  than  the  rates  for  shorter  hauls  to 
and  from  the  intermediate  points  m  the  Rocky  Mountain  territory;  and,  until  the  Government  regidation  of 
railroads  became  effective,  the  railroad  companies  quoted  shippers  such  rates  as  were  necessary  to  keep  traffic 
from  taking  the  Panama  route.  Moreover,  the  transcontinental  railroads  were  able  to  restrict  the  use  of  the 
Panama  route  through  their  close  relations  \Yith  the  Pacific  ^lail  Steamship  Co.,  which  has,  for  most  of  the  time, 
been  the  only  regular  line  between  the  west-coast  ports  of  the  United  States  and  Panama.  For  a  period  of  20 
years,  ending  in  1893,  the  railroads,  through  the  Transcontinental  Association,  paid  the  Pacific  Mail  Steamship 
Co.  a  fixed  monthly  sum,  or  rental,  for  the  freight  space  available  in  its  steamers,  and  thus  completely  con- 
trolled the  Pacific  Mail  as  a  competitor.  From  1900  to  the  present,  the  Southern  Pacific  Co.  has  owned  a  major- 
ity of  the  stock  of  the  Pacific  Mail  Steamship  Co.  The  history  of  the  relations  of  the  Pacific  Mail  to  the  trans- 
continental railroads  and  to  the  Panama  Railroad  need  not  be  presented  in  tliis  account  of  the  traffic  and  rates 
by  the  various  routes  connecting  the  two  seaboards  of  the  United  States."  It  is  sufficient  to  state  that  the 
transcontinental  railroads  by  active  competition  and  by  artificial  restraint  have,  until  recently,  kept  the  traffic 
via  the  Panama  route  comparatively  small. 

The  development  of  traffic  via  Panama  has  been  hampered,  not  only  by  the  competition  and  restraint  of 
the  transcontinental  railroads,  but  also  by  two  other  causes.  While  the  French  company  was  eno'aced  in 
construction  work  on  the  Isthmus  from  1882  to  1889,  the  use  of  the  Panama  Railroad  by  commercial  freic^ht 
was  restricted  by  employment  of  the  railroad  for  the  transportation  of  materials  and  supplies  used  in  construc- 
tion work.     Likewdse,  since  1904,  the  construction  of  the  canal  has  limited  the  volume  of  commercial  freight 

1  For  the  history  of  the  relations  of  the  Panama  Railroad  to  the  Pacific  Mail  Steamship  Co.  and  for  an  accoimt  of  the  connection  of  the  Pacific  Mail  with  the  transcon- 
tinental railroads,  the  following  references  may  profitably  be  consulted: 

(1)  Opinion  of  the  Interstate  Commerce  Commission  in  Railroad  Commission  of  Nevada  !■.  Southern  Pacific  Company  et  al.  (June  22, 1911),  21 1.  C.  C.  Reports,  329-384. 

(2)  Statement  by  Edward  A.  Drake,  vice  president  Panama  Railroad,  to  the  Committee  on  Interoceanic  Canals,  United  States  Senate,  Feb.  11, 1910. 

(3)  Report  of  Joseph  L.  Bristow,  special  Panama  Railroad  commissioner,  to  the  Secretary  of  War,  June  24, 1905,  upon  the  Pohcy  to  be  Pursued  in  Management  of  the 
Panama  Railroad  Co.  (Government  Printing  Office,  Washington);  also  report  of  Jan.  20,  1908,  on  the  .\dvisabiUty  of  the  Establishment  of  a  Pacific  Steamship  Line  by  the 
Isthmian  Canal  Commission  (S.  Doc.  No.  409,  62d  Cong.,  2d  sess.). 

(4)  Statement  by  R .  P.  Schwerin,  vice  president  and  general  manager  Pacific  Mail  Steamship  Co.,  to  the  Committee  on  Interoceanic  Canals,  United  States  Senate  on 
Senate  bill  428,  Mar.  10, 1910.    Also  statement  by  Mr.  Schwerin  before  same  committee,  on  House  bill  21909,  Mar.  1,  2,  and  3, 1912. 

(5)  Statement  by  Wilham  R.  Wheeler,  representative  of  San  Francisco  Chamber  of  Commerce,  to  Senate  Committee  on  Interoceanic  Canals,  on  House  bill  21969  Mav 
27, 1912. 


52  PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 

that  could  be  handled  across  the  Isthmus.  The  other  cause  that  has  checked  the  growth  of  traffic  via  Panama 
has  been  the  competition  of  the  Tehuantepec  route,  which,  since  the  beginning  of  1907,  has  afforded  a  shorter 
and  better  transportation  route  than  the  one  hy  way  of  Panama  for  the  traffic  between  the  two  seaboards 
of  the  United  States.  The  volume  of  traffic  handled  via  Panama  between  our  two  seaboards  during  recent 
years  is  shown  in  Table  I.     For  several  j^ears  preceding  1910  the  tonnage  was  small  and  tended  to  decline. 

3.  The  Tehuantepec  route  was  opened  for  traffic  early  in  1907,  when  the  American-Hawaiian  Steamship  Co. 
took  its  steamers  off  the  route  via  the  Straits  of  Magellan  and  established  regular  line  services  on  the  Atlantic 
between  New  York  and  Puerto  Mexico  and  on  the  Pacific  between  Salina  Cruz  and  Hawaii  and  the  west-coast 
ports  of  the  United  States.  In  1906  it  made  an  agreement  with  the  Tehuantepec  National  Railway,  which  is 
owned  by  the  Mexican  Government,  stipulating  that  the  railway  company  should  receive  one-third  of  the  through 
rate.  This  agreement  also  included  a  guaranty  on  the  part  of  the  Tehuantepec  National  Railway  that  the 
net  earnings  of  the  steamship  company,  per  sliip  ton,  should  not  be  less  than  the  earnings  had  been  in  1904, 
when  the  steamship  company  was  operating  by  waj^  of  the  Straits  of  Magellan.  This  guaranty,  however,  did 
not  require  the  Tehuantepec  National  Railway  to  reduce  its  share  of  the  gross  receipts  of  the  steamship  company 
to  less  than  25  per  cent.  The  American-Hawaiian  line  has  been  very  successful.  The  fleet  of  the  American- 
Hawaiian  Steamship  Co.  increased  from  3  steamers  in  1899  to  9  steamers  in  1904,  and  to  17  in  1911. 
Five  new  steamers  were  ordered  in  1911.  The  rapid  growth  in  the  traffic  of  the  company  has  been  made  possible 
by  the  sugar  tonnage  from  Hawaii  to  the  eastern  ports  of  the~United  States.  The  freight  shipments  westbound 
between  our  two  seaboards  are  larger  than  those  eastbound,  but  the  exports  of  Hawaiian  sugar  have  enabled 
the  American-Hawaiian  Steamship  Co.  to  run  its  steamers  loaded  in  both  directions.  Indeed,  the  exports  of 
sugar  from  Hawaii  have  been  much  larger  than  the  American-Hawaiian  Co.  could  handle.  The  growth  in  the 
traffic  handled  by  the  American-Hawaiian  Steamship  Co.  between  our  two  seaboards  and  the  tonnage  of  Hawaiian 
sugar  transported  by  the  company  from  1906  to  1911,  inclusive,  are  stated  in  Table  I. 

The  through  route  between  the  two  seaboards  via  the  Southern  Pacific  Railroad  from  the  Pacific  coast 
to  Galveston  and  New  Orleans  and  from  those  cities  to  New  York  by  the  Southern  Pacific  Co.'s  steamers  (the 
Morgan  Line)  was  estabhshed  in  18S3.  The  Sunset-Gulf  route  immediately  began  an  active  warfare  against 
its  competitors  by  rail  and  by  water  lines,  and  secured  a  large  share  of  the  traffic  from  coast  to  coast.  The 
transcontinental  railroads,  other  than  the  Southern  Pacific,  ran  from  the  Mississippi  and  Missouri  Rivers  to 
tlie  Pacific  coast  and  were  primarily  interested  in  the  development  of  traffic  between  the  Middle  West  and  the 
Pacific  coast.  The  rates  by  the  Sunset-Gulf  route  from  New  York  to  San  Francisco  were  made  the  same  as 
the  rates  b}'  the  transcontinental  lines  from  St.  Louis  and  Missouri  River  crossmgs  to  the  Pacific.  Gradually 
the  rates  by  the  through  all-rail  lines  from  the  Atlantic  to  the  Pacific  were  made  the  same  as  the  rates  from 
Chicago,  St.  Louis,  and  Missouri  River  crossings  to  the  Pacific  seaboard.  Tliis  system  of  blanket  rates  was 
v\'orked  out  by  1896,  and  has  since  prevailed  on  west  bound  traffic.  The  establishment  of  the  same  rates  by 
the  Sunset-Gulf  route  and  by  the  all-rail  lines  between  the  two  seaboards  allied  the  Sunset-Gulf  route  with 
the  all-rail  lines  as  common  competitors  against  the  water  routes  around  South  America  and  ^-ia  the  Isthmuses 
of  Panama  and  Tehuantepec.  The  control  of  the  Pacific  Mail  Steamship  Co.  by  the  transcontinental  railroads 
since  1874,  and  the  ownership  of  the  Pacific  Mail  by  the  Southern  Pacific  from  1890  to  the  present,  enabled 
the  transcontinental  railroads,  as  has  been  explained,  to  keep  the  traffic  by  the  water  routes  within  small 
proportions,  until  a  few  years  ago,  when  the  American-Hawauan  Steamship  Co.,  and  later  the  California- 
Atlantic,  developed  a  relatively  large  tonnage  coastwdse  via  the  Tehuantepec  and  Panama  routes.  This  devel- 
opment of  the  coastwise  business  durmg  the  last  few  years  has  not  been  seriously  opposed  by  the  railroads, 
doubtless  because  of  the  rapid  development  of  the  rail  tonnage  consequent  upon  the  industrial  progress  of  the 
Intermountain  and  Pacific  Coast  States. 

The  volume  of  traffic  handled  between  the  Atlantic  and  Pacific  ports  of  the  United  States  by  the  several 
water  routes,  not  including  the  Sunset-Gulf  route,  each  year  from  1906  to  1911,  mclusive,  is  shown  in  detail 
in  Table  I.  The  total  tons  of  freight,  not  including  Hawaiian  sugar,  rose  from  less  than  500,000  tons  m  1906 
to  over  800,000  tons  in  1911.  If  the  tonnage  of  Hawaiian  sugar  be  included,  the  increase  during  the  six  years 
n  total  traffic  was  from  560,000  to  1,104,000  cargo  tons.  The  increase  durmg  the  four  years  ending  in  1911 
was  steady  and  rapid.  The  decline  during  1907  and  1908  is  to  be  accounted  for  mainly  by  the  San  Francisco 
earthquake  and  fire. 

An  important  fe/iture  of  Table  I  is  the  separation  of  total  traffic  into  that  handled  by  regular  steamship 
lines  and  that  carried  by  individual  vessels  owned  or  chartered  by  the  shippers.     The  traffic  handled  by  the 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  53 

regular  lines  more  than  trebled  during  the  six-year  period,  while  that  carried  by  individual  vessels  decreased 
more  than  50  per  cent.  In  1911,  82.8  per  cent  of  the  entire  traffic,  other  than  Hawaiian  sugar,  was  carried  by 
the  regular  lines,  whereas  in  1906  only  42.1  per  cent  was  shipped  by  the  established  steamship  lines. 

The  volume  and  varietur  of  the  traffic  between  the  two  seaboards  of  the  United  States  have  so  expanded 
as  to  render  the  services  of  estabhshed  steamship  lines  having  regular  and  frequent  sailings  more  economical 
than  the  services  of  indi^^dual  vessels  carr^-ing  full  cargoes  of  single  commodities.  The  traffic  manager  of 
the  American-Hawaiian  line  stated  to  the  Interstate  Commerce  Commission,  on  Januar}'  16,   1907,  that — 

We  carry  practically  everything.     In  the  course  of  a  year  I  think  we  have  at  least  90  per  cent  of  the  articles  that  may  be  named  in 
the  tran.scontinental  tariffs  and  a  great  many  articles  not  on  any  tariff  that  are  continually  offered  and  carried. 

The  traffic  carried  by  way  of  the  Panama  route  also  includes  a  large  variety  of  commodities.  The  west- 
botmd  freight  tariff  of  the  Panama  Railroad  Steamship  Line  requires  25  pages  to  enumerate  the  several 
articles  upon  which  individual  rates  are  quoted.  The  east-bound  tariff  of  the  Cahfornia-Atlantic  Steamsliip 
Co.  is-a  typewritten  document  of  20  pages. 

The  freight  carried  between  om-  two  seaboards  bj'  way  of  Panama  and  Tehuantepec  originates  and  termi- 
nates not  only  at  the  Atlantic  and  Pacific  ports,  but  also  at  interior  points.  Manifests  of  the  shipments  by  the 
American-Hawaiian  line  enumerate  commodities  shii^ped  from  eastern  New  York,  eastern  Pennsylvania, 
Massachusetts,  New  Jersey,  Vermont,  Connecticut,  Rhode  Island,  Maine;  also  commodities  from  SjTacuse 
and  Buffalo,  N.  Y.,  from  numerous  cities  in  Ohio,  from  certain  cities  in  !Micliigan,  and  from  Chicago,  Milwaukee, 
and  St.  Louis.  These  same  manifests  show  that  this  freight  is  destined  not  only  to  Pacific  coast  ports,  but  to 
inland  points,  such  as  Sacramento,  Stockton,  The  Dalles,  Oreg.,  Spokane  and  Everett,  Wash.,  and  Reno,  Nev. 

Most  of  the  bulk  cargoes  handled  in  vessels  owaied  or  chartered  by  shippers  now  move  by  the  disadvan- 
tageous routes  around  Cape  Horn  or  tlirough  the  Straits  of  Magellan.  The  opening  of  the  Panama  Canal  mil 
make  it  possible  for  the  indi^-idual  sliip  to  engage  in  intercoastal  traffic  under  much  better  conditions.  It  is 
not  probable,  however,  that  the  percentage  of  the  total  traffic  handled  by  individual  vessels  will  increase  in 
the  future.  It"is  more  probable  that  the  percentage  of  the  entire  business  handled  by  lines  will  increase.  Most 
of  the  traffic  from  our  Pacific  to  Atlantic  ports  carried  in  individual  vessels  owned  or  chartered  by  the  shipper 
will  necessarily  consist  of  cargoes  of  gi'ain,  lumber,  and  sugar.  The  sugar  traffic  is  already  large  and  may  be 
expected  to  become  heavier.  The  sliipments  of  gi-ain  from  the  west  coast,  especially  from  Puget  Sound  ports, 
to  Europe  through  the  canal  will  be  large,  but  it  is  not  probable  that  the  grain  from  the  northwestern  part  of 
the  United  States  wdll  fuid  very  much  market  at  the  Atlantic  seaboard.  That  section  of  the  United  States  will 
in  all  probability  be  supplied  from  the  grain  fields  of  the  Middle  West.  Barley  from  the  Pacific  Coast  States 
will  be  required  in  the  Mississippi  Valley  and  Atlantic  coast  sections  of  the  United  States,  and  may  be  shipped 
in  vessel  cargoes  as  charter  traffic.  However,  such  commodities  as  wheat,  barley,  wool,  canned  sahnon,  and 
others  of  a  like  character  that  might  advantageously  be  shipped  as  full  cargoes  in  chartered  vessels  will  prob- 
ably be  carried  eastbound  mainly  by  line  vessels,  because  of  the  fact  that  the  tonnage  of  traffic  westbound  is 
normally  heavier  than  the  tonnage  eastbound.  Line  vessels  will  seek  these  bulk  commodities  as  supplemental 
cargoes  eastbound  and  at  low  rates.  As  was  stated  above,  the  American-Hawaiian  line  has  develoi:)ed  a  profit- 
able business  by  secm'ing  a  heavy  eastbound  tonnage  of  Hawaiian  sugar.  In  1911  the  Hawaiian  fine  trans- 
ported 295,800  tons  westbound,  but  only  162,500  tons,  other  than  sugar,  eastbound. 

The  lumber  shipments  from  the  Pacific  coast  tlirough  the  canal  will  comprise  a  large  tonnage,  but  the  desti- 
nation of  most  of  the  traffic  will  be  Europe  and  not  the  eastern  part  of  the  United  States,  which  will  continue 
to  be  supphed  mainly  from  the  forests  in  the  Southern  States.  The  southern  pine  and  liardwood  forests  consti- 
tute the  largest  lumber-producing  district  in  the  United  States  at  the  present  time.  Shipments  are  made 
economically  and  expeditiousty  both  by  all-rail  routes  to  northern  markets  and  also  by  rail  to  southern  seaports 
and  thence  by  coastwise  vessels. 

Upon  the  opening  of  the  Panama  Canal  it  is  probable  that  manufacturers  and  other  large  shippers  wiU 
employ  their  own  or  cliartered  vessels  for  slupments  of  some  heavy  commodities  to  Pacific  markets.  Undoubt- 
edly there  will  be  a  good  deal  of  coal  sliipped  westbound  in  chartered  vessels.  Fertilizers,  heavy  iron  and  steel, 
and  some  other  commodities  may  be  sent  as  bulk  cargoes  in  indi^'idual  shijss  from  time  to  time.  It  is  probable, 
however,  that  most  commodities,  other  than  coal  and  fertihzers,  will  be  sliipped  by  line  steamers. 

The  fact  that  most  of  the  traffic  through  the  canal  between  the  two  seaboards  of  the  United  States  will  be 
handled  by  regular  steamship  fines  and  that  only  a  minor,  and  probably  a  decreasing,  percentage  of  the  total  will 
be  transported  in  individual  vessels  owned  or  chartered  by  shippers  should  be  given  careful  attention  in  consid- 


54  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

ering,  (1)  what  the  policy  of  the  United  States  should  be  concerning  the  prohibition  of  the  use  of  the  canal  by 
vessels  controlled  bj'  raOroads,  and  (2)  concerning  the  remission  or  omission  of  tolls  upon  vessels  engaged  in  the 
coastwise  business. 

1.  The  poUcy  of  denying  the  use  of  the  canal  to  vessels  owned  or  controlled  by,  or  affihated  with,  raUroad 
companies  is  advocated  bj^  those  who  favor  the  pohcy  mainly  for  two  reasons,  (a)  that  the  competition  between 
the  railroad-controlled  and  the  independent  steamship  lines  will  be  disastrous  to  the  independent  lines,  and  (b) 
that  the  Government  regulation  of  the  rates  and  services  of  ocean  carriers  is  impracticable  and  undesirable. 
If  coastwise  traffic  through  the  canal  were  to  be  handled  mainly  by  individual  vessels  owned  or  chartered  by 
shippers,  Government  regulation  would,  mdeed,  be  impracticable;  but  the  service  of  steamship  lines  operating 
over  estabhshed  routes  is  not  essentially  different  from  the  transportation  service  of  the  railroads.  Moreover, 
when  several  steamship  lines  operate  over  the  same  route  or  over  competing  routes  they  have  fixed  schedules 
of  rates  estabhshed  by  agreement  and  their  rate  policy  differs  in  no  marked  degree  from  that  of  competing 
railroads. 

The  rates  charged  by  steamship  lines  differ  fundamentally  from  charter  rates,  which  are  highly  competitive 
and  fluctuate  with  the  supply  of  and  demand  for  chartered  tonnage.  Charter  rates  fluctuate  according  to 
business  conditions  and  could  not  be  and  ought  not  to  be  subject  to  Government  regulation.  The  rates  of  steam- 
ship lines,  however,  are  not  only  made  in  conferences  of  the  competing  lines,  but  also  in  many  cases  are  fixed 
with  reference  to  the  rates  charged  by  the  railroads  with  which  the  steamship  lines  must  comj^ete  for  traffic. 
It  is  thus  at  least  doubtful  whether  it  is  good  pubHc  policy  not  to  regulate  the  rates  and  services  of  coastwise 
steamship  lines.     Whether  such  regulation  is  wise  or  unwise,  it  is  at  least  not  impracticable. 

2.  The  question  of  exempting  coastwise  shipping  from  the  payment  of  Panama  Canal  tolls  should  be 
decided  mth  reference  to  the  parties  that  would  be  benefited  by  that  policy.  This  subject  is  discussed  in  Chapter 
XII  of  this  report  in  considering  "The  principles  that  should  control  in  fixing  tolls,"  and  need  onh'  be  referred 
to  in  this  connection.  If  the  tolls  charged  coast^vise  ships  using  the  canal  are  added  to  the  rate  of  freight  paid 
by  shippers,  the  remission  of  tolls  wiU  benefit  the  shippers  and  possibly,  to  some  extent,  the  general  public.  On 
the  other  hand,  if  the  freight  rates  are  not  any  higher  because  of  the  tolls,  the  exemption  of  slups  from  the 
payment  of  tolls  will  not  affect  the  freight  rates,  and  the  exemption  of  the  payment  of  tolls  will  benefit  the  steam- 
ship company  and  not  the  shippers.  Charter  rates,  as  has  just  been  stated,  are  liighly  competitive  and  the 
rates  which  a  shipper  must  pay  to  secure  the  use  of  a  vessel  for  a  trip  through  the  canal  will  undoubtedly  be 
increased  by  the  amount  of  tolls  paid.  Shippers  using  vessels  which  they  own  or  charter  wiU  receive  the  benefit 
of  the  exemption  of  canal  tolls.  On  the  other  hand,  the  rates  charged  by  steamship  lines,  being  regidated  by 
agreements  among  competing  companies  and  being  fixed  -mih  reference  to  what  the  traffic  -will  bear,  will  presum- 
ably be  as  high  as  traffic  conditions  warrant  regardless  of  canal  tolls.  If  the  toUs  are  charged,  the  operating 
expenses  of  the  steamship  companies  mil  be  increased  by  the  amount  of  the  tolls  and  their  net  profits  will  be 
lessened  by  the  same  amount.  In  other  words,  free  tolls  vnW  be  a  gratuity  or  a  subsidy  to  the  coastwise  steam- 
ship lines.  The  reasons  for  believing  that  the  rates  of  the  coastwise  steamship  lines,  wliich  will  handle  from 
four-fifths  to  nine-tenths  of  the  water  traffic  between  the  two  seaboards  of  the  United  States,  will  not  be  affected 
by  the  pohcy  of  the  United  States  Government  as  regards  free  tolls  are  presented  in  Chapter  XII,  above  referred  to. 

II.    VOLLTHE  AND    NaTURE    OF   TRANSCONTINENTAL    RaILROAD    TrAFFIC. 

The  tonnage  of  transcontinental  railroad  traffic  can  not  be  accurately  stated,  because  the  railways  in  report- 
ing their  traffic  do  not  distinguish  between  transcontinental  and  local  freight.  Estimates  made  by  the  traffic 
officials  of  the  transcontinental  lines  in  1909  placed  the  total  volume  of  westbound  transcontinental  tonnage 
moving  by  rail  and  water  at  approximately  3,000,000  tons.'  The  westbound  tonnage  of  the  water  lines  that 
year  (see  Table  I)  was  313,558  tons.  In  round  numbers,  therefore,  2,686,000  tons,  or  89.5  per  cent  moved  west- 
ward by  rail  and  10.5  per  cent  by  water. 

The  total  thi-ough  and  local  traffic  of  the  six  leading  transcontinental  railroads  ^  increased  11.2  per  cent  from 
1909  to  1911.  That  rate  of  growth  would  bring  the  westbound  through  transcontinental  rail  traffic  up  to  about 
2,987,000  tons  in  1911.  The  tomiage  moved  westward  coastwise  in  1911  was  494,600  tons  and  the  total  west- 
bound transcontinental  rail-and- water  tonnage  aggregated  about  3,481,600  tons.     This  would  indicate  that 

'  Railroad  Commission  of  Nevada  d.  Southern  Pacific  Co.  et.  al.  (21 1.  0.  C.  Reps.,  351). 

!  Northern  Pacific;  Great  Northern;  Union  Pacific;  Chicago,  Milwaukee  &  St.  Paul;  Southern  Pacific;  and  .\tcliison,  Topeka  &  Santa  Fe. 


PANMIA  CANAL  TRAFFIC  AND  TOLLS. 


55 


•85.8  per  cent  of  the  total  volume  in  1911  moved  by  rail  and  14.2  per  cent  by  water.  The  higher  percentage  of 
the  total  rail-and-water  traffic  carried  by  the  water  hnes  in  1911,  as  compared  with  1909,  is  explained  by  the  fact 
that  during  1911  there  was  a  slight  decline  in  rail  tonnage  and  a  large  gain  in  the  traffic  of  the  coast-to-coast 
water  carriers,  the  tonnage  of  the  six  leading  transcontinental  railroads  decreasing  3.9  per  cent  and  that  of  all 
of  the  railroads  in  the  United  States,  3.7  per  cent.  The  volume  of  westbound  water  traffic,  however,  was  24.9 
per  cent  in  excess  of  what  it  was  in  1910.  During  the  two-year  period,  1909-1911,  there  was  a  net  increase 
of  11.2  per  cent  in  the  total"  tonnage  of  the  six  leading  transcontinental  raih-oads,  but  the  gain  during  those 
years  in  the  westbound  tonnage  of  the  coast^to-coast  water  lines  was  57.7  per  cent. 

The  westbound  rail  tonnage  comprises  a  wide  range  of  commodities,  the  manufactures,  prepared  food, 
stuffs,  and  merchandise  shipped  to  the  Pacific  coast  by  rail  being  of  great  variety.  Table  IX,  pages  63-65, 
contains  a  hst  of  the  more  important  commodities,  with  the  freight  rate  for  each  article. 

Several  tabulations  have  been  made  to  indicate  roughly  the  origin  of  the  westbound  railroad  traffic.  Table 
II  shows  the  origin  of  the  shipments  to  the  Pacffic  coast  over  one  of  the  transcontinental  hnes  during  a  period 
of  four  months.'  Only  22  per  cent  of  the  through  traffic  of  this  fine  originated  in  "Atlantic  coast  and  common 
point  territory;"  35  per  cent  came  from  points  in  the  east,  including  Pittsburgh,  Buffalo,  and  common  points; 
62  per  cent  originated  west  of  Pittsburgh-Buffalo  common  points;  and  54  per  cent  was  shipped  from  the  Chicago 
territory  and  points  west  of  Chicago. 

Table  II — ORIGIN  OF  WESTBOUND  RAIL  SHIPMENTS  TO  PACIFIC  COAST  TERMINALS. 


New  York-Boston  and  common  points. 
Pittsburgh-Buffalo  and  common  points 
Cincinnati-Detroit  and  common  points. 

Chicago  and  common  points 

Mississippi  River  and  common  points.., 

Missouri  River  and  common  points 

Southeastern  points 

■Colorado  points 


This  agrees  substantially  \vith  tho  statement  made  by  Mr.  G.  W.  Luce,  assistant  to  the  vice  president  of 
the  Southern  Pacific,  before  the  Interstate  Cormnerce  Commission.  He  stated  tliat  not  over  20  per  cent  of  the 
eastern  traffic  destined  to  the  Pacific  terminals  originated  east  of  Buffalo  and  Pittsburgh.  Of  this  20  per  cent 
he  estimated  that  over  half  moved  by  water. 

Various  compilations  were  filed  by  the  transcontinental  railroads  with  the  Interstate  Commerce  Commission 
at  its  request,  during  the  hearings  of  the  transcontinental  rate  cases,  for  the  purj^ose  of  showing  the  origin  of 
transcontinental  traffic  received  at  Spokane,  Wash.,  and  Reno,  Nev.  Table  III  contains  an  estimate  of  the 
westbound  shipments  received  at  Spokane,  via  the  Northern  Pacific,  in  1906.  The  percentage  of  freight 
originating  at  or  near  the  Atlantic  seaboard  was  smaller  than  was  true  of  the  shipments  to  the  Pacific  Coast 
terminals.  Indeed,  only  12.09  per  cent  originated  in  "New  York-Boston  and  common  points,"  and  but  5.82 
per  cent  in  the  Pittsburgh-Buffalo  district.  Four-fifths  of  the  traffic  originated  west  of  Pittsburgh  and  Buffalo 
and  seven-tenths  at  Chicago  and  points  west  of  Chicago.  Tho  Intermountain  States  of  the  West  receive  their 
supplies  mainly  from  the  Mississippi  Valley,  and  not  from  the  Atlantic  seaboard  States. 


October,  1909,  and  January,  April,  and  July,  1910. 


56 


PANAJVIA  CANAL  TRAFFIC   AND  TOLLS. 


Table  III. 


-ESTIMATED  TONNAGE  OF  INTERSTATE  WESTBOUND  TRANSCONTINENTAL  FREIGHT  RECEIVED  AT 
SPOKANE  VIA  THE   NORTHERN   PACIFIC   RAILWAY,  1906. 


Carload 
,  (pounds). 


Less  than 
carload 
(pounds). 


New  York-Boston  and  common  points. 
Pittsburgh-Buflalo  and  common  points 
Cincinnati- Detroit  and  common  points. 

Chicago  and  common  points 

Mississippi  River  points 

Missouri  River  points 

Colorado  points 

Southeastern  points 


12,262,5(M 
8,001,972 
10,589,274 
24,717,180 
10,  S67, 710 
34,230,210 
28,880,268 
3,607,368 


5,736,954 
658, 788 

1,886,370 

2,776,542 
' 1,881,684 

1,903,344 
325,734 
437,820 


17,989,458 
8,660,760 
12,475,644 
27,493,722 
12,749,394 
36, 133, 554 
29,206,002 
4,045,188 


12.09 
5.82 
8.39 

18.48 
8.57 

24.29 

19.63 
2.73 


133,146,486 


15,607,236 


148,763,7 


100.00' 


Table  IV  contains  a  statement,  made  by  the  Great  Northern  Eailway,  of  the  origin  of  the  westbound 
freight  dehvered  at  Spokane,  Wash.,  during  1906. 

Table  IV.— ESTIMATED  TONNAGE  OF  INTERSTATE  WESTBOUND  TRANSCONTINENTAL  FREIGHT  RECEIVED  AT 
SPOKANE  VIA   THE   GREAT   NORTHERN   RAILWAY,  190G. 


New  York-Boston  and  common  points. 
Pittsburgh-Buffalo  and  common  points 
Cincinnati-Detroit  and  common  points. 

Chicago  and  common  points 

Mississippi  River  points 

Missouri  River  points 

Southeastern  points 


Carload, 
(pounds). 


6,005,112 
17,307,306 

5, 184, 192 
13,797,918 

6,2.59,806 

7,748,922 
145,200 


56,448,456 


Less  than  car- 
load 
(pounds). 


3,208,248 
694,038 
596, 886 

1,406,778 
260, 130 
485,736 


9,213,360 
18,001,344 

5.781,078 
15,204,696 

6,519,936 

8,234,658 
145,200 


63,100,272 


14.61 

28.52: 
9.16- 
24.09 
10. 33. 
13.05 


Table  V  contains  a  statement  of  the  origin  of  the  westbound  tonnage  carried  to  Reno,  Nev.,  via  the  Ogden 
gateway,  in  1908.  The  figures  were  compiled  from  the  waybills  of  the  Southern  Pacific  by  the  Nevada  Rail- 
road Commission.  Groups  B  and  C  comprise  the  territory  east  of  Chicago.  Only  24.48  per  cent  of  the  traffio 
reaching  Reno  westbound  originates  east  of  Chicago. 


Table  V. 


-WESTBOUND  TRANSCONTINENTAL  FREIGHT  RECEIVED  AT  RENO,  NEV.,  VIA  OGDEN  GATEWAY  (1908), 

IN  TONS. 


Carload. 

Less  than 
carload. 

Total. 

Per  cent. 

Originating  in  group— 

183 
2,030 
2,207 
1,970 
1,891 
1,666 

619 

70 
685 
507 
173 
89 
11 
44 

253 
2,715 
2,714 
2,143 
1,980 
1,677 

663 

2.  OS 

22.40 

22.40 

E                                                                                                                  

17.64 

F                                                                                                               

16.30 

13.88 

5.30 

10,566 

1,579 

12,145 
11,177 

100.00 

23,322 

PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


57 


Commissioner  Lane  '  of  the  Interstate  Commerce  Commission,  in  discussing  the  origin  of  the  trafHc  received 
from  the  east  at  Reno,  stated: 

Whatever  the  reason,  the  fact  stands  forth  throughout  this  record  that  the  soiwce  of  supply  upon  which  the  far  western  communities 
largely  draw  their  manufactiu-es  has  within  half  a  century  moved  westward  from  the  Atlantic  seaboard,  so  that,  as  was  found  by  the  Rail- 
road Commission  of  Nevada  from  an  analysis  of  the  billing  of  actual  shipments  into  Reno,  75  per  cent  of  their  tratiic  coming  from  the  east 
originated  no  farther  east  than  the  longitude  of  Chicago.  There  are  cotton  mills  as  far  west  as  Kansas  City;  mining,  milling,  and  farming 
machinery  is  produced  more  largely  in  and  about  Chicago  than  in  any  other  section  of  the  country;  boots  and  shoes,  hats  and  clothes,  cook- 
ing utensils,  and  the  multitudinous  articles  of  domestic  use  may  be  secured  in  large  part  without  coming  east  of  the  Alleghenies;  in  fact 
the  center  of  those  industiies  which  supply  the  far  West  apparently  is  not  far  removed  from  the  center  of  population  of  the  country. 
This  is  a  pregnant  fact.  It  was  announced  by  the  Santa  Fe  officials,  when  they  opened  their  through  line  from  Chicago  to  Los  Angeles, 
that  they  thought  it  the  part  of  wisdom  to  make  their  rates  lower,  or  as  low,  from  Chicago  than  from  New  York,  so  that  the  industries  of 
the  Middle  West  might  develop.  They  would  make  their  line  independent  of  their  eastern  connections  in  so  far  as  that  was  possible,  and 
instead  of  bidding  against  the  sliippers  of  the  seaboard  for  traffic  destined  to  the  Pacific  coast  they  would  develop  industries  close  to  their 
own  eastern  terminus  which  would  supply  the  western  demand,  and  thereby  develop  a  traffic  for  the  lines  west  of  Chicago  which  need  not 
be  divided  with  the  carriers  east  of  that  city — an  exclusive  traffic,  one  which  could  be  carried  at  rates  more  compensatory  than  any  that 
could  be  had  out  of  the  division  of  a  through  coast-to-coast  rate. 

The  share  of  the  traffic  received  at  interior  points,  such  as  Spokane  and  Reno,  originating  east  of  Chicago 
is  now  perhaps  slightly  larger  than  in  1906  to  1908,  when  the  railroads  began  making  blanket  rates  to 
these  points  on  certain  commodities.  However,  the  interior  to^vns  receive  a  smaller  share  of  their  total  receipts 
from  the  east  than  do  the  Pacific  coast  terminals,  because  lower  rates  are  generally  maintained  to  the  interior 
intermountain  towns  from  the  Central  West  than  from  the  eastern  part  of  the  United  States. 

In  considering  the  possible  effect  of  the  Panama  Canal  upon  the  traffic  of  the  transcontinental  railroads  it 
is  important  to  know  the  destination  of  the  westbound  rail  traffic.  The  following  statement  was  made  by  the 
Southern  Pacific  to  the  Interstate  Commerce  Commission  to  show  the  destinations  of  the  freight  moving  west- 
ward through  the  Ogden  gateway  during  the  three  years  1906-7  to  1908-9: 

Table  VI.— TOTAL  TRAFFIC  MOVING  WESTWARD  THROUGH  THE   OGDEN   GATEWAY   (IN  TONS).' 


To- 

1906-7 

1907-8 

1908-9 

330,195 
56,779 
17,305 
32,037 
59,239 
27.216 
54,747 

367,311 

281,413 
46,895 
13,200 
43,302 
46,903 
24,258 
28,842 

454,629 

238,426 

Oakland 

12,914 
26,427 

19,924 
24,P32 

Total 

944,829 

939,442 

Per  cent. 
61.1 
41.2 
34.9 
38.9 

Per  cent. 
61.7 
34.9 
29.9 
48.3 

Per  cent. 

1  I.  C.  C.  Docket  1665,  Exhibit  No.  29  of  Traffic  Bureau  of  Southern  Pacific  (Mr.  Butler),  Oct.  25, 1909. 

During  the  tliree  vears  included  in  the  statement  presented  in  Table  VI,  from  49.9  per  cent  to  61.1  per 
cent  of  the  westbound  traffic  through  the  Ogden  gateway  was  destined  to  the  various  Pacific  coast  terminals, 
and  from  38.9  to  50.1  per  cent  to  nonterminal  points. 

The  foregoing  evidence  tends  to  show  that  only  a  small  portion  of  the  westbound  transcontinental  traffic 
of  the  railroads  is  strictly  transcontinental  in  the  sense  that  it  moves  between  the  seaboards.  The  different 
statements  vary,  but  indicate  that  but  20  to  22  per  cent  of  this  traffic  originates  east  of  Pittsburgh  and  Buffalo, 
and  that  but  50  per  cent  to  55  per  cent  is  destined  to  Pacific  coast  terminals. 

A  general  estimate  has  been  made  of  the  eastbound  transcontinental  traffic.  It  is  apparently  about  equal 
to  the  volume  of  the  westbound  tonnage  but  may  be  less.     A  greater  volume  of  freight  is  sliipped  out  of  the 

1  Railroad  Commission  of  Nevada  v.  Southern  Pacific  Company  et  al.  (21 1.  C.  C.  Reps.,  364). 


58  PAX.A3IA  CANAL  TRAFFIC  AND  TOLLS. 

Pacific  coast  States  than  is  received;  but  most  of  the  traffic  goes  to  foreign  countries  and  to  the  Middle  West, 
and  not  to  the  eastern  part  of  the  United  States.  The  heaviest  items  of  the  outbound  tonnage — lumber,  grain, 
and  oil — are  not  sold  largely  in  our  eastern  markets. 

The  water-borne  traffic  eastbound  from  our  Pacific  to  our  Atlantic  ports  in  1910  aggregated  about  141,600 
tons.  In  1911,  after  the  Cahfornia-Atlantic  Line  had  entered  the  field  and  the  traffic  of  the  Pacific  Mail  and 
American-Hawaiian  had  suddenly  increased,  the  total  was  about  313,500  tons.  According  to  a  rehable  esti- 
mate, the  total  eastbound  transcontinental  traffic  in  1910  and  in  1911 — by  coastwise  and  by  rail  lines — was 
3,000,000  tons  per  annum,  which  was  the  amount  of  the  westbound  tonnage  in  1909.  The  railroad  share  was 
about  2,858,400  in  1910  and  about  2,686,500  in  1911.  The  tonnage  of  the  transcontinental  railroads  is  known 
to  have  been  somewhat  less  in  1911  than  in  1910.  The  estimate  shows  that  the  raih'oads  carried  nearly  95  per 
cent  of  the  eastbound  transcontinental  traffic  in  1910,  and  89.5  per  cent  in  1911;  and  the  share  of  the  water 
carriers  was  respectively  5  per  cent  and  10.5  per  cent. 

The  leading  commodities  transported  eastbound  by  the  transcontinental  railroads  are  listed  in  Tables  X 
and  XI,  pages  66-68.  Fresh,  dried,  and  preserved  fruits  and  vegetables,  fresh,  frozen,  dried,  smoked,  salted, 
and  canned  fish,  fish  oil,  hides  and  skins,  leather,  twine  and  cordage,  wool,  barley  and  malt,  wine,  earthenware, 
and  spices  are  among  the  leading  articles  shipped  to  eastern  markets.  To  the  Central  West  these  articles  and, 
in  addition,  a  certain  amount  of  sugar  are  sliipped,  some  sugar  also  reacliing  New  York  via  the  Sunset-Gulf 
route.     The  Central  West  likewdse  purchases  some  Pacific  coast  lumber,  wood  products,  and  barley. 

The  percentage  of  traffic  moving  by  water  is  less  in  the  eastbound  than  in  the  westbound  business,  chiefly 
because  fresh  fruits  and  vegetables  are  not  at  present  handled  by  the  water  carriers,  and  because  some  of  the- 
bulky  commodities,  such  as  lumber,  do  not  find  a  ready  market  east  of  the  Central  West. 

Westbound  water-borne  traffic  originates  throughout  a  comparatively  wide  area  extending  from  the  Atlantic 
seaboard  to  Cliicago;  but  the  nature  of  eastbound  water-borne  cargoes  is  such  that  they  are  not  carried  inland 
in  large  amounts  from  the  eastern  ports  of  destination.  Sliipments  from  the  Pacific  coast  to  the  Central  West 
are  almost  entirely  by  rail. 

The  eastbound  transcontinental  railroad  traffic  has  not  been  classified  by  destinations,  but  it  may  be  safely 
assumed  that,  as  in  case  of  the  westbound  business,  only  the  smaller  portion  is  strictly  transcontinental.  From 
20  to  22  per  cent  of  the  westbound  tonnage  originates  east  of  Bufl"aIo  and  Pittsburgh,  but  the  percentage  of  the 
eastbound  tonnage  destined  to  points  east  of  Buffalo  and  Pittsburgh  is  probably  smaller. 

III.  Transcontinental  Rail  and  Water  Rates. 

A.    transcontinental  railroad  rates. 

The  present  rate  systems  of  the  transcontinental  railroads  have  been  largely  influenced  by  the  rates  charged 
by  coastwise  carriers.  An  analysis  of  the  present  rates  from  coast  to  coast  charged  by  the  railroads  and  by 
the  competing  water  carriere  must  necessarily  precede  an  intelligent  consideration  of  the  probable  effects  of 
the  Panama  Canal  upon  the  traffic  and  rates  of  the  transcontinental  railroads.  It  will  be  well  to  begin  this 
analysis  with  a  brief  description  of  the  transcontmental  rate  structure.  In  a  volume  on  Railroad  Traffic  and 
Rates  the  main  features  of  the  transcontinental  rate  system  are  described  as  follows:' 

1.  Blanket  or  common  rates  are  charged  on  westbound  tranacontinental  traffic  from  most  points  east  of  the  Missouri  River.  Thia 
is  true  of  both  class  and  commodity  tariffs,  but,  as  will  appear  as  the  discussion  proceeds,  there  are  numerous  exceptions  made  to  the  general 
policy  of  blanketing  rates  from  the  territory  east  of  the  Missouri.  Upon  some  commodities  the  rates  eastbound  from  the  Pacific  coast  are 
the  same  to  all  places  east  of  the  Missouri,  and  on  more  articles  common  rates  prevail  to  places  east  of  the  Mississippi,  but  the  blanketing 
of  rates  is  less  general  upon  eastbound  than  upon  westbound  shipments. 

2.  Upon  eastbound  traffic,  and  to  a  less  extent  upon  that  toward  the  west,  graded  zone  tariffs  have  been  established.  The  places  east 
•  of  the  Rocky  Mountains  are  classified  in  10  "rate  groups,"  A  to  J.     Upon  the  higher  classes  of  freight  and  upon  numerous  commodities 

the  rates  to  all  groups  are  the  same,  but  upon  the  lower  classes  and  upon  most  commodities  the  tariffs  vary  by  rate  groups.  Class  rates 
westbound  are  practically  identical  with  those  eastbound,  i.  e.,  graded  for  classes  below  the  third;  and  in  westbound  commodity  tariffs 
there  are  numerous  instances  of  grading  by  groups,  but  this  grading  of  commodity  tariffs  westbound  is  an  exception  to  the  more  general 
rule  of  blanketing  rates  from  points  on  and  east  of  the  Missouri  River. 

3.  The  rates  westbound  to  the  intermediate  points  east  of  the  Pacific  seaboard  terminals  are,  as  a  rule,  higher  than  the  through  tariffs, 
the  higher  charges  being  fixed  by  the  addition  to  the  through  rates  of  either  fixed  arbitraries  or  the  local  rates  back  from  the  terminals,  as 
will  be  explained  presently.  The  rates  eastbound  from  the  intermediate  points  are  usually  higher  than  from  the  terminals,  although 
many  intermediate  towns  are  given  the  same  rates  as  the  terminal  cities  enjoy. 

'  E.  R.  Johnson  and  G.  G.  Huebner,  "Railroad  Traffic  and  Rates,"  Vol.  I,  pp.  459-460. 


PANAJMA  CANAL  TKAFFIC  AND  TOLLS.  59 

The  10  rate  groups  A  to  J  referred  to  are  defmed  in  the  accompanying  Plate  A.  Eastbound,  and  to  a 
less  extent  westbound,  the  rates  from  and  to  the  Pacific  coast  are  graded  according  to  these  rate  groups. 
The  rates  on  all  articles  not  so  graded  are  blanketed,  i.  e.,  they  are  the  same  to  all  points  east  of  the  Missouri 
River  on  commodities  shipped  to  and  from  Pacific  coast  terminals. 

The  rates  to  intermediate  pomts  such  as  Spokane  and  Reno  are  generally  higher  than  to  the  Pacific  Coast 
terminals,  and  are,  for  the  most  part,  not  blanketed.  Recently,  however,  the  rates  on  some  commodities  to 
these  interior  points  have  also  been  blanketed  and  have,  in  some  cases,  been  made  equal  to  the  charges  granted 
to  the  coast  terminals.  The  system  of  charging  higher  rates  to  the  interior  towns  than  to  the  coast  terminals 
has  long  been  opposed  by  the  intermountain  cities,  and  relief  was  sought  of  the  Interstate  Commerce  Commis- 
sion, which  rendered  decisions  regarding  Spokane,'  Wash.,  rates  in  1910  and  1911,  and  Reno,^  Nev.,  rates,  in 
1909,  1910,  and  1911.  The  Spokane  and  Reno  decisions  announced  June  22,  1911,  are  especially  important 
in  that  the  commission  then  attempted  to  change  the  system  according  to  wliich  rates  to  intermediate  points 
are  made.  Five  territorial  zones  were  established  by  the  commission,  as  shown  in  Plate  B,  and  it  was 
ordered  that  in  shipments  from  zone  1  to  intermediate  points  no  higher  rate  may  be  made  than  to  coast  ter- 
minal points,  that  from  zone  2  the  rates  to  intermediate  points  may  not  exceed  those  to  the  coast  terminals 
by  more  than  7  per  cent,  that  from  zone  3  the  rates  to  intermediate  points  were  not  to  be  more  than  15  per 
cent,  and  from  zone  4  not  more  than  25  per  cent,  above  the  through  rates  to  the  coast  terminals.  No  opinion 
was  expressed  as  to  zone  5,  because  the  rates  from  that  territory  were  not  involved  in  the  proceedings.  These 
orders  of  the  commission  have  been  appealed  to  the  United  States  Supreme  Court  for  review,  but  they  indicate 
the  attitude  of  the  commission  with  respect  to  the  extent  to  which  transcontinental  railroad  charges  may  prop- 
erly be  allowed  to  be  affected  by  the  competition  of  the  coastwise  water  lines. 

Table  ^T!I  tabulates  the  westbound  transcontinental  class  rates  now  in  effect  and  shows  the  extent  to 
which  they  are  blanketed.  The  various  groups  A  to  J  are  those  defined  by  Plate  A.  Table  VIII  gives  the 
eastbound  class  rates.  Class  rates,  however,  are  of  but  slight  importance  in  the  transcontinental  shipments,  for 
but  few  articles  are  sliipped  under  the  class  tariffs. 

Commodity  rates  are  quoted,  in  the  transcontinental  tariffs,  on  over  3,000  different  articles  to  the  coast 
terminals,  and  on  a  somewhat  less  number  from  those  terminals.  The  westbound  commodity  rates  on  selected, 
leading  articles  shipped  to  the  Pacific  coast  terminals  are  shoASTi  in  Table  IX,  and  the  eastbound  commodity 
rates  on  articles  of  similar  importance  shipped  from  the  Pacific  are  given  in  Table  X.  They  are  quoted  to  and 
from  the  various  rate  groups  A  to  J  defined  in  Plate  A,  so  as  to  show  the  extent  to  which  they  are  blanketed 
and  graded. 

The  transcontinental  eastbound  railroad  rates  on  lumber  are  fixed  in  accordance  with  a  different  plan 
than  is  followed  in  making  other  commodity  rates,  and  are  published  in  separate  tariff  books.  Table  XI  states 
the  lumber  rates  from  the  Pacific  Coast  States  to  various  indicated  eastern  and  central  western  markets.  The 
terms  coast  rates,  Spokane  rates,  Montana-Oregon  rates,  Truckee  rates,  etc.,  refer  to  cHfferent  lumber  shipping 
districts.  The  rates  quoted  in  columns  A  to  F,  in  the  case  of  the  charges  from  the  northwestern  area,  and  in 
colimms  1  and  2  under  California  rates  are  the  charges  on  different  kinds  of  lumber  products  as  defined  in  the 
footnotes  of  the  table. 

1  City  of  Spokane  et  al.  v.  Northern  Pacific  Railway  Co.  (21 1.  C.  C.  Reps.,  400-427). 
=  Railroad  Coinmission  of  Nevada  v.  Southern  Pacific  Co.  et  al.  (21 1.  C.  C.  Reps.,  329-384). 
34998°— 12 5 


60 


PANAMA  CANAL  TRAFFIC  AND   TOLLS. 


PANAJVIA  CANAL  TEAFFIC  AND  TOLLS. 


61 


62 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Table  VII.— WESTBOUND  TRANSCONTINENTAL   RAILROAD   CLASS  RATES. 
[Rates  in  cents  per  100  povmds.J 


To  north  Pacific  coast  termin 

als  from  groups— 

To  California  terminals  from  groups— 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

Class  I 

300 
260 
220 
190 

300 
260 
220 
190 

300 
260 
220 
190 

300 
260 
220 
190 
165 
100 
123 
100 
100 
95 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 
260 
220 
190 
160 
160 
125 
100 
95 
85 

300 
260 
220 
190 
160 
160 
125 
100 
95 
85 

300 
260 
220 
190 
160 
160 
125 
100 
95 
85 

300 
260 
220 
190 
160 
160 
125 
100 
95 
85 

300 
260 
200 
175 
160 
140 
120 
95 
85 
80 

f 
\ 
1 

'. 

300 
300 

200 
200 

220 
220 

190 
190 

165 
165 

160 
160 

123 
123 

100 
100 

100 
100 

95 
95 

300 
300 

260 
260 

220 
220 

190 
190 

300 
300 

260 
260 

220 
220 

190 
190 

30O 
300 

260 
260 

220 
220 

190 
190 

165 
165 

160 
160 

125 
123 

100 
100 

100 
100 

95 

300 
300 

260 
260 

220 
220 

190 
190 

165 
165 

160 
160 

123 
125 

100 
100 

100 
100 

95 

300 
300 

260 
260 

220 
220 

190 
183 

163 
160 

160 

160 

125 
123 

100 

95 

100 
93 

95 
85 

300 
280 

260 
242 

220 
203 

190 
170 

165 
150 

160 
150 

125 
115 

100 
90 

100 

87 

95 

78 

300 
280 

260 
242 

220 
205 

190 
170 

165 
150 

160 
150 

123 
115 

100 
90 

100 
87 

93 

78 

300 

Class  II 

260 
260 

ClassIII.             

225 
200 

Class  IV. 

19U 
175 

160 
160 

140 

120 

fl.'i 

85 

80 

80 

I  I'pper  line=class  rates  via  gateways  10  to  16;  lower  line=class  rates  via  gateways  1  to  9  and  via  17. 

Table  VIII.— EASTBOUND  TRANSCONTINENTAL   RAILROAD   CLASS  RATES. 
[Rates  in  cents  per  100  pounds.] 


Classes. 

From  north  Pacific  coast  terminals  to 

groups — 

From  California  terminals  to  groups— 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

370 
330 
263 
210 

370 
330 
265 
210 

370 
330 
265 
210 

340 
300 
240 
190 
170 
175 
155 
120 
105 
95 

320 
280 
230 
185 
165 
167 
148 
115 
100 
90 

300 
260 
220 
ISO 
160 
160 
140 
110 
95 
85 

300 
260 
220 
180 
160 
160 
140 
110 
95 
85 

300 
260 
220 
180 
160 
160 
140 
110 
95 
85 

300 
260 
220 
ISO 
160 
160 
140 
110 
95 
85 

300 
260 
190 
155 
130 
140 
120 
95 
85 
80 

300 
260 
220 
190 

300 
260 
220 
190 

300 
260 
220 
190 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 
260 
220 
190 
163 
160 
125 
100 
100 
95 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 
260 
220 
190 
165 
160 
125 
100 
100 
95 

300 

260 

200 

17,'i 

160 

140 

120 

95 

85 

80 

PANAMA  CANAL  TRAFFIC  AND  TOLLS 

Table  IX.— WESTBOUND    TRAN, 


63 


SCOXTINENTAL    COMMODITY  RAIL  AND  WATER'  RATES. 

[Rates  in  cents  per  100  pounds.] 


Railroad  rates  to  North  Pacific  terminals  from  groups— 

Commodities. 

A. 

] 

3. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

L.c.l. 

C.I. 

L.C.I. 

CI. 

L.c.l. 

C.l. 

L.C.I. 

C.I. 

L.C.I. 

C.l. 

L.c.l. 

C.l. 

L.C.I. 

C.I. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.C.I. 

C.l. 

Harvesters,  reapers,  etc.    (24,000 
pounds), . 

125 
123 

100 

275 

125 
125 

100 

275 

125 
125 

100 

260 

100 
140 

150 
200 
140 

160 
220 

160 
150 

185 

125 
175 

100 
150 

175 

150 


120 
110 
110 

125 
125 

100 

45 
90 

100 
150 
75 

110 

150 

150 

110 

95 
•    160 

90 

200 
80 

85 

60 
65 

125 
140 

85 

80 
150 
90 
75 
75 
90 

250 

"lOO 
140 

150 
200 
140 

160 
220 

160 
150 

175 

125 
175 

100 
150 

175 
150 

120 
110 
110 

120 
120 

100 

115 
115 

100 

115 

115 

115 
115 

Plows,  harrows,  etc.(24,000  pounds) 

Beer,  malt  extract  in  glass  or  stone, 
packed  or  in  wood 

Boots  and  shoes,  n.  o.  s.  boxed 

275 

Cement,  building  and  paving,  in 

45 
90 

100 
150 
75 

95 

150 

150 
110 

90 
160 

100 
140 

150 
165 
140 

160 
220 

160 
150 

40 
90 

100 
150 

75 

95 

1.50 

150 
110 

85 
160 

100 
140 

150 
165 
140 

40 
90 

100 
150 

75 

100 

50 

100 

50 

100 

35 

Cereal  breakfast  foods  in  packages. . 

140 

150 
200 
140 

160 
220 

90 

100 
150 
80 

110 

150 

150 
110 

95 
160 

90 

220 

SO 
So 

140 

150 
200 
140 

160 
220 

160 
150 

200 

125 
175 

90 

100 
150 
SO 

110 

ISO 
150 

no 

95 
160 

90 

220 
SO 

So 

140 

150 
200 
140 

160 
220 

160 
150 

200 

125 
175 

125 
150 

175 
150 

130 
110 
110 

90 

100 
150 

80 

110 

150 

150 
110 

95 
160 

90 

220 
80 

85 

65 
70 

125 
140 

85 

90 
150 
95 
75 
75 
90 

Chinaware,   not   including   orna- 
ments, in  boxes,  barrels,  or  casks 

150 
165 
140 

100 
150 

150 
165 
140 

100 
150 
75 

150 
165 
140 

160 

100 
150 
75 

95 

Underwear,  boxed  (20,000  poimds) 

Coffee  (roasted)  in  boxes,  barrels, 
nr  (inims 

Crackers,  etc.,  in  boxes,  barrels, 
baskets,  or  tubs,  or  cases  (24,000 
poimds) 

chinery  (24,000  poimds) . . " 

Cotton  sheets  and  sheetings,  etc. . . 

Earthenware,     stoneware,      and 
crockery       (packed)       (24,000 
pounds) 

160 
150 

160 

110 

160 

110 

160 

110 

160 

110 

Electrical  goods,  trolley  wire,  line 

Chairs,  cane,  carpet   or   leather 
seated,  boxed  (20,000  pounds) . . . 

200 

125 

175 

Glass,  common   window,   boxed 

90 

200 
80 

85 

60 
65 

125 
140 

85 

80 
150 
90 
75 
75 
90 

125 
175 

100 
150 

175 
150 

115 
110 
110 

90 

125 

90 

125 

90 

125 

90 

125 

90 

Mechanics'  tools,  boxed 

Harness  and  saddlery,  n.   o.  s. 
(20  000  pounds) 

200 
80 

85 

60 
65 

125 
140 

85 

80 
150 
85 
75 
75 
90 

200 

200 

200 



200 

Iron  and  steel  rails,  girders,  bars, 
plate  No.  11  and  heavier,  etc.  j 
(30,000  pounds) 

Boiler  plate,  n.  o.  s.,  Nos.  U  to  16, 
not   bent   or   punched    (40,000 

Billets,  blooms,  ingots,  and  scrap 
steel  (60,000  pounds) 

100 

Pipes,  fittings,  and  connections. . . 

150 
175 

70 

125 
140 

85 

90 
150 
95 
75 
75 
90 

150 
175 

150 

130 
110 
110 

70 

125 
140 

85 

90 
150 
95 
75 
75 
90 

Whisky,  in  bulk,  in  barrels,  or 
drums  (24,000  pounds) 

150 

140 

85 

150 

140 
85 

150 

140 
85 

120 

140 
80 

Condensed    milk    in    tin,   glass, 
packed  in  boxes  or  in  wood  (40,000 

150 

Nails,   spikes,   and  wire   (40,000 

Oil-well  supplies  (24,000  pounds). . 

Paints  (40,000  pounds) 

130 
110 
110 

115 

85 

115 

85 

110 

75 
90 

110 

ParaflOne  wax 

90 

90 

75 

>  See  also  pages  64  and  65. 


64 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  IX.— WESTBOUND  TRANSCONTINENTAL  COMMODITY  RAIL  AND  WATER  RATES— Continued. 

[Rates  in  cents  per  100  pounds.] 


Commodities. 


Railroad  rates  to  North  Pacific  terminals  from  groups- 


Pickles,  n.  0.  S- 


Soap,  in  packages  (40,000  pounds). 
Stamped  ware 


Stoves  (cast  iron),  cooking,  heat- 
ing, etc.  (24,000  pounds) 


Tin  plate  or  sheet  metal  for  trunks.       125 

Tobacco,  unmanufactured ,  in  cases 
or  bogheads  (20,000  pounds) 175 


Commodities. 


Harvesters,  reapers,   etc.    (24,000 
pounds) 


Plows,  harrows,  etc.  (24,000  pounds) 


Beer,  malt  extract  in  glass  or  stone, 
packed  or  in  wood 


Boots  and  shoes,  n.  o.  s.  boxed 


Cement,  building  and  paving,  in 
packages  (40,000  pounds) 


Cereal  breakfast  foods  in  packages. . 

Chinaware,  not  includiug  orna- 
ments, in  boxes,  barrels,  or  casks 
(24,000  pounds) 


Underwear,  boxed  (20,000 pounds) 
Cotlee  (green),  in  sacks 


Railroad  rates  to  California  terminals  from  groups- 


Crackers,  etc.,  in  boxes,  barrels, 
baskets,  or  tubs,  or  cases  (24,000 
pounds) 


Creamery  and  cheese  factory  ma- 
ctiinery  (24,000  pounds) 


Cotton  sheets  and  sheetings,  etc...    160 


Earthenware,  stoneware,  and 
crockery  (packed)  (24,000 
pounds) 


Chairs,    cane,   carpet    or   leather 
seated,  bo.Ked  (20,000  pounds). . 


Glass,  common  window,   boxed 
(24,000  pounds) 


Mechanics'  tools,  boxed. 


Harness  and  saddlery,  n.  o.  s. 
(20,000  pounds) 


Iron  and  steel  rails,  girders,  bars, 
plat*  No.  11  and  heavier,  etc. 


(30,000  pounds). 


Water  rates 
to  Pacific 
coast  ports 

from 

New  York 

(Panama 

Linc).i 


Water  rates 
to  Pacific 
coast  ports 

from 

New  York 

(Hawaiian 

Line). 


Panama  Railroad  Steamship  Co. 


PANAJVIA  CANAL  TRAFFIC   AND  TOLLS. 


65 


Table  IX — WESTBOUND  TRANSCONTINENTAL  COMMODITY  RAIL  AND  WATER  RATES— Continued. 

[Rates  in  cents  per  lOO  pounds.] 


Commodities. 


Hailroad  rates  to  California  terminals  from  groups — 


Water  rates 
to  Pacific 
coast  ports 

from 

New  York 

(Panama 

Line). ' 


Water  rates 
to  Pacific 
coast  ports 

from 

New  York 

(Hawaiian 

Line). 


Boiler  plate,  n,  o.  s.,  Nos.  11  to  16, 
not  bent  or  pmiched  (40,000 
pounds) 


Billets,  blooms,  ingots,  and  scrap 
steel  (60,000  pounds) 


Pipes,  fittings,  and  connections... 


Whisky,  in    bulk  in    barrels  or 
drums  (24,000  pounds) 


Gas  and  gasoline  engines 

Condensed  nailk  in  tin,  glass  packed 
in  boxes,  or  in  wood  (40,000 
pounds) 


Nails,   spikes,    and   wire   (40,000 
pounds) 


Oil-well  supplies  (24,000  poimds) . 

Paints  (40,000  pounds) 

Paper,  news 

Paper,  building 

Paraffin  wax 

Pickles,  n.  0.  s 


Soap,  in  packages  (40,000  pounds) 
Stamped  ware 


Stoves  (cast  iron),  cooking,  heat- 
ing, etc.  (24,000  pounds) 


Tin  plate  or  sheet  metal  for  trunks. 


Tobacco,  unmanufactured,  in  cases 
or  hogsheads  (20,000  pounds) 


'  Panama  Railroad  Steamship  Co. 


2  Manufactured  smoking. 


66 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  X.— EASTBOUND  TRANSCONTINENTAL  COMMODITY  RAIL  AND  WATER  i  RATES. 

[In  cents  per  100  pounds.) 


Railroad  rates  from  North  Pacific  coast  terminals  to  groups— 

Commodities. 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

I. 

J. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

L.c.l. 

C.l. 

Dried  fruits  (raisins,  prunes,  and 
figs)  in  boxes,  barrels,  casks,  or 

220 
ISO 

110 

75 

220 
ISO 

110 
75 

100 
120 
120 

220 
180 

110 
75 
100 
115 
115 

220 
165 

110 

100 
100 
100 
75 

220 
165 

110 
75 
100 
100 
100 
75 

220 
155 

110 

75 

f    85 
t  100 

r  85 

\  100 

f    85 
t  100 

1    65 
\     70 

220 
155 

} 

} 

} 

} 

110 

75 

(    85 
\  100 

1    85 
\  100 

f    85 
\100 

/    65 
\    70 

220 
155 

} 

} 

} 

} 

110 
75 
100 
100 
100 
75 

220 
155 

110 
75 
100 
100 
100 
75 

220 
155 

110 

Preserved  fruit  in  bulk  in  wood  — 

75 

f    85 
\  lOO 

(    85 
\  100 

(    85 
\  100 

/    60 
1    65 

! 

150 

125 
65 
60 
75 

125 

85 

85 

120 

70 
125 
95 

125 

100 
150 

135 
200 

150 

125 
125 

250 

170 
145 

150 

125 
65 
60 
75 

125 

85 

85 

120 

70 
125 

95 
125 

100 

150 

125 
200 

150 

125 
125 

250 

170 
145 

150 

125 
60 
55 
75 

125 

85 

85 
120 

125 

125 

125 

125 



60 

55 

Sugar-beet  seed  in  packages 

150 
200 

75 

150 
200 

75 

150 

85 

85 

120 

70 
125 

150 
200 

150 

150 
125 

250 
170 

75 

150 

85 

85 

120 

70 
125 

135 
200 

150 

125 
125 

250 

170 
145 

150 

125 
200 

150 

125 
125 

75 

125 

85 

85 
120 

125 
200 

150 

125 
125 

75 

150 

85 

85 
120 

125 
200 

150 

125 
125 

75 

150 

85 

85 
120 

125 
200 

150 

125 
125 

75 

Fish,  fresh  or  (rozen,  in  refrigerator 

112} 

Fish.canned,  boxed  (40,000  pounds). 

Fish,  dried,  smoked,  or  salted,  in 
packages  1.  c.  1.  and  in  boxes  or 

150 

160 
125 

85 
85 

120 

70 
125 

150 

150 
125 

250 
170 

85 
85 

Leather,  various  kinds,  in  boxes  or 
rolls 

Hides,  dry,  in  bales  or  loose  (20,000 

120 

Skins,  various  kinds,  in  boxes  or 

250 

Fishoil 

70 
125 

95 
125 

100 

150 

170 
145 

70 
125 

95 
125 

170 
145 

70 
125 

95 
125 

170 
145 

70 
125 

95 
125 

140 

145 

70 

Spices,  n.  o.  s.  (24,000  pounds) 

170 

125 
95 

135 
100 
150 

150 

135 
100 
150 

150 

135 
100 
150 

100 

Wool,  in  grease,  in   bales  (24,000 

150 

Wool,    scoured,    in    bales    (24,000 

1 

1  See  also  page  67. 

'  From  fruit-shipping  centers  specified  in  tariffs;  : 
deciduous  fruit  rates  applying  to  other  destinations. 


I  case  of  Cahfomia  terminal  rates  on  grapes  and  peaches,  those  shown  apply  only  to  certain  destinations,  regular 


PANAIVIA  CANAL  TRAFFIC  AND  TOLLS. 


67 


Table  X EASTBOUND    TRANSCONTINENTAL    COMMODITY    RAIL   AND    WATER    RATES— Continued. 

(In  cents  per  100  pounds.) 


Railroad  rates  from  California  terminals  to  groups — 

Water  rates 
from  Pacific 

coast  to 

New  York 

(Panama 

Lines).' 

Water  rates 
from  Pacific 

Commodities. 

A. 

B. 

C. 

D. 

E. 

F. 

G. 

H. 

L 

J. 

coast  to 

New  York 

(.\merican- 

Hawaiian 

Line). 

L.c.1. 

C.l. 

L.cJ. 

C.l. 

L.cX 

C.l. 

L.c.1. 

C.l. 

L.cJ. 

C.l. 

L.cJ. 

C.l. 

L.cJ. 

C.l. 

L.cJ. 

C.l. 

L.cJ. 

C.l. 

L.cJ. 

C.l. 

Any  quan- 

Any  quan- 
tity. 

Dried  fruits  (raisins,  prunes,  and 
figs)  in  boxes,  barrels,  casks,  or 

220 
150 

110 

85 

no 

220 
150 

110 
85 
110 

220 
150 

110 
85 
110 

220 
150 

110 
85 
110 

220 
150 

110 
85 
110 

220 
130 

210 
85 
110 

220 
150 

210 

85 

no 

220 
150 

210 
85 
110 

220 
130 

210 
85 
110 

220 
150 

210 
85 
110 

45-50 
45 

45 

Preserved  fruit  in  bulls  in  wood 

45 

125 

fllO 
\115 

}-■ 

100 
75 
115 
115 

100 

75 
113 

115 

95 

115 
115 

95 
75 

95 
115 

lis 

95 
73 
115 
115 

95 

115 
115 

115 
140 

123 

65 

60 

115 

140 

125 

115 

(120 
\140 

(120 
il2o 

}- 
] 

115    

113 

Grapes  and  peaches  (20,000  pounds)'. 

1 

65 
60 
75 

135 

63 
60 
75 

125 

60 
55 
75 

125 

60 
55 
75 

125 

68 
63 
75 

85 

60 

40 
40 
55 

75 

Sugar-beet  seed  in  packages 

130 

130 

75 

150 

75 

145 

125 

75 

125 

75 

Fish,  fresh  or  frozen,  in  refrigerator 

150 

l>75 
\8S 

85 

130 

70 
125 

95 
135 

70 

150 

125 
115 

250 

170 
145 

100 
130 

150 

f75 
\85 

85 

130 

70 
125 

95 
135 

70 

}l50 

125 
115 

250 

170 
145 

100 
130 

125 

85 

85 

130 

70 
125 

95 
135 

62i 
65 
70 

150 

125 
115 

250 

170 
145 

100 
130 

125 

85 

85 

130 

70 
125 

95 
135 

62i 
65 
70 
75 

150 

126 
115 

250 

170 
145 

100 
130 

200 

125 
85 

85 

130 

70 
125 

95 
135 

55 
55 
60 

75 

150 

125 
115 

250 

170 
145 

100 
130 

200 

125 

85 

85 

130 

70 
125 

95 
135 

55 
55 
60 

75 

150 

125 
115 

250 

170 
145 

100 
130 

200 

125 

85 

85 

130 

70 
125 

95 
135 

55 
55 
60 
75 

150 

125 
115 

250 

170 
145 

100 
130 

200 

125 

85 

85 

130 

70 
125 

95 
135 

55 
55 
60 
75 

150 

125 
115 

250 

170 
145 

100 
130 

200 

125 

85 

85 

130 

70 
125 

95 
135 

55 
55 
60 
75 

Fish,  canned ,  bo.xed  (40,000  pounds) . 

Fish,  dried,  smoked,  or  salted,  in 
packages  1.  c.  1.  and  in  boxes  or 

150 

125 
115 

85 
85 

130 

70 
125 

95 
135 

65 

150 

125 
115 

250 

170 
145 

100 
130 

45 

50 
75 
60 

UOO 
45 
60 

50-55 

45 

Leather,  rarious  kinds,  in  boxes  or 

Hides,  dry,  in  bales  or  loose  (20,000 

65 

Skins,  Tarious  kinds,  in  boxes  or 

250 

FishoU         ..                        

45-50 

Spices,  n.  0.  s.  (24,000  pounds) 

170 
145 

Wool,  in  grease,  in  bales  (24,000 

100 
130 

40 

40 
35 
40 
40 
40 

40 

Wool,   scoured,   in   bales   (24,000 

40 

35-42^ 

35-42i 

Malt,  in  sacks  

70 

75 

75 

200 

75 

75 

200 

35-42} 

200 

75  1  200 

75  1  200 

40 

1 

1  Panama  R.  R.  S.  Co.;  Pacific  MaU  S.  S.  Co.;  CaUfomia-Atlantic  S.  S.  Co. 

2  From  fruit-shipping  centers  specified  in  tariffs;  In  case  of  California  terminal  rates  on  grapes  and  peaches,  those  shown  apply  only  to  certain  destinations,  regular 
deciduous  fruit  rates  applying  to  other  destinations. 

!  Minimum  carload  weights  for  salmon  60,000,  in  order  to  get  rate  of  75  cents. 
<  Sealed  in  piclde,  in  barrels  or  casks. 


68 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  XI.— EASTBOUND  TRANSCONTINENTAL   RAILROAD   RATES   ON  LUMBER. 
[In  cents  per  100  pounds.] 


Albany 

Baltimore 

New  York  and  Boston 

Norfolk 

Philadelphia 

Richmond 

Rochester 

Syracuse 

Utica 

Chicago ' 


From  points  in  Oregon,  Washington,  Idaho,  Montana,  Alberta,  and  British  Columbia."     ^™"  P"'"'^  ^°-  CaUfornia,  Nevada,  Oregon,  and 


A. 

B. 

C. 

D. 

A. 

B. 

C. 

84 

84 

84 

74 

81 

81 

81 

82 

82 

82 

72 

79 

79 

79 

85 

85 

85 

75 

82 

82 

82 

82 

82 

82 

72 

79 

79 

79 

83 

83 

83 

73 

80 

80 

80 

82 

82 

82 

72 

79 

79 

79 

81J 

81i 

81J 

71J 

78J 

78i 

785 

81} 

81i 

81J 

71J 

785 

78J 

785 

83 

83 

83 

73 

80 

80 

80 

65 

65 

65 

55 

62 

62 

62 

52 


A. 

B. 

C. 

81 

81 

81 

79 

79 

79 

82 

82 

82 

79 

79 

79 

SO 

80 

80 

79 

79 

79 

785 

785 

785 

785 

785 

785 

80 

80 

80 

62 

62 

62 

52 


Coast, 
Spokane, 
Montana- 
Oregon 
rates. 


Propor- 
tional rates 
applying 
from  Al- 
bina,  East 
Portland, 
Portland, 

and 

St.  Johns, 

Oreg. 


Group  F. 


Group    Group 


Tmckee  rates. 


Group    Group 


57 


62 


Beckwith  rates. 


Group    Group 


57 


62 


1  Group  A  rates  apply  to  shingles. 

Group  B  rates  apply  to  lumber  (including  creosoted  lumber),  and  timbers  (including  creosoted  timbers),  of  cedar,  single-car  lengths,  and  the  following  articles  manu- 
actured  from  cedar:  Blocks  (base,  comer,  and  head),  box  shooks,  columns,  cross  arms,  eave  troughs,  guttering,  ladder  material,  match  blocks,  match  splints,  molding 
(carpenters'),  paving  blocks  (creosoted  or  not  creosoted).  picture  backing,  pipe  material,  sash  (knocked  down),  staves,  heading  and  bolts,  tank  material,  telegraph  and 
telephone  brackets,  ties,  tubing  (pump),  window  frames  (knocked  down). 

Group  C  rates  apply  to  long  timbers,  poles,  piling,  or  lumber  requiring  two  or  more  cars  for  transportation. 

Group  D  rates  apply  to  lumber  (including  creosoted  lumber),  poles  (including  cedar  poles),  piling  (including  cedar  piling),  and  timbers  (including  creosoted  timbers) 
of  Cottonwood,  fir,  hemlock,  larch,  pine,  and  spruce,  single-car  lengths,  and  the  following  articles  manufactured  therefrom:  Bark  (hemlock),  blocks  ^ base,  comer,  and  head)- 
box  shooks,  columns,  cross  arms,  eave  troughs,  guttering,  ladder  material,  lath  (including  cedar  lath),  match  blocks,  match  splints,  mine  wedges,  molding  (carpenters') 
paving  blocks  (creosoted  or  not  creosoted),  pickets  (including  cedar  pickets),  picture  backing,  pipe  material,  posts  (including  cedar  posts),  sash  (knocked  down),  staves, 
heading  and  bolts,  tank  material,  telegraph  and  telephone  brackets,  ties,  tubmg  (pump),  window  frames  (knocked  down). 

Group  E  rates  apply  to  articles  manufactured  from  cedar,  Cottonwood,  fir,  hemlock,  larch,  pine,  redwood,  or  spruce' 
lumber,  as  follows:  Sash,  doors  and  blinds;  door,  window,  and  screen  frames;  inside  finishings;  panel  frames  (used  as 
backing  for  keyboards  for  pianos);  stairwork  and  veneering,  in  straight  carloads,  or  in  mixed  carloads  with  any  or  all 
of  the  following  named  articles,  viz,  carpenters'  moldings  in  the  white  for  door  frames  and  for  inside  finishing,  columns, 
eave  troughs,  guttering,  ladder  material  match  blocks,  match  splints  in  packages,  pickets,  picture  backing,  pipe  material, 
including  iron  bands  and  wooden  or  iron  connections  for  wooden  pipe,  consisting  of  ells,  tees,  crosses,  and  reducers;  porch 
balusters  and  spindles,  pump  tubing,  tank  material. 

Note.— Cottonwood,  fir,  hemlock,  larch,  pine,  redwood,  or  spruce  lumber,  and  lath  may  be  shipped  in  mixed  carloads  with  the  above-mentioned  articles  at  the  rate 
named,  except  that  the  rate  on  cedar  liunber  and  articles  enumerated  above,  when  shipped  in  mixed  carloads,  will  be  the  Group  B  rate,  but  not  less  than  SO  cents  per 
100  pounds. 

Group  F  rates  apply  to  articles  manufactured  from  cedar,  Cottonwood,  fir,  hemlock,  larch,  pine,  redwood,  or  spruce 
lumber,  as  follows:  Backing  (picture),  blinds,  blocks  (base),  blocks  (comer),  blocks  (head),  box  material,  carpenters' 
moldings,  in  the  white  for  door  frames  and  for  inside  finishing,  columns,  cross  arms,  doors,  eave  troughs,  forest  waste, 
frames  (door),  frames  (panel  used  as  backing  for  keyboards  for  pianos),  frames  (screen,  k.d.),  frames  (window),  gut- 
tering, heading,  inside  finishings,  ladder  material,  lath,  logs,  lumber,  lumber  (cedar),  lumber  (redwood),  match  blocks, 
match  lumber,  match  splints  (in  packages),  match  strips,  pickets,  pipe  material,  poles  (telegraph),  poles  (telephone), 
posts  (fence),  sash,  sawmill  refuse,  shingles,  stairwork,  staves,  tank  material,  ties,  timbers  (mining),  tubing,  tubing 
(pump),  veneering. 

Note.— Cottonwood,  fir,  hemlock,  larch,  pine,  or  sprace  lumber,  and  lath  may  be  shipped  in  mixed  carloads  with  the  above-mentioned  articles  at  the  rate  named. 

2  Group  1  rates  apply  on  lumber  (except  woods  of  value,  viz,  cocobolo,  ebony,  lignum-vitae,  and  rosewood),  and  the  following  articles  manufacttu'ed  therefrom:  Blinds, 
blocks  (base,  comer,  and  head),  box  material,  columns,  cross  arms,  doors,  finishings  (inside),  forest  waste,  frames  (door,  window,  and  screen,  plain  or  wired),  guttering, 
heading,  lath,  logs,  lumber,  match  blocks,  match  splints',  match  strips  or  match  lumber,  moldings  (carpenters')  in  the  white,  for  door  frames  or  inside  finishing,  pipe 
material,  poles  (telegraph  and  telephone),  posts  (fence),  sash,  saw-mill  refuse,  staves,  tank  material,  ties,  timber  (mining),  tubing. 

Straight  or  mLxed  carloads,  minimum  weight  30,000  poimds,  except  that  minimiun  carload  weight  for  imglazed  sash  in  straight  carloads  will  be  24,000  poimds. 
Group  2  rates  apply  on  shingles,  in  straight  carloads,  or  in  mixed  carloads  with  articles  taking  Group  1  rates  (see  above),  minimum  carload  weight  30,000  pounds. 

3  Via  Chicago,  Milwaukee  &  St.  Paul  Railway. 


Minimum  carload  weight,  when  in  cars  34  feet  or 
less  in  length,  24,000  pounds;  in  cars  over  34 
feet  in  length,  30,000  pounds. 


Minimum  carload  weight  when  in  cars  34  feet  or 
less  in  length  24,000  pounds;  in  cars  over  34  feet 
in  length,  30,000  poimds. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


69 


B.  RATES  COAST  TO  COAST  BY  WATER. 

The  water  rates  between  Atlantic  and  Pacific  ports  may  now  be  described  and  compared  with  the  charges 
by  rail.  The  re^lar  hnes  operating  via  the  Panama  and  Teliuantepec  routes  have  tariffs  or  schedules  of  rates, 
and  a  comparison  of  water  and  rail  charges  may  readily  be  made.  In  Tables  IX  and  X  eastbound  and  west- 
bound rates  via  the  Panama  and  American-Hawaiian  Lines  are  stated  side  by  side  with  corresponding  rail 
charges  on  commodities  transported  both  by  the  railroads  and  by  the  water  lines.  Direct  comparison  can  be 
made  between  the  water  rates  given  in  the  table  and  the  rail  rates  quoted  to  and  from  territorial  groups  "A" 
and  "C"  in  wliich  the  port  of  New  York  is  located.  The  relation  of  aU-rail  rates  to  rail-and-water'rates  to  and 
from  interior  points  is  explained  below. 

The  water  rates  on  lumber  from  the  Pacific  coast  to  New  York  via  the  Panama  and  Tehuantepec  routes  are 
given  in  Table  XII.  They  vary  from  40  to  60  cents  per  100  pounds  ($8  to  $12  per  ton)  by  way  of  Panama. 
Via  Tehuantepec  the  rates  range  from  40  cents  per  100  pounds  (.$8  per  ton)  to  $20  per  thousand  feet  of  lumber. 
The  railroad  rates  from  the  North  Pacific  coast  to  New  York  vary  from  75  to  85  cents  per  100  pounds  on  dif- 
ferent lumber  products,  and  from  the  California  coast  from  75  to  80  cents  per  100  pounds. 

Table  XII EASTBOUND  TRANSCONTINENTAL  WATER  RATES  ON  LUMBER. 


Eand  of  lumber. 


Panama  Line,i  from  Portland, 
Astoria,  Oreg.;  Grays  Harbor 
and  Puget  Sound  jorts,  San 
Francisco  and  East  San 
Pedro,  Cal.,  to  New  York. 


Estimated 

weight  per 

1,000  feet 

b.  m. 

Rate  per  100 
pounds. 

Pounds. 

3,300 

$0.45 

3,000 

.55 

2,500 

.55 

2,000 

.55 

3,300 

.45 

3.000 

.55 

2.000 

.55 

Fir  lumber: 

Rough  green 

Rough  dry , 

Finishing  surfaced 

Flooring 

Spruce  or  cedar: 

Rough  green 

Rough  dry 

Finishing  surfaced. 

Siding 

Lath: 

Dry 

Green 

Shingles: 

Extra  "A" 

Perfection 

Eureka 

Clears 


Drv- 


Green. 
$0.50 


Dry. 
$0.60 


I  Rates  via  California  Atlantic  Line.    The  Pacific  Mail  does  not  cater  to  the  lumber  traffic. 


!  Per  1,000  lath. 


Notes  applying  to  shipments  via  Panama: 

1.  Lumber  exceeding  35  feet  in  length  or  12  inches  in  width  or  less  than  1  inch  thick  will  not  be  accepted  for  transportation  except  that  the  smaller  pieces  will  b© 
taken  when  put  up  in  secure  bundles. 

2.  All  shipments  of  lumber,  shingles,  and  lath  will  be  accepted  and  charges  collected  on  basis  of  estimated  weights  shown  opposite  each  item. 

3.  All  small  pieces  of  lumber  to  be  put  up  in  secure  bundles. 

4.  We  reserve  the  privilege  of  carrying  all  shipments  of  green  lumber  and  shingles  on  deck 


70 


PANAilA  CANAL  TRAFFIC  AND  TOLLS. 


The  rates  by  the  water  lines  on  different  commodities  range  from  20  to  60  per  cent  below  the  raiboad  tariffs. 
Upon  some  articles  the  difference  is  greater,  while  for  othere  it  is  less.  There  is  no  general  relation  or  fixed 
differential  between  the  water  and  rail  charges,  the  water  rates  upon  each  commodity  being  sufficiently  below 
the  rail  charges  to  enable  the  steamsliip  lines  to  secure  the  traffic  desned. 

The  rates  over  the  Sunset-Gulf  route  have,  since  1909,  been  the  same  as  the  all-rail  rates.  Southern  Pacific 
traffic  agents  route  freight  over  the  Morgan  Line  steamers  as  their  comiection  between  the  Gulf  and  New  York; 
and  by  getting  freight  through  from  New  York  to  San  Francisco  within  an  average  time  of  15  days  and  5  hours  * 
and  by  absorbing  the  rail  rates  to  and  from  interior  points,  they  obtain  a  large  tonnage  of  freight  for  then  com- 
bined rail  and  water  line.  When  freight  is  shipped  via  the  Sunset-Gulf  rou  te  from  an  interior  point  such  as  Pitts- 
burgh, the  rate  is  the  same  whether  the  freight  moves  direct  by  all  rail  from  Pittsburgh  to  the  West  Coast  or  to 
New  York  and  is  then  forwarded  via  the  Sunset-Gulf  route.  The  Southern  Pacific  absorbs  the  rail  rate  to  New 
York.^ 

There  is  no  fixed  or  definite  relationship  between  the  rates  via  the  Panama  and  Tehuantepec  routes.  Origi- 
nally the  rates  were  practicaUy  the  same  by  both  routes;  then,  for  a  time,  the  Panama  charges  were  generally 
less,  especially  eastbound,  the  Panama  line  being  the  differential  or  longer  route  as  compared  with  that  via 
Tehuantepec.  At  present,  many  rates  are  the  same  by  the  two  routes;  on  numerous  commodities  the  Tehuan- 
tepec rates  are  slightly  less;  and  on  some  articles  the  charges  are  less  via  the  Panama  route.  In  makhig  com- 
parisons, however,  it  is  important  to  bear  in  mind  the  difference  in  the  service  rendered  by  the  Panama  Line  and 
the  American-Hawauan  Line.  As  hereafter  explained,  the  rates  of  the  latter  are  to  and  from  coast  terminals, 
while  the  Panama  line  absorbs  raih-oad  rates  from  interior  points  to  the  extent  of  20  cents  per  100  pounds  on 
westbound  shipments,  and  the  entire  rail  rate  from  the  Pacific  Coast  to  certain  interior  points  in  California. 

In  Table  X,  a  small  number  of  the  eastbound  water  rates  are  quoted.  The  information  contained  in 
Table  X  is  supplemented  by  the  detailed  list  of  commodity  rates  westbound  and  eastbound  via  the  Panama 
route  and  via  the  American-Hawaiian  Steamship  Line,  presented  in  Table  XIII,  A  and  B: 

Table  XIII  A.-WESTBOUND  WATER  RATES  VIA  PANAMA  AND  TEHUANTEPEC  ROUTES,  NEW  YORK  TO  PACIFIC 

COAST  TERMINALS. 

[In  cents  per  100  pounds.] 


Commodities. 


Panama  Line, 


Agricultural  implements 

Bath  tubs,  iron-porcelain  lined . 


Belting,  leather  or  rubber. 
Bicycle8 


Binders'  boards 

Books,  blank,  including  school  comjwsition  books. 

Brass  and  copper  heavy  goods 

Calcium  chloride 

Candles,  wax,  grease 

Canned  goods 


Chemicals  and  drugs.. 

Clothes  pins 

Clothes  wringers 

Copper  wire 

Dry  goods 

Food,  animal 

Glucose 

Glycerine 


1  G.  F.  Richardson,  Supt.  of  Transportation  of  Southern  Pacific,  in  U.  S.  v.  Union  Pacific  et  al.,  evidence  Vol.  X, 
i  J.  C.  Stubbs,  Trat.  Director  Harriman  System,  in  U.  S.  v.  Union  Pacific  et  al.,  Evidence  Vol.  I,  p.  295. 


PANAJVIA  CANAL  TRAFFIC   AND   TOLLS. 


71 


Table  XIII  A.— WESTBOUND  WATER  RATES  VIA  PANAMA  AND  TEHUANTEPEC  ROUTES,  NEW  YORK  TO  PACIFIC 

COAST  TERMINALS— Continued. 

[In  cents  per  100  pounds.] 


Panama  Line. 


Horseshoes,  per  keg 

Insulators,  glass  or  porcelain. 

Iron,  band,  bar,  or  plates 

IroB,  sheets 

Iron,  blooms  and  billets 

Lampblack,  in  barrels 

Lawn  mowers 

Machinery,  n.  o.  s.,  K.  D 

Milk,  condensed 

Nuts,  edible 

Nuts,  kernels  and  meats 

Oil,  lubricating 

Paint 

Paper  bags 

Paper,  book 

Paper,  building 

Paper  tickets,  sales,  transfer.. 

Paper,  writing...; , 

Plaster 

Preserves 

Pumps 

Badiators 

Rubber  goods 


Soda,  ash 

Soda,  caustic 

Stamped  ware 

Starch 

Stove  polish 

Tapioca 

Tobacco,  manufactured  smoking.. 

Toys 

Trunks 

Varnish 

Wax 

Wliiaky 

Wire,  barbed  or  plain 

Wire  rope 

Wire  cloth 

Wine 


110-360 
150-200 


70 
70-88 


72 


PANAilA  CANAL  TRAFFIC  AND  TOLLS. 


Table  XIII    B.— EASTBOUND    WATER     RATES    VIA     PANAMA    AND    TEHUANTEPEC    ROUTES— PACIFIC    COAST 

TERMINALS  TO   NEW  YORK. 

[In  cents  per  100  pounds.] 


Commodities. 


Asphaltum 

Barytes 

Beans 

Barley 

Beans,  vanilla 

Books 

Beeswax 

Canned  goods 

Fruit,  dried 

Grain  and  mill  stuffs. 

Hides,  dry 

Hops 

Household  goods 

Junk 

Liquors 

Lumber  and  shingles 

Machinery 

Matting 

Metals 

Nuts,  edible 

Nuts,  kernels 

Oils 

Reels 

Tea 

Wool 


45-60 
35-40 


35-  60 
40-100 


1  Forty  cents  per  100  pounds  to  S20  per  M  feet. 

As  is  sho^vn  by  Table  XIII,  A  and  B,  the  coast-to-coast  rates  via  the  Panama  and  Tehiiantepcc  routes, 
while  similar,  are  not  absolutely  alike.  Some  are  identical  by  both  routes,  and  others  less  via  Panama,  but  the 
greater  number  are  slightly  lower  via  Tehuantepec.  In  shipments  to  and  from  the  interior,  however,  the  rates 
of  the  Panama  line  are  lower  because  of  its  absorption  of  part  or  all  of  the  rail  rate.  There  is  no  traffic  agree- 
ment covering  the  rates  by  the  two  routes;  but,  naturally,  the  rates  over  the  two  routes  are  made  A\'ith  reference 
to  each  other  and  to  the  rates  of  the  transcontinental  raihoads.  The  general  level  of  charges  by  each  of  the 
water  routes  is  so  fixed  as  to  enable  each  of  the  water  lines  to  obtain  sufficient  traffic  in  competition  mth 
the  other  and  with  the  rail  lines. 


C.    INTERRELATION    OF    INTERCOASTAL    WATER    RATES    AND    TRANSCONTINENTAL    RAIL   RATES. 

The  extent  to  wliich  the  transcontinental  railroad  tariffs  are  affected  by  the  coast-to-coast  water  rates  has 
long  been  a  disputed  question;  but  it  is  indisputable  that  the  rail  charges  are  influenced  by  water  competition. 
The  Interstate  Commerce  Commission  in  1911  reiterated  its  former  findings  as  follows:  (City  of  Spokane  et  al. 
V.  Northern  Pacific  Railway,  21  I.  C.  C.  Reps.,  416.)  "This  question  of  fact  has  been  often  considered  in  the 
past,  and  Anth  but  one  unvarying  result.  The  Circuit  Court  of  the  United  States  has  twice  found,  once  in  a 
proceeding  concerning  these  very  rates  to  Spokane,  that  active  water  competition  does  exist  which  controls 
the  coast  rates."  "The  manifests  of  steamships,"  says  the  commission,  "proves  more  conclusively  than  any 
mere  statement  that  almost  every  article  which  is  the  subject  of  ordinary  commerce  between  the  coasts  can  and 
does  move  from  New  York  to  San  Francisco  by  water  at  rates  materially  lower  than  those  mentioned  by  the 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  73 

defendants  by  rail.  We  have  used  San  Francisco  as  the  destination  port  upon  the  Pacific  coast,  and  in  some 
instances  rates  from  New  York  to  San  Francisco  are  a  trifie  lower  than  to  the  other  coast  cities;  but,  generally 
speaking,  the  San  Francisco  rate  is  maintained  at  Los  Angeles,  Portland,  Seattle,  Tacoma,  and  other  points 
on  the  coast.  Passing  for  the  time  being  the  extent  and  effect  of  this  competition  at  interior  points,  it  must 
be  found  as  a  fact  that  there  is  real  and  active  water  competition  between  New  York  and  San  Francisco,  between 
the  Atlantic  and  the  Pacific  coasts,  which  does  limit  the  rate  of  transportation  which  can  be  charged  by  rail 
between  those  points  upon  nearly  every  article  wliich  moves  by  rail." 

The  fact  that  the  water  lines  have  at  times  been  controlled  by  the  rail  carriers  does  not  alter  the  conclusion 
that  water  competition  is  a  factor  influencing  the  transcontinental  rail  rates.  The  traffic  by  water  is  now 
increasing,  and  the  water  rates  are  materially  lower  than  the  rail  tariffs,  iforeover,  potential  ocean  competition 
influences  the  charges  fixed  by  the  railways.     As  was  stated  by  Commissioner  Prouty  in  the  Spokane  decision: 

It  is  said  that  the  amount  of  the  movement  bywater  is  so  insignificant  that  it  should  be  disregarded.  The  amount  is  not  insignificant. 
If  reference  be  had  to  the  traffic  which  actually  originates  upon  the  Atlantic  seaboard  a  considerable  percentage  moves  by  water,  but 
the  significant  thing  is  not  the  amount  of  the  movement,  but  the  ever-present  possibility  of  that  movement.  As  was  said  by  the  Supreme 
Court  in  the  Alabama  Midland  case,  speaking  of  the  effect  produced  upon  rail  rates  to  Montgomery  by  the  Alabama  River: 

*  *  *  "WTien  the  rates  to  Montgomery  were  higher  a  few  years  ago  than  now,  actual,  active  water-line  competition  by  the  river 
came  in,  and  the  rates  were  reduced  to  the  level  of  the  lowest  practicable  paying  water  rates,  and  the  volume  of  carriage  by  the  river 
is  now  comparatively  small;  but  the  controlling  power  of  that  water  line  remains  in  full  force,  and  must  ever  remain  in  force  as  long  as 
the  river  remains  navigable  to  its  present  capacity." 

So  here  the  ocean  is  ever  present.  The  possibility  of  using  it  as  an  avenue  of  transportation  is  ever  open,  and  the  fact  that  it  will 
be  used,  if  for  any  considerable  length  of  time  the  defendants  maintain  rates  which  are  so  high,  or  so  adjusted  as  to  render  it  profitable 
for  shippers  to  resort  to  that  means  of  transportation,  is  never  doubtful. 

The  system  of  blanketmg  the  transcontinental  rates  from  pomts  east  of  the  Missoin-i  River  is  the  result 
of  this  water  competition,  active  and  potential;  and  so,  too,  is  the  difference  between  the  through  rates  to 
and  from  the  Pacific  coast  terminals  as  compared  with  the  charges  to  and  from  the  mtermecUate  points  in  the 
West.  The  rate  percentages  estabhshed  in  the  Reno  and  Spokane  decisions  by  the  Interstate  Conunerce 
Commission,  to  apply  upon  westbound  transcontinental  traffic, express  the  judgment  of  the  commission  as  to 
the  force  that  may  well  be  allowed  water  competition  in  controUmg  the  railroad  tariflfs.' 

As  the  evidence  just  presented  clearly  indicates,  the  transcontmental  railroad  tariffs  have  been,  and  now 
are,  influenced  by  the  rates  charged  by  the  coast-to-coast  water  Imes;  but  it  is  equally  true  that  the  rates  of 
the  steamship  fines  operating  via  Tehuantepec  and  Panama  are  to  a  large  extent  made  with  reference  to  the 
tariffs  of  the  transcontinental  railroads.  The  competition  of  the  water  routes  with  the  rail  Imes,  and  the  recur- 
ring rate  wars  have,  in  the  past,  forced  the  transcontinental  railroads  to  adopt  the  sj^stem  of  rate  making  now  in 
force;  but  during  recent  years  rate  wars  have  been  avoided;  the  transcontmental  railroads  have  not  been 
under  pressure  to  fight  against  the  water  lines  for  traffic;  the  tonnage  moving  by  rail  has  been  large  and  has 
rapidly  increased;  and  the  policy  of  the  railroads  has  been  to  maintam,  and  where  practicable,  to  raise  the 
established  level  of  rail  tariffs. 

Since  1907,  when  the  American-Hawaiian  Line  began  its  service  via  Tehuantepec,  there  has  been  a  large 
increase  in  the  water-borne  intercoastal  tonnage;  but  there  has  been  no  consequent  general  decline  in  the 
charges  by  the  transcontinental  railroads.  It  was  stated  by  the  Interstate  Commerce  Commission  in  1911, 
in  the  Reno  decision,^  that  "Out  of  1,535  commodity  rates  compared  by  the  carriers,  it  appears  that  no  change 
has  taken  place  since  December  1,  1906,  as  to  696  of  such  commodities,  reductions  have  been  effected  in  287, 
advances  and  reductions  as  to  132,  and  advances  as  to  418.  Of  the  items  increased,  the  rates  on  318  commodities 
were  increased  from  the  whole  eastern  blanket." 

The  relation  that  has  recently  prevailed  between  the  rates  of  the  mtercoastal  water  lines  and  the  trans- 
continental rail  tariffs  is  indicated  by  a  statement  made  by  the  assistant  to  the  vice  president  of  the  Southern 
Pacific  in  the  testimony  taken  by  the  Interstate  Commerce  Commission  in  the  Reno  case.  The  statement,  which 
was  an  answer  to  the  question  whether  the  water  Imes  controlled  the  transcontijiental  rates,  was  "I  befieve 
the  rail  Imes  control  the  makmg  of  their  own  rates,  and  when  we  say  to-day  that  we  do  not  wish  to  go  any  lower, 
that  incUcates  our  disposition  m  that  regard  m  maldng  the  rates."  The  same  official  also  stated,  "I  have  never 
seen  a  tariff  of  the  American-Hawaiian  Lme,  because  they  have  never  been  pubfished.  They  are  simply  based 
on  our  rates  as  the  basis  of  theirs." 

1  See  above,  p.  59;  also  PI.  B  above.  '  Railroad  Commission  of  Nevada  v.  Southern  Paciflc  Co.,  et  al.,  21 1.  C  C.  Reps.,  354. 


74  PANAMA  CANAL  TKAFFIC  AND  TOLLS. 

The  president  of  the  American-Hawaiian  Line,  in  testifj-mg  before  the  Senate  Committee  on  Interoceanic 
Canals  in  1910,  spoke  as  follows:'  "We  are  friendly  with  them  (the  railroad  trafl&c  managers).  We  discuss 
rates.  I  don't  know  of  any  other  business  m  the  world  where  competitors  don't  get  together  and  talk  matters 
over.  We  are  not  tied  up;  we  are  not  committed.  We  do  as  we  please,  absolutely  untrammeled.  *  *  * 
Our  traffic  manager  doesn't  attend  the  conferences  of  the  railroads,  but  he  goes  to  Chicago  and  gets  his  ear 
pretty  close  to  the  ground.  That's  liis  business."  In  answer  to  the  question,  "  To-day,  as  I  understand  it, 
you  frankly  admit  that  you  follow  more  or  less  what  the  transcontinental  railroads  deterrmne?"  he  said: 
"Certainly,"  but  expressed  the  view  that  the  water  lines  would  dominate  rates  after  the  canal  is  open  and  after 
they  carry  the  bulk  of  the  strictly  transcontinental  traffic."  It  is  also  the  opinion  of  the  Interstate  Commerce 
Commission,  expressed  in  the  Spokane  decision,  that  "Since  the  advent  of  the  American-Hawaiian  Line  there 
has  been,  not  perhaps  a  definite  agreement  between  it  and  the  I'ail  lines,  but  a  general  understanding  that  such 
rates  should  be  maintained  b}"  water  as  compared  with  rates  by  rail  as  would  give  to  the  vessels  a  reasonable 
amoimt  of  traffic  from  the  immediate  vicinity  of  New  York." 

That  the  intercoastal  water  lines  should  now  tend  to  adjust  their  rates  with  reference  to  the  established 
level  of  railroad  tariffs  is  in  accordance  with  a  general  economic  law.  In  any  business  or  industry  where  the 
major  share  of  the  business  is  handled  by  one  group  of  concerns  the  smaller  individual  competitors  normally 
make  their  charges  with  reference  to  the  prices  established  by  the  concerns  doing  the  larger  share  of  the  business. 
More  than  four-fifths  of  the  transcontmental  traffic  westbound  and  eastbound,  until  1911,  was  handled  by  rail 
and  less  than  one-fifth  by  the  water  carriers;  and  it  naturally  follows  that  the  level  of  rail  rates  influences  the 
charges  of  the  carriers  by  water. 

Though  the  fact  may  seem  paradoxical,  it  is  not  to  be  inferred  fi'om  the  preceding  analysis  either  that  the 
railroad  rates  are  not  or  are  not  to  be  influenced  by  the  charges  of  the  water  lines,  or  that  there  is  now  or  is  to 
be  no  effective  competition  among  the  intercoastal  carriers  by  water.  The  transcontinental  rail  and  inter- 
coastal water  rates  are  and  will  be  made  with  reference  to  each  other.  There  will  probably  be  no  fixed  percentage, 
or  general  differential,  relation  between  the  rail  and  water  charges.  Under  present  conditions  the  rates  via 
Panama  and  Tehuantepec  are  from  20  to  60  per  cent  below  the  transcontinental  rail  tariffs,  and  the  opening 
of  the  canal  will  so  reduce  the  costs  of  transportation  by  the  water  lines  and  wiU  so  increase  the  number  of 
carriers  and  the  volume  of  coastwise  shipping  as  to  make  a  still  greater  difference  between  the  rail  and  water 
rates.  The  future  level  of  rail  tariffs  must  necessarily  be  estabhshed  with  reference  to  the  rates  charged  by 
water. 

Moreover,  while  it  is  to  be  expected  that  the  competition  among  the  coast-to-coast  steamship  lines  will  be 
regulated  by  conferences,  formal  or  informal,  of  the  interested  lines,  there  ■will  none  the  less  be  an  incentive 
on  the  part  of  each  steamship  company  to  increase  its  tonnage.  There  will  be  the  regulated  competition  among 
the  steamship  lines  that  generally  exists  among  rival  carriers,  and  rates  vnl\  thereby  be  kept  below  the  maximum 
charges  that  the  traffic  ■nill  bear.  For  a  part  of  the  water-borne  traffic  the  cost  of  shipping  by  chartered  vessels 
will  regulate  the  rates  charged  by  the  regular  steamship  lines,  but  for  most  of  the  traffic  shipped  by  water 
the  rates  will  be  such  as  the  regulated  competition  of  the  steamship  lines  or  as  Government  control  (if  the  coast- 
to-coast  water  carriers  should  be  made  subject  to  the  Interstate  Commerce  Commission)  may  estabhsh.  The 
level  below  which,  and  with  reference  to  which,  the  rates  charged  by  the  coast-to-coast  steamship  lines  will  be 
fixed  will  be  the  stable  tariffs  of  the  transcontinental  railroads. 

» Senate  Hearings  on  bill  3428,  Feb.  10, 1910,  p.  90.  '  Ibid.,  p.  97. 


panajma  canal  traffic  and  tolls.  75 

IV. — Transcontinental  Rates  to  and  from  Interior  Points:  Effect  of  Water  Competition. 
A.  rates  by  rail  and  water  to  and  from  interior  points  in  the  east  and  west. 

The  steamship  lines  now  engaged  in  the  coast-to-coast  business  obtain  a  part  of  their  freight  from  interior 
points  in  the  Eastern  States  for  shipment  to  the  Pacific  coast.  The  manifests  of  cargo  show  that  a  small  tonnage 
is  obtained  from  places  as  far  west  as  Chicago  and  St.  Louis,  and  also  state  that  some  of  the  westbound  freight 
shipped  by  water  is  destined  to  interior  points  in  the  western  part  of  the  United  States.  The  great  bulk  of 
westbound  freight,  however,  originates  at  the  eastern  terminals  of  the  water  lines — at  New  York  and  points  not 
far  distant  therefrom — and  is  destined  to  the  Pacific  coast  terminals  and  to  places  not  far  inland.  The  evidence 
secured  by  the  Interstate  Commerce  Commission  in  the  Spokane  and  other  cases  led  the  commission  to  state 
that  "The  principal  movement  by  water  is  from  the  Atlantic  seaboard  itself,  from  New  York  and  from  points 
having  water  communication  with  New  York,  and  from  interior  territory  immediately  contiguous.  There  is  a 
considerable  movement  as  far  inland  as  Buffalo  and  Pittsburgh,  and  an  occasional  movement  from  Detroit, 
Chicago,  and  similar  points.  A  movement  of  starch  from  Cedar  Rapids,  Iowa,  of  considerable  proportions  was 
shown,  but  generally  speaking,  up  to  the  present  time,  comparatively  little  traffic  originating  west  of  the  Buffalo- 
Pittsburgh  zone  has  reached  the  Pacific  Coast  by  water."  '  The  present  eastbound  freight  of  the  steamship 
lines,  to  a  larger  degree  than  is  true  of  their  westbound  tonnage,  originates  and  terminates  near  the  seaboard. 

The  competition  of  the  intercoastal  water  lines  with  the  railroads  has  benefited  the  sections  near  the  Atlantic 
and  Pacific  seaboards  more  than  the  interior  section;  because,  for  most  shipments  to  and  from  interior  points 
via  a  combined  rail  and  water  route,  the  thi'ough  rate  is  the  sum  of  the  rail  rate  to  or  from  the  coast  and  the  rate 
by  water  from  coast  to  coast.     There  are  also  transshipment  or  rehandling  charges. 

Table  XIV,  compiled  by  the  division  of  tariffs  of  the  Interstate  Commerce  Commission,  contains  a  tabulation 
of  the  rail  rates  from  Philadelphia,  Pittsburgh,  Cincinnati,  Indianapolis,  Chicago,  St.  Louis,  Kansas  City,  St.  Paul, 
and  Omaha  to  New  York  on  the  same  commodities  as  are  listed  in  Table  IX,  in  which  the  transcontinental  coast- 
to-coast  rates  of  the  railroads  and  the  water  lines  are  quoted.  Though  the  rail  rates  are  not  in  direct  proportion 
to  distance,  the  charges  between  the  interior  points  and  the  seaboard  are  greater  the  farther  the  inland  place  of 
origin  or  destination  is  from  New  York.  For  points  west  of  the  Pittsburgh-Buffalo  zone  the  rail  rates  to  New 
York  soon  become  so  high  that  most  goods  move  directly  to  the  Pacific  coast  by  rail  at  rates  which  are  usually 
the  same  from  all  places  east  of  the  Missouri  River.  On  some  commodities  the  rail  rates  to  the  Pacific  are  less 
from  the  Central  West  than  from  the  Eastern  States. 

The  addition  of  the  rail  rates  from  the  interior  to  New  York  to  the  intercoastal — if  always  made  m  fixing 
through  rates — would  have  prevented  interior  pomts  beyond  Pittsburgh  and  Buffalo  from  making  as  many 
shipments  as  have  been  made  via  the  water  lines  between  the  Atlantic  and  Pacific  coasts.  Fortunately  for  the 
interior  eastern  shippers,  the  coastwise  steamship  lines  sometimes  absorb  all  or  a  part  of  the  rail  rates  to  and 
from  the  seaboard  on  westbound  sliipments. 

1  City  of  Spokane  et  al  v.  Northern  Pacific  Railway  Company  et  al,  21 1.  C.  C.  Reps.,  420. 
34998°— 12 6 


76 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


TvBLE  XIV  -STATEMENT  SHOWING  CLASS  AND   COMMODITY   RATES  TO  NEW  YORK,   N.   Y.,   FROM   PHILADEL- 
PHIA,   PITTSBURGH,    CINCINNATI,    INDIANAPOLIS,    CHICAGO,    ST.    LOUIS,    K.\NSAS    CITY,    ST.    PAUL,    AND 

OiLVH  \. 

(Rates  are  in  cents  per  100  pounds,  except  as  noted.] 


ToNew  York,  N.  Y. 


Classes: 

First 

Second 

Third 

Fourth 

Fifth 

Sixth 

COMMODITIES. 

Harvesters  and  reapers,  k.  d..:  plows  and  harrows,  k.  d.: 

Carload 

Less  than  carload 

Beer: 

Carload 

Less  than  carload 

Boots  and  shoes: 

Carload 

Less  than  carload 

Cement  (building): 

Carload 

Less  than  carload 

Cereal  breakJast  foods: 

Carload 

Less  than  carload 

Chinaware  (value,  120  per  hundredweight): 

Carload 

Less  than  carload 

Cotton  underwear: 

Carload 

Less  than  carload 

Green  coffee: 

Carload 

Less  than  carload 

Roasted  coffee: 

Carload 

Less  than  carload 

Crackers: 

Carload 

Less  than  carload 

Creamery  and  cheese  factory  machinery: 

Carload 

Less  than  carload 

Cotton  sheets  and  sheetings  (cotton  piece  goods): 

Carload 

Less  than  carload 

Stoneware  and  crockery  (in  boxes  or  barrels): 

Carload 

Less  than  carload 


Philadel- 
phia, Pa. 


Pitts- 
burgh, Pa. 


Cincin- 
nati, Ohio. 


30i 
56i 


Chicago, 


37J 
32J 


Kansas 
City,  Mo. 


147J 
121 
935 


54i 
91J 


54i 
91i 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


77 


Table  XIV STATEMENT  SHOWING  CLASS  AND  COMMODITY  RATES  TO  NEW  YORK,  N.  Y.,  FROM  PHILADEL- 
PHIA, PITTSBURGH,  CINCINNATI,  INDIANAPOLIS,  CHICAGO,  ST.  LOUIS,  KANSAS  CITY,  ST.  PAUL,  AND 
OMAHA— Continued. 

[Rates  are  in  cents  per  100  pounds,  except  as  noted.] 


To  New  York,  N.  Y. 


30J 

32} 

43i 

46} 

56} 

60} 

97} 

104i 

32} 


COMMODITIES — Continued. 
Trolley  wire  (copper): 

Carload 

Less  than  carload 15  30    '  43}  46}  50  58} 

Cane-seated  chairs  (boxed): 

Carload 

Less  than  carload 

Common  window  glass: 

Carload 

Less  than  carload 

Mechanics'  tools  (boxed): 

Carload 12  21  30}  32} 

Less  than  carload 15  30  43}  46} 

Harness  and  saddlery: 

Carload 

Less  than  carload 

Girders,  bars  and  plates,  No.  11  or  heavier: 

Carload 

Less  than  carload 

Steel  rails: 

Carload 

Less  than  carload 

Iron  and  steel  blooms,  billets,  and  ingots: 

Carload ' 

Less  than  carload 

Plate'  and  sheet  (boiler)  Nos.  11  to  16: 

Carload 

Less  than  carload 

Pipe  and  fittings: 

Carload 

Less  than  carload 12  19  30} 

Whisky  (in  wood): 

Carload 12  21  30} 

Less  than  carload 

Condensed  milk: 

Carload 12  21  30} 

Less  than  carload 15  30  43} 

Nails  and  spikes: 

Carload 

Less  than  carload 

Oil-well  supplies: 

Carload 

Less  than  carload 

•  In  cents  per  2,240  pounds.  '  Plate  from  Philadelphia  9  cents;  from  Pittsburgh,  C.  I.,  16  cents;  and  from  Pittsburgh,  L.  c 


Philadel-  i     Pitts-        Cincin-     Indianap-    Chicago, 
phia,  Pa.  ,  burgh.  Pa.  nati,  Ohio,  oils,  Ind. 


St.  Louis,      Kansas      St.  Paul,     Omaha 
Mo.         City,  Mo.       Minn.         Nebr. ' 


191J 


147} 


882^ 


118} 
1.,  19  cents  per  100  pounds. 


78 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  XIV — STATEMENT  SHOWING  CLASS  AND  COMMODITY  RATES  TO  NEW  YORK,  N.  Y.,  FROM  PHILADEL- 
PHIA, PITTSBURGH,  CINCINNATI,  INDIANAPOLIS,  CHICAGO,  ST.  LOUIS,  KANSAS  CITY,  ST.  PAUL,  AND 
OMAHA— Continued . 

[Rates  are  in  cents  per  lOO  pounds,  e.xcept  as  noted.] 


To  New  York,  N.  Y. 


COMMODITIES — continued. 
Paints  (dry)  in  wood: 

Carload 

Less  than  carload 

Paints  (in  oil): 

Carload 

Less  than  carload 

Building  paper: 

Carload 

Less  than  carload 

ParaiEne  wax,  carload 

Paraflfine  wax  (in  wood),  less  than  carload 

Pickles,  carload 

Pickles  (in  wood),  less  than  carload 

Sewing  machines,  boxed  or  crated: 

Carload 

Less  than  carload 

Soap: 

Carload 

Less  than  carload 

Stamped  ware,  carload 

Stamped  ware  (nested  solid),  less  than  carload 

Stoves  (cooking  and  heating): 

Carload 

Less  than  carload 

Tin  plate: 

Carload 

Less  than  carload 

Tin,  sheet: 

Carload 

Less  than  carload 

Tobacco,  unmanufactured,  in  hogsheads,  barrels,  or  cases: 

Carload 

Less  than  carload 

Malt  extract,  carload 

Malt  extract  (in  wood),  less  than  carload 


Philadel-       Pitts-         Cincin-     Indianap-      Chicago,    St.  Louis,     Kansas      St.  Paul,     Omaha, 
phia,  Pa.   burgh.  Pa.  nati,  Ohio,   oils,  Ind.  111.  Mo.         City,  Mo.       Mmn.         Nebr. 


17J 

18} 

34S 

37} 

24 

25} 

43J 

46} 

23} 

34} 

46} 

81} 

32 

49 

58} 

93} 

35 

57 

58} 

82 

58} 

93} 

87} 

147} 

34} 
81} 
51* 


1471 


93} 


Tariff  authority; 

Class  rnfes.— Philadelphia  to  New  York,  P.  R.  R.,  G.  O.,  I.  C.  C.  553;  Pittsburgh  to  New  York,  P.  R.  R.,  G.  O.,  I.  C.  C.  3107;  Chicago  and  Cincinnati  to  New  York, 
C,  C,  C.  &  St.  L.  Ry.,  I.  C.  C,  5893;  St.  Louis  to  New  York,  Cameron's  I.  C.  C.  D-62;  Indianapolis  to  New  York,  C,  C,  C.  &  St.  L,,  I.  C.  C.  5893;  Kansas  City  and 
Omaha  to  New  York,  C,  C,  C.  &  St.  L.,  I.  C.  C.  5893,  Cameron's  L  C.  C.  D-62,  and  Hosmer's  I.  C.  C.  A-243;  and  St.  Paul  to  New  York,  Hosmer's  I.  C.  C.  A-244  and 
C,  C,  C.  &  St.  L.,  I.  C.  C.  5893. 

Commodity  rates.— To  New  York,  from  Philadelphia,  P.  R.  R.,  G.  O.,  I.  C.  C.  553,  3794,  and  G-2994;  from  Pittsburgh,  P.  R.  R.,  G.  O.,  I.  C.  C.  3107  and  O.  0. 1277; 
from  Cincinnati,  Indianapolis  and  Chicago,  Big  4,  I.  C.  C.  5893  and  5891;  from  St.  Louis,  Cameron's  D-62;  from  Kansas  City  and  Omaha,  Hosmer's  A-243,  Cameron's 
D-62,  and  Big  4,  5893;  from  St.  Paul.  Big  4,  5893  and  Hosmer's  A-244. 

Note. — Rates  from  St.  Louis  and  points  east  of  Mississippi  River  governed  by  Official  Classification;  rates  from  Kansas  City,  St.  Paul,  and  Omaha  made  on  Mis- 
sissippi River  and  Chicago  Combinations;  proportions  west  of  Chicago  and  Mississippi  River  governed  by  Western  Classification. 


PANAilA  CANAL  TRAFFIC  AND  TOLLS.  79 

The  Panama  Railroad  Steamship  Line,  which  makes  the  westbound  rates  applying  over  its  line  and  Pacific 
coast  connections,  deals  as  follows  with  charges  from  interior  eastern  points.  From  its  New  York  pier  to  Pacific 
coast  points  the  following  "minimum  rates"  apply: 

Per  100  pounds. 

To  East  San  Pedro,  Cal $0.  50 

To  Los  Angeles,  Cal 55 

To  Oakland,  Cal 50 

To  Portland,  Oreg '. 52J 

To  Sacramento,  Cal 55 

To  San  Francisco 50 

To  Stockton,  Cal 55 

To  all  other  Pacific  coast  ports 60 

The  tariff  then  provides  that,  except  in  case  of  special  rates  from  New  York  pier  or  of  rates  which  do  not 
exceed  the  above  minima,  the  water  rates  quoted  "may  apply  from  interior  points,  and  when  a  rate  is  at  least 
20  cents  higher  than  the  minimum,  the  Panama  Rail  Road  Co.  will  assume  the  charges  from  shipping  point  to 
New  York  pier  not  exceeding  20  cents  per  100  pounds,  any  excess  over  this  absorption  to  be  shown  on  biU  of 
lading  as  'advance  charges'  to  be  paid  by  shippers  or  consignees  as  the  case  may  be.  When  a  freight  rate  is 
not  at  least  20  cents  higher  than  the  minimum,  the  Panama  Rail  Road  Co.  will  assume  the  difference  between 
the  minimum  and  said  rate."  For  example.  Table  XIV  shows  that  the  carload  rate  on  harvesters  and  reapers, 
knocked  down,  from  Philadelpliia  to  New  York  is  lOM  cents,  which  is  absorbed  hj  the  steamship  fine ;  because  the 
water  rate  on  harvesters  and  reapers  from  New  York  pier  is  88  cents,  or  more  than  20  cents  above  the  theoretical 
minimum  charge  of  50  cents  on  any  commodity  from  New  York  to  San  Francisco.  So  also  is  the  18-cent  rate 
from  Pittsburgh  absorbed;  but  the  Cincinnati  rate  of  26  cents  is  absorbed  olily  to  the  extent  of  20  cents,  the 
shipper  or  consignee  being  obhged  to  pay  the  excess.  The  28-cent  Indianapohs  rate  is  absorbed  only  to  the 
amount  of  20  cents,  and  the  same  is  true  of  the  30-cent  Chicago  rate,  etc.  When  the  water  rate  on  the  com- 
modity in  question  does  not  exceed  the  theoretical  minimum  water  rate  by  20  cents,  the  Panama  Rail  Road 
Co.  absorbs  the  rail  rate  only  to  the  extent  of  the  excess  of  the  actual  water  rate  over  the  minimum  water  rate, 
and  if  the  actual  rate  is  only  equal  to,  or  is  less  than,  the  minimum,  the  shipper  or  consignee  is  obhged  to  pay 
the  entire  rail  charge  from  the  inland  point  to  New  York. 

The  pohcy  of  the  American-Hawaiian  Steamsliip  Co.  is  to  "make  its  rates  from  the  terminals."  '  It  does 
not  absorb  any  of  the  rail  rates  to  New  York;  but  as  the  rates  of  this  company  are  not  published  it  is  probable 
that  traffic  of  large  sliippers  from  interior  points  is  soUcited  at  such  rates  from  New  York  to  the  Pacific  coast  as 
to  allow  the  inland  sliippers  to  j)ay  the  rail  charges  to  New  York  and  j'et  enjoy  a  favorable  through  rail-and-water 
rate. 

At  the  Pacific  destination  of  westbound  traffic  the  Panama  Line  and  connections  absorb  the  rates  to  certain 
points  not  on  the  coast.  The  tariffs  apply  ahke  to  the  following  points:  San  Francisco,  Sacramento,  Stockton, 
Oakland,  Berkeley,  Los  Angeles,  San  Diego,  Santa  Barbara,  San  Pedro,  Redondo,  Vancouver,  Portland,  Astoria, 
Seattle,  Tacoma,  Port  Townsend,  Everett,  Anacortes,  New  Whatcom,  and  Victoria.  As  is  shown  above,  differ- 
ent minima  water  rates  prevail  from  the  Atlantic  seaboard  to  these  points  on  or  near  the  Pacific  coast;  but  upon 
any  particular  commodity  the  same  actual  rates  are  quoted  from  New  York  to  all  the  above-named  Pacific 
destmations.  The  actual  rate  on  any  given  article  sliipped  from  an  interior  point  near  the  Atlantic  via  New 
York  to  any  one  of  the  Pacific  destinations  will  depend  both  upon  the  amount  of  rail  charge  from  the  interior 
point  to  the  Atlantic  seaboard  absorbed  by  the  steanisloip  fines  and  also  upon  the  nunimum  water  rate  from 
New  York  to  the  Pacific  destination.  The  minimum  bill  of  lading  for  single  shipments,  fikewise,  varies  from 
$1  to  $1.50.  The  American-Hawaiian  Line  does  not  absorb  the  rail  rates  from  the  Pacific  coast  terminals  to 
any  interior  destinations. 

Table  XV  states  the  raU  rates,  on  the  same  hst  of  articles  as  is  iacluded  in  the  former  tables  of  westbound 
rates,  from  San  Francisco  to  Sacramento,  Stockton,  Fresno,  Reno,  Salt  Lake  City,  and  Denver.  Since  no 
interior  rates  beyond  Sacramento  and  Stockton  are  absorbed  by  any  line,  most  of  the  traffic  that  reaches  the  west 
coast  by  water  does  not  go  far  inland,  although  some  freight  is  carried  to  points  as  distant  as  Reno,  Nev. 

Table  XVI  gives  the  rail  rates  from  Seattle  to  Spokane  and  WaUa  Wafia,  Wash.,  and  to  Butte  and  Helena, 
Mont.  The  eastbound  freight  movement  vin  combined  rail-and-water  from  and  to  interior  points  in  the  West 
bemg  relatively  light,  it  has  not  been  thought  necessary  to  present  a  detailed  compilation  of  rail  rates  between 
inland  points  and  other  Pacific  seaboard  terminals. 

1  G.  S.  Dearborn.    Testimony,  Jan.  24, 1912,  in  Hearings  on  Panama  Canal  by  House  Committee  on  Interstate  and  Foreign  Commerce. 


80 


PANAJMA  CANAL  TRAFFIC  AND  TOLLS. 


The  Sunset-Gulf  Line  from  New  York  to  the  Pacific  coast  takes  traffic  from  interior  eastern  points  via  New 
York  and  New  Orleans  or  Galveston  at  through  rates  equal  to  the  all-rail  rate  from  the  Ulterior  eastern  points 
to  the  Pacific  coast.  It  thus  absorbs  the  rail  rate  to  New  York  in  that  the  rate  is  paid  out  of  the  through  charge. 
The  Sunset-GuK  route,  however,  is  to  be  classed  with  the  transcontinental  rail  lines,  and  not  with  the  inter- 
coastal  water  lines — because  its  rates  are  the  same  as  those  by  the  all-rail  carriers. 

Table  XV.— STATEMENT   SHOWING   CLASS   AND   COMMODITY   RATES   FROM  SAN   FRANCISCO   TO   SACRAMENTO, 
STOCKTON,  FRESNO,  RENO,  SALT  LAKE  CITY,  AND   DENVER. 

[Quoted  by  Division  of  Tariffs,  I.  C.  C.    Rates  are  in  cents  per  100  pounds  except  as  noted.] 


To— 

From  San  Francisco. 

Sacramen- 
to, Gal. 

Stockton, 
Cal. 

Fresno, 
Cal. 

Reno, 

Nev. 

Salt  Lake 
City,  Utah. 

Denver, 
Colo. 

Classes. 

First                

24 
21 
18 
16 
13 
13 
13 
11 
9i 
9J 

13 
18 

13 
18 

13 
18 
13 
24 

11 
16 

13 
16 

13 
24 

1             '' 

10 
10 
9 
9 

7 

1120 
Ulo 
1110 
1105 

9 

7 
9 

9 
10 

10 

Ills 
9 

9 

7 
10 

10 

55 

51 

47 

44 

■720 

1670 

1460 

1405 

1350 

1295 

1670 
47 

1670 

47 

1720 
47 

1720 
55 

55 

1405 
44 

1720 
44 

1720 
55 

65 

97 

81 

73 

59 

50J 

50J 

41 

35 

31 

27 

50J 
73 

SOi 
73 

50 
73 
50J 
97 

97 

35 
59 

50i 
59 

50§ 
97 

97 

154 

131 

115J 
96 
79J 
79i 
62 
56 
46 
38i 

79J 
1155 

79i 
IISJ 

55 
115J 

794 
154 

154 

56 
96 

44 
96 

79i 
154 

154 

300 

260 

Third                

200 

175 

Fifth..                  

160 

A                       

140 

B                                    

120 

C                                           

95 

D                       .             

85 

E                          

80 

COMMODITIES. 

Harvesters  and  reapers; 

Plows  and  harrows: 

125 

20O 

Beer: 

100 

150 

100 

150 

Boots  and  shoes: 

275 

Cement  (building): 

95 

175 

Cereal  breakfast  foods: 

90 

175 

Chinaware  (val.  $20  per  cwt.): 

160 

300 

Cotton  underwear: 

Less  than  carload 

200 

Per  2,000  pounds. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


81 


Table  XV STATEMENT  SHOWING   CLASS   AND   COMMODITY   RATES   FROM   SAN  FRANCISCO  TO  SACRAMENTO, 

STOCKTON,  FRESNO,  RENO,  SALT  LAKE  CITY,  AND  DENVER— Continued. 


Tc 

From  San  Francisco. 

Sacramen- 
to, Gal. 

Stockton, 
Cal. 

Fresno, 
Cal. 

Reno, 

Nev. 

Salt  Lake 
City,  Utah. 

Denver, 
Colo. 

COMMODITIES— continued. 
Green  coffee: 

13 
16 

13 
16 

16 
21 

13 
21 

24 
24 
13 
16 

16 
21 
18 
24 

13 
16 

24 

1       » 

13 
16 

13 
16 

9i 
16 

13 
16 

7 
9 

7 
9 

9 
10 

7 
10 

10 

10 

9 

1 120 

9 
10 

9 
10 

9 
10 

10 

7 
9 

9 

1  110 
9 

9 

1720 
44 

1720 
44 

44 
51 

>670 
SI 

55 

55 

I  460 

44 

44 
51 
47 
55 

1720 
44 

55 

65 

1720 
44 

1  720 
44 

1350 
44 

1720 
44 

60^ 
59 

50i 
59 

59 

81 

50J 
81 

97 
97 
41 
59 

59 
81 
73 
97 

50i 
69 

97 

97 

5  800 
59 

605 
69 

31 
59 

50J 
59 

79i 
96 

79J 
96 

96 

nsi 

79i 
131 

154 
154 
62 
96 

96 
131 

70 
154 

70 
96 

154 

154 

3  1,025 
96 

62 
96 

46 
96 

62 
96 

75 

120 

Roasted  coffee: 

75 

120 

Crackers: 

175 

260 

Creamery  and  cheese  factory  machinery: 

150 

260 

Cotton  sheets  and  sheeting  (cotton  piece  goods): 

110 

160 

85 

150 

Trolley  wire  (copper): 

175 

260 

200 

300 

125 

175 

Mechanics  tools  (bo.xed): 

300 

300 

Steel  rails: 

160 

175 

160 

175 

Iron  and  steel  blooms  and  billets: 

85 

175 

160 

175 

I  Per  2,000  pounds. 


'  In  lots  of  not  less  than  5,000  poimds,  per  100  pounds,  SI. 15. 


'  Per  2,240  pounds. 


82 


PANAMA  CANAL  TKAFFIC  AND  TOLLS. 


Table  XV.— STATEMENT  SHOWING  CLASS  AND  COMMODITY  RATES  FROM    SAN  FRANCISCO  TO  SACRAMENTO, 
STOCKTON,  FRESNO,  RENO,  SALT  LAKE  CITY,  AND  DENVER— Continued. 


To— 

From  San  Francisco. 

Sacramen- 
to, Cal. 

Stockton, 
Cal. 

Fresno, 
Cal. 

Reno, 

Nev. 

Salt  Lake 
City,  Utah. 

Denver, 
Colo. 

COM  MODiTiES — cont  inued . 
Pipe  and  fittings: 

13 
16 

21 
21 

13 
16 

13 
16 
13 
24 

13 
16 

134 

18 

13 
18 

13 

16 

18 
24 

13 
16 
16 
18 

13 
18 

13 
16 

16 

9 

10 
10 

9 

7 
9 
7 
10 

9 

7 
9 

7 
9 

7 
9 

9 

10 

9 
9 
9 

7 
9 

9 
9 

1720 
44 

51 
51 

1720 
44 

1720 
44 

1670 
55 

1720 
44 

1720 
47 

1720 
47 

1720 
44 

47 
55 

1720 
44 
44 
47 

1720 
47 

1720 
44 
44 

50i 
59 

81 
81 

50i 
59 

50J 
59 
50i 
97 

50i 
59 

50J 
73 

60S 
73 

50J 
59 

73 
97 

50J 
59 
59 
73 

50J 
73 

50J 
59 
59 

f           =55 
1           3  60 
I             96 

100 
131 

96 

62 
96 
79J 
154 

79i 
96 

52 
115J 

60 
115i 

77 
96 

115J 
154 

63 
96 
96 
115i 

79i 
115  J 

79J 
96 
96 

»75 

»160 

Whisky  (in  wood): 

175 

Condensed  milk: 

Nails,  spikes,  and  wire: 

Paints  (in  oil): 

Building  paper: 

Paraffine  wax: 

PicMes  (in  wood): 

Sewing  machines  (boxed  or  crated): 

Carload 

200 

Soap: 

175 

Stoves  (cooking  and  heating): 

Carload 

160 

200 

Tin  plates  and  sheets: 

175 

175 

1  Per  2,000  poimds.  =  Applies  on  pipe,  iron  or  steel.  '  AppUes  on  pipe  fittings. 

Authority:  San  Francisco  to  Sacramento  and  Stockton  per  Sou.  Pac.  Co.  I.  C.  C.  2631;  to  Fresno  per  Sou.  Pac.  I.  C.  C.  2622;  to  Reno,  Nev.,  Sou.  Pac.  I.  C.  C.  3432;  to 
Salt  Lake  City  Gomph's  I.  C.  C,  57;  and  to  Denver  T.  C.  F.  B.  I.  C.  C,  926. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


83 


Table  XVI.— STATEMENT    SHOWING    CLASS    AND    COMMODITY    RATES    FROM    SEATTLE    TO     SPOKANE,   WALLA 

WALLA,  BUTTE,  AND  HELENA. 

[Quoted  by  Division  of  Tariffs,  I.  C.  C.    Rates  are  in  cents  per  100  pounds,  except  as  noted.] 


From  Seattle,  Wash. 


Spokane,  Wash.      WaUa  Walla, Wash.         Butte,  Mont 


Helena,  Mont. 


Classes: 

First 

Second 

Third 

Fourth 

Fifth 

A 

B 

C 

D 

E 

COMMODITIES, 

Harvesters  and  reapers,  plows  and  harrows 

Beer 

Malt  extract 

Boots  and  shoes 

Cement  (building) 

Cereal  breakfast  foods 

Chinaware,  value  $20  per  hundredweight 

Cotton  underwear 

Green  coffee 

Roasted  coffee 

Crackers '. 

Creamery  and  cheese  factory  machinery 

Cotton  sheets  and  sheetings 

Stoneware  and  crockery 

Trolley  wire  (copper) 

Cane-seated  chairs  (1.  c.  1.,  boxed) 

Common  window  glass 

Mechanics'  tools  (boxed) 

Harness  and  saddlery 

Steel  rails 

Girders,  bars,  and  plates.  No.  11  or  heavier 

Iron  and  steel  blooms  and  billets 

Boiler  plate  and  sheet,  No.  11  to  16 

Pipe  and  fittings 

Whisky s.. 

Condensed  milk 

Nails,  spikes,  and  wire 

Oil-well  supplies  (I.  c.  I.,  n.  o.  s.) 

Paints 

Building  paper 

ParaiBne  wax 

Pickles  (I.  c,  I.,  in  wood) 


84 


PANAJMA  CANAL  TRAFFIC  AND  TOLLS. 


Table   XVI STATEMENT   SHOWING    CLASS   AND    COMMODITY   RATES   FROM    SEATTLE    TO    SPOKANE,    WALLA 

WALLA,  BUTTE,  AND  HELENA— Continued. 


From  Seattle,  Wash. 


Spokane,  Wash.     Walla  Walla,  Wash.         Butte,  Mont.  Helena,  Mont, 


COMMODITIES— continued . 

Sewing  machines  (boxed  or  crated) 

Soap 

Stamped  ware 

Stoves  (cooking  and  heating) 

Tin  plates  and  sheets 

Tobacco  (unmanufactured) 

Authority:  From  Seattle  to  Spokane  and  Walla  Walla,  per  N.  P.  Ry.,  I.  C.  C. 


to  Butte  and  Helena,  per  N.  P.  Ry.,  I.  C.  C.  4961 


B. EFFECT    OF    WATER    COMPETITION    ON    KATES    TO    AND   FROM    INTERIOR    POINTS. 

Neither  the  trunk  hue  nor  the  transcontinental  railwaj^s  have  favored  the  shipment  of  commodities  from 
the  Middle  West  to  the  Atlantic  seaboard  for  carriage  thence  by  water  to  the  Pacific  coast.  The  poUcy  of  the 
railway's,  generally,  under  the  leadership  of  the  western  Unes,  has  been  to  hold  to  the  all-rail  lines  the  traffic 
to  the  Pacific  coast  both  from  the  Atlantic  seaboard  and  from  interior  points. 

The  rivalry  of  the  railways  from  the  Central  West  to  the  Atlantic  with  those  from  the  Central  West  to  the 
Pacific,  and  the  industrial  competition  of  the  Mississippi  Valley  with  the  Eastern  States,  which  can  ship  to  the 
Pacific  coast  b}'  water  lines,  brought  about  the  system  of  blanket  rates  for  most  of  the  traffic  to  the  west  coast 
from  the  entire  section  east  of  the  Missouri.  The  competition  of  the  rail  and  water  fines  at  the  Atlantic  seaboard 
controlled  transcontinental  rail  rates  from  the  Eastern  States,  and  the  railroads  and  the  industries  of  the  Middle 
West  insisted  upon  reaching  the  Pacific  coast  on  equal  terms  with  the  railroads  and  mdustries  of  the  eastern 
section.  Upon  some  articles  the  rates  from  the  Central  West  are  lower  than  from  the  Atlantic  seaboard,  there 
being  some  grading  downward  of  rates  by  successive  lettered  rate  groups  westward  from  the  Atlantic  coast. 

The  poficy  of  the  carriers  interested  in  the  transcontinental  rail  traffic  from  the  East  and  from  the  Middle 
West,  and  the  influence  upon  rail  rates  exercised  by  the  intercoastal  water  Unes  is  concisely  explained  by  the 
Interstate  Commerce  Commission  m  the  decision  in  the  Spokane  case.  The  commission,  speaking  through 
Mr.  Prouty,  says: ' 

Carriers  maintain  the  same  transcontinental  rate  from  Chicago  as  from  New  York,  not  by  reason  of  the  direct  effect,  but  rather  as  an 
indirect  result  of  water  competition.  The  reason  for  this  will  be  best  understood  by  an  actual  illustration.  Assume  that  a  building 
requiring  the  use  of  a  large  amount  of  structural  steel  is  to  be  erected  in  San  Francisco.  That  steel  is  manufactured  both  at  the  seaboard 
and  in  Chicago.  That  which  is  made  at  the  seaboard  can  be  taken  by  water  from  the  point  of  origin  to  the  point  of  destination,  and  the 
rate  at  which  it  can  move  is  therefore  determined  by  water  competition. 

The  cost  of  producing  steel  is  the  same  at  both  points.  In  order,  therefore,  that  the  producers  may  stand  an  equal  chance  in  com- 
peting for  this  business  it  is  necessary  that  the  rate  from  both  points  should  be  the  same,  and  the  business  can  not  move  from  Chicago  unless 
the  rate  from  that  point  is  as  low  as  from  the  seaboard. 

The  Atchison,  Topeka  &  Santa  Fe  Railway  begins  at  Chicago.  If  this  steel  is  bought  at  Chicago  and  moves  by  that  line,  the  entfre 
freight  money  is  retained  by  it;  if,  upon  the  other  hand,  the  steel  is  bought  at  New  York,  moved  by  some  line  to  Chicago,  and  there  de- 
livered to  the  Santa  Fe,  that  line  receives  only  a  part  of  the  through  charge.  The  service  performed  by  it  is  the  same  in  either  case,  but 
the  amount  of  its  compensation  is  larger  when  the  freight  originates  at  Chicago.  It  is  therefore  for  the  interest  of  that  line  to  name  a  rate 
from  Chicago  which  will  originate  the  business  at  that  point  instead  of  allowing  it  to  originate  upon  the  seaboard.  The  interest  of  the  line 
from  New  York  to  Chicago  is  that  the  business  should  be  taken  up  at  New  York,  and  as  a  compromise  it  is  finally  agreed  to  apply  the  same 
rate  from  both  these  points.  This  clearly  shows  how  water  competition,  if  it  does  not  actually  extend  to  the  interior  point,  may  and  does 
dictate  the  rate  from  that  point. 

^\^lat  would  be  true  of  the  steel  entering  into  the  construction  of  this  building  is  true  also  of  almost  everj^  article  of  commerce  which 
moves  between  the  East  and  the  West.  The  Middle  West  to-day  manufactures  nearly  everything  which  is  produced  upon  the  Atlantic 
seaboard,  and  the  effect  of  this  policy  of  the  railroads  has  been  to  make  the  Middle  West  the  almost  exclusive  market  of  origin  for  the  inter- 
mountain  country  and  largely  for  the  Pacific  coast  itself. 

The  effect  of  water  shipments  upon  the  interior  has,  as  Commissioner  Prouty  states,  been  indii'ect  rather  than 
direct.     The  tonnage  of  transcontinental  traffic  carried  from  the  Mississippi  Valley  to  the  Atlantic  seaboard  for 


1211.  C.  C.  Reps.,  422. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  85 

shipment  thence  by  water  to  the  west  coast  has  been  relatively  small,  but  the  actual  or  possible  shipment  of  a 
relatively  large  volume  of  commodities  by  water  from  the  Atlantic  coast  has  controlled  the  rail  rate  from  the 
Central  West  to  the  Pacific.  Water  competition  has  exercised  less  influence  upon  eastbound  rail  rates  from  the 
western  section  to  the  Middle  West  and  the  East,  but  even  on  eastbound  traffic  most  rates  are  blanketed  over 
the  entire  region  east  of  the  Missomi  River.  There  is  more  grading  by  distance  of  eastbound  than  of  westbound 
rates,  but  the  difl^erence  between  the  eastbound  and  westbound  transcontinental  rate  systems  is  one  of  degi-ee, 
not  of  kind  or  of  principle. 

Such  has  been  the  past  efl^ect  of  intercoastal  water  transportation  upon  the  rates  of  the  transcontinental 
all-rail  lines.  There  remains  for  consideration  the  influence  that  the  Panama  Canal  may  be  exjjected  to  exercise 
upon  the  rates  and  rate  policies  of  the  transcontinental  railroads. 

V. — Peobable  Adjustment  of  Transcontinental  Rail  Rates  Resulting  from  Canal  Competition. 

The  railroad  rate  system  that  has  been  worked  out  by  the  transcontinental  railroads  is  a  complicated  struc- 
ture that  has  been  evolved  slowly.  It  is  the  resultant  of  the  interaction  of  numerous  forces,  of  the  competition 
of  rival  sections,  of  rival  industries,  and  of  rival  carriers.  As  these  forces  of  competition  change,  from  time  to 
time,  the  rate  system  is  mocUfied  in  detail  to  keep  transportation  charges  adjusted  as  closely  as  practicable  to 
economic  conditions.  The  opening  of  the  Panama  Canal  will  so  greath'  change  the  industrial  relations  of 
different  sections  of  the  United  States  and  the  competition  of  the  transcontinental  railroads  and  the  intercoastal 
water  hues  as  inevitably  to  recjuire  many  changes  in  the  present  system  of  transcontinental  rates. 

Just  what  rate  pohcies  the  railroads  will  adopt  to  meet  the  situation  created  by  the  Panama  Canal  can  not 
be  precUcted  in  advance  of  experience.  The  railroad  companies  wall  solve  the  problems  as  they  arise  and  will 
cross  no  bridge  until  it  is  reached.  It  is  possible,  however,  to  indicate  the  rate  problems  which  the  canal  will 
probably  create  and  to  point  out  the  possible  policies  open  to  the  railroads.  Sucli  an  anal_ysis  of  the  prol)able 
effect  of  the  canal  upon  transcontinental  railroad  rates  may,  moreover,  enable  the  Panama  tolls  to  be  fixed  wiih. 
a  clearer  understanding  of  their  effects. 

1.  The  railroad  rates  most  completely  subject  to  the  competition  of  the  intercoastal  lines  using  the  canal 
will  be  those  westbound  to  the  Pacific  coast  from  the  section  of  the  United  States  between  the  Buffalo-Pittsburgh 
district  and  the  Atlantic  seaboard.  Even  under  present  conditions,  the  transcontinental  rail  rates  between  the 
two  seaboards  are  largely  affected  by  the  competition  of  the  routes  via  the  Isthmuses  of  Panama  and  Tehuan tepee, 
and  it  is  estimated  that  one-half  of  the  traffic  carried  from  this  eastern  section  of  the  United  States  to  the  Pacific 
coast  now  moves  by  the  water  routes.  Is  it  probable  that  the  railroads  will  endeavor  to  meet  the  rates  of  the 
intercoastal  water  lines  witli  the  view  to  holding  to  the  all-rail  routes  the  traffic  between  the  two  seaboards? 
It  is  hardly  to  be  expected,  for  the  followuig  reasons,  that  the  railroads  will  make  a  desperate  effort  to  hold  tliis 
traffic  against  the  water  lines. 

In  the  first  place,  the  tonnage  involved  constitutes,  at  the  present  time,  a  comparatively  small  percentage — 
only  20  to  22  per  cent — of  the  total  traffic  carried  to  the  Pacific  coast  by  the  transcontinental  roads — those 
running  from  Cliicago  to  the  west  coast.  Only  35  per  cent  of  the  tlu'ough  business  of  these  lines  origuiates  in 
this  eastern  section  and  in  the  Buffalo-Pittsburgh  territory.  In  other  words,  more  than  two-tliirds  of  the 
through  traffic  of  the  transcontinental  Imes  now  comes  from  the  Central  West. 

In  the  second  place,  the  s^'stem  of  blanketmg  rates  from  the  Atlantic  seaboard  westward  to  the  Missouri 
River — a  system  that  will  probably  prevail — will  carry  through  to  the  Missouri  River  any  rate  reductions 
which  the  railroad  lines  may  make  on  traffic  from  coast  to  coast,  and  it  is  hardly  to  be  expected  that  the  rail- 
roads will  reduce  rates  unnecessarily  upon  two-thirds  to  four-fifths  of  their  traffic  in  order  to  compete  more 
successfully  for  the  remaining  minor  portion  of  then-  possible  tonnage.  It  will  be  more  profitable  for  the  trans- 
continental rail  lines  to  lose  the  major  portion  of  then-  traffic  from  the  Atlantic  seaboard  section  in  order  to 
maintain  paying  rates  on  the  westbound  traffic  from  the  middle  section  of  the  United  States. 

In  the  thu'd  place,  it  is  probable  that  the  eastern  trunk  Imes  as  weU  as  the  Pacific  lines  originating  at  Chicago 
and  central  western  points  will  be  opposed  to  the  policy  of  reducing  coast-to-coast  all-rail  rates  to  the  lowest 
possible  noinimum  in  order  to  meet  the  competition  of  the  water  lines.  It  will  be  to  the  advantage  of  the  eastern 
trunk  lines  to  haul  traffic  from  points  within  500  mUes  of  the  Atlantic  to  the  seaboard  for  shipment  by  water 
rather  than  to  prorate  with  theh  western  con^iections  low,  through  all-rail  rates  from  the  Atlantic  to  the  Pacific. 

2.  The  transcontinental  railroads  may  be  expected  to  endeavor  to  hold  as  much  as  possible  of  the  traffic 
from  the  eastern  seaboard  States  to  intermediate  points  in  the  Rocky  Mountain  States.     The  steamship  lines 


86  PANMIA  CANAL  TRAFFIC  AND   TOLLS. 

through  the  canal,  with  the  cooperation  of  the  Pacific  coast  jobbers,  will  endeavor  to  supply  the  cities  within  a 
thousand  miles  of  the  Pacific  coast  with  supplies  handled  by  way  of  the  canal  and  the  Pacific  gateways.  Up  to 
the  present  time,  the  railroads  interested  in  transcontinental  traffic  have  adhered  to  the  policy  of  charging 
higher  rates  to  intermediate  points  in  the  mountain  States  than  to  Pacific  coast  terminals  and  have  thus  assisted 
in  maintaiifing  the  Pacific  coast  cities  as  the  jobbing  centers  from  which  many  of  the  supplies  required  by  the 
mountain  States  are  obtained. 

After  the  canal  is  opened  the  railroads  ^dll  be  obliged  to  decide  whether  it  is  wiser  to  continue  to  favor 
the  Pacific  coast  jobbing  trade,  or,  by  reduction  of  rates  from  the  east  to  the  mtermountain  cities,  to  cause  those 
cities  to  secure  their  suppfies  directly  from  the  east  and  not  by  way  of  the  Pacific.  While  it  is  impossible  to 
predict  which  of  these  two  pohcies  will  be  deemed  wiser,  it  would  seem  a  priori  that  the  railroads  will  prefer 
to  supply  the  mtermountain  States  directly  from  the  eastern  sources  of  supply. 

3.  The  principal  eastern  termini  of  the  transcontinental  railroads  are  St.  Paul,  Duluth,  Chicago,  St.  Louis, 
Kansas  City,  and  Omaha,  and  these  railroads  are  concerned  first  of  all  with  the  effect  which  the  Panama  Canal 
may  have  upon  the  westbound  rates  from  the  central  section  of  the  country.  The  rates  to  the  Pacific  coast 
from  Chicago  and  other  points  as  far  east  as  that  city,  after  the  opening  of  the  Panama  Canal,  must  meet  the 
through  rates  by  rail-and-water  fines  via  Atlantic  and  Gulf  ports.  It  is  the  expectation  of  the  trunk  lines  that 
they  wiU  be  able  to  divert  to  the  Atlantic  seajiorts  transcontinental  traffic  originating  at  points  as  far  west  as 
Cleveland  and  Indianapofis.  It  will  also  jirobably  be  possible  for  the  railroads  to  the  GuK  to  attract  some  west- 
bound transcontinental  traffic  to  Guh  ports  from  points  as  far  north  as  St.  Louis.  This  indicates  that  the  trans- 
continental fines  must  reckon  with  the  canal  route  in  making  rates  from  the  eastern  and  southern  parts  of  the 
MississipprVaUey  to  the  Pacific  coast. 

4.  At  the  jiresent  time  the  transcontinental  railroads  have  a  relatively  large  and  a  lughly  profitable  traffic 
from  the  Central  West  to  intermediate  points  in  the  mountain  States.  The  rates  generally  being  the  same  from 
the  Middle  West  as  from  the  Atlantic  seaboard  to  the  States  in  the  iutermountain  section  of  the  far  West,  the 
manufacturers  and  other  producers  of  the  Middle  West  have  secured  most  of  the  trade  of  the  mountain  States. 
Formerly  traffic  moved  from  the  Atlantic  seaboard  around  to  the  Pacific  coast  and  from  there  inland  to  the 
intermountain  States.  Now  it  moves  mainly  by  direct  rail  haul  from  the  Middle  West.  With  the  opening  of 
the  Panama  Canal,  an  effort  will  doubtless  be  made  by  eastern  producers  to  regain  a  greater  or  less  portion  of 
the  trade  of  the  intermountain  States  by  shipping  commodities  at  low  rates  tlirough  the  canal  to  the  Pacific 
coast  for  distribution  thence  tlirough  the  intennountain  States.  The  Pacific  coast  jobbers  interested  in  this 
trade  wiU  be  able  to  secure  commodities  either  from  eastern  producers  by  way  of  the  canal  or  from  ^Middle  West 
producers  by  way  of  the  railroads.  It  has  thus  far  been  deemed  profitable  by  the  transcontinental  fines  to 
make  tlu'ough  rates  to  the  Pacific  coast  much  lower  than  to  intermediate  ])oints  and  thus  favor  the  jobbing 
trade  of  the  Pacific  coast.  Tins  poficy  has  been  justified  by  the  fact  that  the  low  through  rates  were,  at  least, 
sfightly  profitable,  and  that  the  distribution  of  traffic  by  rail  from  the  Pacific  coast  through  the  mountains  at 
high  local  rates  was  highly  profitable.  It  seems  probable  that  the  Panama  Canal  will  cause  the  through  rates 
to  the  Pacific  coast  to  be  so  low  as  to  make  it  more  jirofitable  for  the  railroads  to  carry  traffic  from  the  Middle 
West  directl}'  to  intermediate  points  than  to  haul  it  to  the  Pacific  coast  for  subsequent  distribution.  This  view 
has  been  expressed  in  the  following  words  by  the  traffic  manager  of  one  of  the  transcontinental  railroads: 

The  railroads  have  maintained  normal  rates  to  these  interior  points  and  have  resisted  the  natural  demand  for  rates  insuring  direct  move- 
ment of  these  commodities  from  eastern  sources  of  supply,  because  they  knew  that  they  were  carrying  85  per  cent  of  the  tonnage  to  Pacific 
coast  terminals,  and  for  that  reason  their  revenue  on  eastern  manufactured  goods  shipped  from  Seattle  to  Walla  Walla,  Spokane,  etc., 
was  not  measured  by  the  rate  charged  for  that  final  movement  of  the  traffic,  and  so  far  as  the  competition  of  water-borne  commodities, 
including  imported  merchandise,  was  concerned,  there  was  consolation  in  the  fact  that  we  were  getting  a  comparatively  high  rate  from 
Seattle  to  these  interior  points. 

But  we  should  ask  ourselves,  what  would  have  been  the  adjustment  of  rates  to  interior  points  in  the  absence  of  these  compensating 
conditions?  If  the  town  of  Walla  Walla  uses  10,000  kegs  of  nails  per  annum,  it  is  the  duty  of  the  railroad  traffic  manager  to  make  that 
business  contribute  as  much  as  possible  to  the  earnings  of  his  railroad.  Heretofore  we  have  not  worried  when  we  saw  these  nails  coming 
in  from  Portland  or  Seattle,  for  the  reasons  above  stated,  but  when  we  stop  carrying  the  original  shipments  to  Seattle,  and  when  the 
business  from  Portland  begins  to  seek  the  open  river  route,  then  we  will  realize  that  we  must  make  rates  from  the  east  which  will  insure 
the  direct  movement  of  these  commodities  to  these  interior  points. 

As  to  the  ability  of  the  railroads  to  do  this,  I  don't  see  how  there  can  be  any  question  so  far  as  the  territory  east  of  the  Cascade  Moun- 
tains is  concerned;  they  may  be  driven  out  of  the  Pacific  coast  business,  but  they, will  stay  in  the  business  east  of  the  Cascade  Mountains, 
because  they  must  stay  in  it  so  long  as  it  represents  any  rate  over  and  above  the  actual  cost  of  the  service  when  considered  as  additional 
traffic  within  the  capacity  of  the  railroad,  and  that  is  just  exactly  what  it  will  be. 


PANAMA  CANAL  TKAFFIC  AND  TOLLS.  87 

5.  The  probable  effect  of  the  canal  upon  eastbound  transcontinental  rail  rates  may  be  brieflj'  considered, 
because  much  of  the  prececUng  analysis  of  the  relation  of  the  canal  to  westbound  rates  is  applicable  to  eastbound 
charges.  The  tonnage  carried  by  rail  from  the  Pacific  coast  thi-ough  to  the  Atlantic  section  east  of  Pittsburgh 
and  Buffalo  is  relatively  light  and  consists,  in  large  part,  of  perishable  freight,  of  wliich  green  fruits  constitute 
an  important  item.  It  is  possible  that  the  steamship  lines  through  the  canal  ^^•ill  handle  some  of  the  green  fruits 
from  the  west  coast  to  the  eastern  markets,  but  in  all  probability  the  present  methods  of  shipping  and  marketing 
fruit  ^vill  prevail,  and  the  traffic,  in  spite  of  somewhat  liigher  rates,  will  continue  to  move  mainly  by  rail.  The 
principal  markets  for  all  the  products  of  the  west  coast  are  in  the  Rockj^  Mountain  section  and  the  Mississippi 
Valley,  and  the  transcontinental  railroads  will  be  concerned  chiefly  in  maintaining  eastboimd  rates  from  the 
west  coast  to  those  sections  and  \vill  hardly  decide  to  reduce  rates  on  traffic  destined  to  points  thi'oughout  the 
eastern  haK  of  the  United  States  in  order  to  hold  against  the  steamshiji  lines  a  portion  of  the  comparatively 
small  tonnage  which  the  railroads  haul  tlu-ough  from  the  Pacific  to  the  Atlantic  seaboard  section. 

6.  The  rates  on  fi-uits,  barley,  fish,  lumber,  and  other  west  coast  products  to  the  Mountain  States  and  to 
the  Mississippi  Valley  are  of  prime  importance  to  the  transcontinental  railroads.  The  traffic  taken  from  the 
west  coast  by  rail  to  the  southern  and  eastern  portions  of  the  Mississippi  Valley  must  be  secured  in  competition 
■with  the  combined  water  and  rail  routes  by  way  of  Panama  and  the  Gulf  or  Atlantic  ports,  but  for  the  major 
share  of  the  eastbound  traffic  from  the  Pacific  coast  over  the  mountains  the  railroads  will  not  be  seriously 
affected  by  canal  competition. 

7.  The  traffic  from  the  mines  and  ranches  of  the  intermountain  States  eastbound  to  the  Atlantic  coast 
section  comprises  a  comparatively  small  tonnage.  The  rail  rates  on  wool  and  some  other  products  will,  after 
the  opening  of  the  canal,  necessarily  be  influenced  by  the  tlirough  rate  by  rail  to  the  Pacific  coast  and  on  by 
steamsliip  lines  through  the  canal.  It  is  not  probable,  however,  that  much  traffic  will  move  from  jioints  east 
of  the  Sierra  Nevadas  to  the  Pacific  coast  for  transshipment  eastbound  through  the  canal. 

8.  The  prmcipal  markets  for  the  productions  of  the  Rocky  Mountam  States  are  in  the  Mississippi  Valley. 
It  wiU  not  be  possible  for  the  canal  to  divert  fi-om  the  railroads  the  traffic  from  the  western  Mountain  States 
to  destinations  west  of  Buffalo  and  Pittsburgh,  nor  will  the  canal  have  much  effect  upon  the  rates  wliich  the 
railroads  may  charge  for  this  traffic. 

9.  The  general  effect  of  the  canal  will  be  to  lower  transcontinental  railroad  rates.  If  the  foregoing 
analysis  proves  to  be  sound,  it  will  be  the  policy  of  the  railroads  to  allow  a  portion  of  the  traffic  that  might  be 
held  to  the  rails  to  be  shipped  coastwise  through  the  canal  and  to  maintain  rates  upon  the  traffic  winch  can 
readily  be  prevented  from  taking  the  canal  route.  It  is  probable  that  the  railroads  ^vill  adopt  the  general 
policy  of  surrendering  without  serious  struggle  the  minor  portion  of  their  traffic  in  order  to  maintain  profitable 
charges  upon  the  major  share  of  their  tonnage.  The  immediate  efl'ect  of  the  canal  will  be  to  lessen  railroad 
profits;  the  ultimate  effect  may  be  the  enhancement  of  the  prosperit}'  of  the  railroads.  The  canal  will  aid  the 
industries  and  trade  of  the  United  States.  Like  other  transportation  facilities,  it  will  create  the  need  of  other 
means  of  transportation;  and,  should  the  transcontinental  railroads  be  obliged  to  face  reduced  profits  for  a 
period  of  years,  they  need  have  no  serious  apprehension  as  to  their  future  prosperity.  The  railroads  connecting 
the  Mississippi  Valley  and  the  Pacific  coast  are  among  the  most  profitable  lines  in  the  United  States.  The 
country  they  serve  is  certain  to  have  a  large  development  during  the  next  quarter  century,  a  development  that 
will  unquestionably  be  appreciably  aided  by  the  Panama  Canal. 

VT.  Summary  of  the  Probable  Effects  of  the  Panama  Canal  upon  Transcontinental  Traffic  and 

Rates. 

The  probable  influence  of  the  Panama  Canal  upon  the  trade  of  the  eastern  and  of  the  central  sections  of 
the  United  States  with  the  western  part  of  the  country,  and  the  anticipated  effects  of  the  canal  upon  the  car- 
riers interested  in  that  trade  may  be  broadly  summarized  as  follows : 

1 .  The  Atlantic  section  of  the  United  States  wiU  obtain  a  somewhat  larger  share  of  the  trade  of  the  Pacific 
coast,  and  %vill  secure  more  benefit  from  the  cheap  water  route  than  will  the  Middle  West. 

2.  The  inroads  upon  the  trade  now  possessed  by  the  middle  section  of  the  country  vnH,  however,  probably 
not  be  serious;  because  (a)  the  Middle  West  now  has  a  firmly  established  hold  upon  the  west  coast  trade;  (b) 
the  Middle  West  producers,  aided  by  their  rail  carriers  to  the  Pacific  coast,  will  probably  be  able  to  compete 
successfuUy  with  eastern  producers  not  located  in  or  near  the  Atlantic  ports.     The  Mddle  West  wiU  lose  a 


88  PANAilA  CANAL  TRAFFIC  AND  TOLLS. 

part  but  not  all  of  the  trade  of  the  Pacific  coast  seaboard  cities,  but  may  be  expected  to  hold  nearly  all  of  the 
trade  of  the  cities  in  the  intermountain  States;  (c)  the  trunk  lines  to  the  Atlantic  seaboard  will  doubtless  aid 
producers  just  west  of  the  Alleghenies  by  making  low  through  rates  from  places  as  far  west  as  Cleveland  and 
Indianapolis  to  the  Pacific  via  the  Atlantic  ports  and  the  canal.  The  rail  lines  to  the  Gulf  likewise  will  draw 
trade  from  Memphis  and  St.  Louis  and  possibly  Kansas  City  to  the  Gulf  for  shipment  through  the  canal  to 
the  Pacific  coast;  (d)  the  transcontinental  rail  lines  running  west  fi-om  St.  Paul,  Cliicago,  St.  Louis,  and  the 
cities  on  the  IMissouri  River  may  be  expected  to  assist  in  buildmg  up  the  direct  trade  from  the  ilississippi  and 
Mssouri  Valleys  to  the  cities  in  the  intermountain  States,  and  thus  to  limit  the  entry  of  goods  fi-om  the  eastern 
part  of  the  United  States  via  the  Pacific  coast  into  the  inland  markets  of  the  intermountain  States. 

The  intermountain  States  will  probably  secure  lower  freight  rates  for  their  trade  with  the  eastern  sec- 
tion of  the  country  and  with  the  Middle  West.  Instead  of  cutting  deeply  into  the  rates  between  the  eastern 
part  of  the  United  States  and  the  Pacific  coast  terminals,  and  thereby,  under  the  ruling  of  the  Interstate  Com- 
merce Commission  in  the  Spokane  and  Reno  cases,  automatically  depressing  all  rates  to  mtermediate  points, 
the  railroads  will  more  probably  decide  to  maintain  fairly  remunerative  through  rates  to  the  west  coast,  to 
suffer  the  major  share  of  the  coast-to-coast  trafhc  to  be  supphed  by  eastern  producers  and  to  be  carried 
through  the  canal,  and  to  make  only  such  reductions  in  the  rates  to  and  from  the  intermountain  territory  as 
may  be  required  to  cause  that  section  to  continue  to  trade  mainly  with  the  Middle  West.  The  pohcy  of  the 
railroads  will  probably  be  to  make  it  advantageous  for  the  intermountain  cities  to  trade  less  through  Pacific 
coast  jobbers  and  more,  without  the  intervention  of  middlemen,  directly  with  the  central  and  eastern  sections 
of  the  country. 

3.  The  canal  will  assist  the  Pacific  Coast  States  in  tradmg  with  the  eastern  and  southern  parts  of  the 
United  States.  Much  trade  not  now  possible  will  develop.  The  importance  of  the  west  coast  cities  as  job- 
bing centers  may  be  lessened  by  the  growth  of  direct  trade  between  the  intermountain  States  and  the  sections 
east  of  the  mountains,  but  this  loss  will  be  more  than  compensated  for  by  the  growth  of  new  trade. 

4.  The  effects  of  the  canal  upon  American  trade  and  upon  rail  rates  will  not  be  much  affected  by  the  exemp- 
tion of  coastwise  ships  from  the  payment  of  Panama  tolls.  If  the  nonpajTuent  of  tolls  were  to  reduce  freight 
rates  by  the  amount  of  tolls,  the  freight  rates — which  will  be  from  S6  to  $20  a  ton — might  possibly  be  60  cents 
a  ton  lower.  That  would  be  of  some  assistance  to  the  Pacific  coast  jobbers  and  large  shippers,  and  would  some- 
what increase  the  advantage  which  the  canal  will  give  the  East  over  the  Middle  West  in  tradmg  with  the  west 
coast. 

It  is  not  probable,  however,  that  the  exemption  of  the  payment  of  tolls  will  appreciably  affect  the  rates 
charged  by  the  regular  steamship  lines.  The  nonpayment  or  remission  of  tolls  will  chiefly  aid  the  owners  of 
the  coastwise  marme  and  not  the  shippers.  Most  traffic  will  be  handled  by  the  regular  lines  which  will  charge 
common  rates  fixed  in  conference,  and  competition,  while  not  elinunated,  will  be  so  regulated  as  to  enable  the 
carriers  to  keep  charges  well  above  the  lowest  rates  at  which  traffic  can  profitably  be  carried.  Whether  there 
be  tolls  or  no  tolls,  the  line  steamship  rates  will  not  be  based  on  cost  of  service,  but  will  be  such  as  the  traffic 
will  bear  and  increase.  Canal  tolls,  being  a  part  of  the  cost  of  service,  will  not  make  line  steamship  rates  higher, 
nor  win  the  omission  of  tolls  cause  the  freight  rates  to  be  lower.  This  is  not  true  of  the  rates  payable  on  bulk 
cargoes  of  traffic  handled  in  mdividual  vessels  operated  under  charters.  Charter  rates  are  competitive,  and  the 
few  large  shippers  who  can  use  a  chartered  vessel  will  be  benefited  by  being  relieved  of  the  payment  of  canal 
tolls.  As  is  explained  in  Chapter  XII,  it  is  probable  that  the  payment  of  tolls  by  sliips  engaged  in  our  coast- 
to-coast  trade  would  affect  neither  the  rates  of  the  regular  steamship  lines  nor  the  charges  of  the  transconti- 
nental railroads. 


CHAPTER  V. 


THE  SUEZ   CANAL:    ITS    DIMENSIONS.  AND   ITS 
FINANCIAL  AND   TRAFFIC   HISTORY. 


CHAPTER  V. 


THE  SUEZ  CANAI:  ITS  DIMENSIONS,  AND  ITS  FINANCIAL  AND  TRAFFIC  HISTORY. 

In  planning  for  the  operation  of  the  Panama  Canal  and  in  fixing  tolls  for  its  use,  the  Suez  Canal  may  well 
be  studied  as  regards  past  and  present  dimensions,  its  traffic,  tolls,  operating  and  maintenance  expenses,  and 
methods  of  operation.  The  Suez  Canal  has  now  been  operated  for  about  4.3  years,  and  the  history  of  its  man- 
agement ought  to  be  of  assistance  in  the  administration  of  the  Panama  Canal. 

I.  Past  and  Present  Dimensions  of  the  Suez  Canal. 

The  Suez  Canal  was  opened  for  the  passage  of  vessels,  November  17,  1869.  Its  length  was  161  kilometers 
(87  nautical  miles),  its  depth  8  meters  (26  feet  .3  inches)  and  its  bottom  width  22  meters  (72  feet  2  inches). 
The  maximum  vessel  draft  authorized  was  7. .50  meters  (24  feet  7  inches).  These  dimensions  were  sufficiently 
large  for  the  time;  indeed,  the  actual  draft  of  the  vessels  using  the  canal  did  not  reach  the  authorized  maximum 
until  1880.     The  location  and  main  features  of  the  Suez  Canal  are  shown  on  Plate  4  at  the  end  of  tliis  volume. 

Two  decades  passed  before  the  general  dimensions  of  the  canal  were  materially  changed,  although  numer- 
ous improvements  had  meanwliile  been  carried  out.  Between  1870  and  1882,  various  curved  sections  were 
straightened;  and  the  "stations"  or  basins  in  the  canal  at  wliich  vessels  may  pass  each  other  were  enlarged 
and  their  number  increased  to  13.  Tliis  work  of  straightening  curves  has  continued,  and  the  canal  has  now 
been  so  widened  through  a  large  part  of  its  length  as  to  render  unnecessary  many  of  the  former  passing 
"stations." 

The  policy  of  increasing  the  general  dimensions  of  the  canal  was  inaugurated  in  1887.  Its  depth  had  been 
increased,  by  1890,  to  9  meters  (29  feet  6  inches)  and  the  authorized  vessel  draft  had  become  7.80  meters  (25 
feet  7  inches).  By  1902  the  canal  depth  was  increased  to  9.50  meters  (31  feet  2  inches),  and  on  January  1  of 
the  next  year  the  authorized  vessel  draft  was  made  8  meters  (26  feet  3  inches).  An  extensive  program  calling 
for  a  gradual  deepening  to  10  meters  and  then  to  10.50  was  adopted  in  1901 ;  then,  in  1906,  when  it  was  found 
that  the  canal  depth  actually  available  every^vhere  exceeded  9  meters,  the  authorized  vessel  draft  was  increased 
to  S.23  meters  (27  feet).  By  1908,  a  depth  of  10  meters  (32  feet  9  inches)  was  attained  and  a  maximum  vessel 
draft  of  8.53  meters  (28  feet)  was  authorized.  In  1909,  before  the  program  of  1901  had  been  fully  carried  out, 
new  plans  were  adopted  calling  for  a  depth  of  11  meters  (36  feet  1  inch),  and  the  company  expects  to  attain 
that  depth  in  1915.     At  present  the  minimum  depth  is  10  meters. 

The  original  bottom  width  of  22  meters  (72  feet)  remained  unchanged,  except  at  certain  places,  until  the 
policy  of  enlarging  the  canal  was  adopted  in  1887.  By  1898,  a  bottom  width  of  30  meters  (98  feet  5  inches) 
was  attamed;  under  the  program  adopted  ui  1909  the  width  is  being  increased  to  41  meters  (134  feet  6  inches) 
at  the  bottom  and  to  45  meters  (147  feet  7  inches)  at  a  depth  of  10  meters.  At  certain  points  the  width  will 
be  greater.  The  successive  cross-section  dimensions  of  the  canal  from  1884  to  the  present  are  shown,  on  Plate  5 
in  the  pocket  at  the  end  of  tliis  volimie. 

The  increase  in  the  depth  and  width  of  the  canal  has  been  accompanied,  as  is  shown  in  Table  I,  by  a  grad- 
ual increase  in  the  draft,  beam,  and  length  of  the  vessels  using  the  waterway.  Since  1880,  the  maximum  draft 
of  some  of  the  vessels  passing  through  the  canal  has  been  equal  to  the  maximum  draft  authorized  by  the  canal 
company,  although  the  majority  of  the  vessels  have  had  less  than  the  authorized  draft.  In  1910,  94  per  cent 
of  the  vessels  had  a  draft  of  less  than  8  meters  (26  feet  3  inches),  4  per  cent  of  8.01  to  8.23  meters  (27  feet), 
1  per  cent  of  8.24  to  8.38  meters  (27  feet  6  inches),  and  but  53  vessels,  or  1  per  cent  had  a  draft  of  8.39  to 
8.53  meters  (28  feet).  Wben  the  depth  of  11  meters  shall  have  been  established,  vessels  drawing  31  or  32  feet 
of  water  can  navigate  the  canal. 

The  growth  m  the  size  of  the  vessels  using  the  canal  has  kept  pa.ce  with  the  increase  in  the  dimensions  of 
the  waterway.  The  average  net  tonnage  of  the  vessels  passing  through  the  canal  advanced  from  898  tons  in 
1870  to  3,688  tons  in  1911. 

34998°— 12 — -7  91 


92  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Table  I.— MINIMUM  DIMENSIONS  OF  SUEZ  CANAL,   AND  MAXIMUM  DIMENSIONS   OF  VESSELS. 


Bottom 
width  of 
canal. 

Maximum 
draft  of 
vessels. 

Ma.Timiim 
width  of 
vessels. 

Maximum 
length  of 
vessels. 

Maximum 

authorized 

draft  of 

vessels. 

Average 
time  of 
transit. 

Meters. 

Meters. 

Meters. 

Meters. 

Meters, 

H.  m. 

22 

6.76 
6.76 

13.60 
13.60 

117 
117 

7.50 
7.50 

22 

48    58 

22 

7.21 

14.93 

120 

7.50 

40    58 

22 

7.19 

14.93 

120 

7.50 

42    34 

22 

7.39 

14.93 

124.90 

7.50 

42    52 

22 

7.39 

14.93 

124.90 

7.50 

41    15 

22 

7.39 

14.93 

128.01 

7.50 

40    00 

22 

7.49 

14.93 

126. 15 

7.60 

38    41 

22 

7.49 

16.76 

126. 15 

7.60 

39    14 

22 

7.49 

15.32 

126. 15 

7.50 

37    01 

22 

7.49 

15.32 

126. 15 

7.50 

36    36 

22 

7.50 

15.40 

135.  78 

7.50 

38    46 

22 

7.50 

15.40 

135.78 

7.50 

45    53 

22 

7.50 

15.40 

138.99 

7.50 

53    46 

22 

7.50 

16.40 

135.  78 

7.50 

48    36 

22 

7.50 

15.40 

138.91 

7.50 

41    53 

22 

7.60 

20.11 

138.91 

7.50 

43    00 

22 

7.50 

20.11 

140.20 

7.50 

36    11 

7.50 

15.91 

141.93 

7.50 

34    03 

7.50 

20.11 

142.  79 

7.50 

30    45 

7.50 

20.11 

142.79 

7.50 

26    44 

7.80 

17.45 

147.53 

7.80 

24    06 

7.80 

18.59 

147.53 

7.80 

23    31 

(•) 

7.80 

16.28 

147.53 

7.80 

21    16 

7.80 

16.28 

147.53 

7.80 

20    44 

7.80 

21.34 

148.13 

7.80 

19    55 

'7.80 

20.42 

148. 13 

7.80 

19    18 

7.80 

20.42 

159.41 

7.80 

18    38 

7.80 

22.45 

100.  45 

7.80 

17    44 

30 

7.80 

22.86 

160.45 

7.80 

18    02 

30 

7.80 

20.73 

160.46 

7.80 

18    38 

30 

7.80 

22.99 

170.86 

7.80 

18    32 

30 

7.82 

23.32 

170.86 

7.80 

18    41 

30 

8.00 

23.77 

170.86 

8.00 

18    02 

30 

8.00 

23.10 

170.86 

8.00 

17    48 

30 

8.00 

21.84 

170.86 

8.00 

18    18 

30 

8.15 

22.86 

170.86 

8.00 

18    35 

30 

8.23 

23.85 

170.86 

8.23 

18    06 

30 

8.23 

22.86 

170.86 

8.23 

17    58 

30 

8.53 

22.00 

170.86 

8.53 

17    24 

f           8.53 

23.47 

179.50 

8.53 

17    13 

(') 

8.63 

22.80 

179.50 

8.53 

16    54 

[           8.53 

22.99 

179.50 

8.53 

17    01 

1869. 
1870. 
1871. 
1872. 
1873. 
1874. 
1875. 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 
1882. 
1883. 
1884. 
1885. 
1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908, 
1909, 
1910, 
1911 


'  Program  of  widening  canal  gradually  carried  out. 

2  Gradual  deepening  to  10  meters  with  program  calling  for  10.50  meters. 

8  11-meter  project  adopted  1909. 

*  Widening  of  canal  at  certain  places  with  program  calling  for  minimum  width  of  41  meter.'>  at  bottom  and  45  meters  at  a  depth  of  10  meters. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


93 


The  growth  in  canal  dimensions,  together  with  the  increase  in  the  number  and  size  of  passing  stations  or 
"lay-bys,"  the  straightening  of  curves,  and  the  improvement  in  facilities  have  also  had  a  marked  effect  upon  the 
average  time  required  to  pass  through  the  canal,  which  declined  from  48  hours  and  58  minutes  in  1870  to  17 
hours,  1  minute  in  1911.  The  average  transit  time  of  vessels  equipped  with  electric  searclilights  was  16  hours 
and  42  minutes  in  1910;  and  for  the  comparatively  few  sliips  not  so  equipped,  and  consequently  not  permitted 
to  pass  through  at  night,  the  average  duration  of  the  passage  was  26  hours  and  20  minutes. 

For  25  years  the  Suez  Canal  Co.  has  been  almost  constantly  enlarging  and  improvuig  the  waterway.  The 
project  now  being  carried,  which  will  give  the  canal  a  depth  of  36  feet,  a  minimum  bottom  width  of  137  feet, 
and  a  much  greater  breadth  tlirough  a  large  part  of  the  waterway,  is  well  advanced.  Plate  4  at  the  end  of  tliis 
volume  shows  in  detail  what  will  be  the  dimensions  of  the  canal  when  the  enlargements  have  been  com- 
pleted. The  extensive  improvements  are  being  paid  for  mainly  from  current  revenues,  the  progressive  policy 
of  the  company  having  been  made  possible  by  the  large  revenues  resulting  from  the  rapid  increase  in  traffic. 

II.   Finances  of  Construction. 

« 

The  Suez  Canal  was  constructed  and  has  been  enlarged  and  managed  by  a  private  corporation,  which,  as  the 
following  figures  will  show  in  detail,  has  invested,  from  the  beginning  of  construction  up  to  the  present  time, 
about  $127,000,000,  of  wliich  about  two-thirds  have  been  secured  from  the  sale  of  securities  and  about  one-third 
has  been  taken  from  earnings.  The  original  capital  of  the  Suez  Canal  Co.,  issued  m  1859,  was  400,000  shares 
of  500  francs  each.  These  shares  partake  of  the  nature  of  both  bonds  and  stock,  for  they  are  entitled  to  interest 
at  5  per  cent,  untd  redeemed,  as  well  as  to  participation  in  the  company's  profits.  Provision  is  made  for  their 
redemption,  but  when  redeemed  they  continue  to  share  in  the  profits,  and  merely  lose  the  interest-bearuig 
feature.     December  31,  1911,  378,231  of  these  shares  were  in  circulation. 

In  1875,  the  British  Government,  through  Lord  Beaconsfield,  purchased  the  176,602  shares  held  by  the 
Kliedive  of  Egypt,  paying  £4,000,000  for  them.  The  British  Government  does  not  own  a  majority  of  the 
shares,  and  the  Suez  Canal  is  controlled  and  operated  by  a  French  company.  The  annual  dividends  and  interest 
paid  on  the  shares  have  increased  from  23.5  francs  per  share  of  500  francs,  during  the  first  five  years,  to  165 
francs  per  share  paid  in  1911,  or  from  4.7  per  cent  to  33  per  cent.  The  shares  are  closely  held,  and  trading  in 
them  is  light,  but  sales  are  occasionally  made  on  the  Paris  Bourse.  The  stock  sells  at  a  premium  of  over 
1,000  per  cent. 

The  original  shares  were  sold  at  par  and  jielded  the  company  200,000,000  francs.  This  did  not  provide 
the  company  with  all  the  funds  required,  and  to  secure  more  capital  333,333  5  per  cent  notes  were  sold  in 
1867-68.     Of  these  notes  99,994  are  stUI  outstanding. 

There  were  100,000  shares  given  to  the  "founders."  These  shares  are  not  stock,  but  are  rather  certificates 
of  obligation  requiring  the  company  to  pay  10  per  cent  of  its  profits  to  the  promoters  and  founders  of  the  original 
company  and  their  heirs  and  assigns. 

Table  II.— SECURITIES  OF  THE  SUEZ  MARITIME  CANAL  CO.,  ISSUED  AND  OUTSTANDING,  TO  DEC.  31,  1911. 


Nature  and  number  of  securities  issued. 


Price  at 
which 
issued. 


Number  in 

circulation  in 

1911. 


1859. . . . 
1867-6S. 
1871.... 
1874.... 
1880.... 


1887 


400,000  shares 

333,333  notes,  5  per  cent 

120,000  thirty-year  bonds 

400,000  debenture  bonds,  5  per  cent 

73,026  notes,  3  per  cent ,  first  series 

238,964  notes,  3  per  cent,  second  series. . 
13,276  notes,  3  percent,  third  series  ^... 


Francs. 
500.00 
300.00 
100.00 
S.5.00 
369.  73 
418.47 


Francs. 
200,000,000.00 
99,999.900.00 
12,000.000.00 
34,000,000.00 
26,999,961.85 
99,999,537.31 
6,278,966.00 


378,231 
99,994 


372,531 
62,944 

232,592 
12,543 


1  Obtained  from  a  part  of  a  loan  of  50,000,000  francs ,  authorized  by  the  general  meeting  of  stockholders  in  1901  and  1906. 

The  general  meeting  in  1911  authorized  the  administrative  council  to  increase  the  amount  of  this  loan  from  50,000,000  to  150,000,000  francs,  but  this  privilege  has  not 
yet  been  made  use  of. 


94 


PANMIA  CANAL  TRAFFIC   AND  TOLLS. 


As  is  shown  in  Table  II,  the  company  has  at  various  times  issued  notes  and  bonds.  Up  to  December  31, 
1911,  the  company  reahzed  279,278,365.16  francs  from  the  issue  of  these  notes  and  bonds.  In  order  to  cany  out 
the  canal  improvement  plan  adopted  in  1909,  the  stockliolders,  in  1911,  authorized  the  administrative  counci 
of  the  company  to  increase  its  third  series  3  per  cent  notes  from  50,000,000  to  150,000,000  francs,  but  the  notes 
had  not  been  issued  up  to  the  end  of  1911. 

The  at^o-regate  fimds  realized  from  the  sale  of  securities — stock,  notes,  and  bonds — up  to  December  31,  1911, 
was  479,278,365.16  francs.  There  is  included  in  this  sum  secured  from  the  sale  of  securities  the  34,000,000 
francs  of  borrowed  funds  that  were  used  in  1874  to  pay  the  interest  which  the  company  was  unable  to  pay 
from  earnings  during  the  first  five  years  of  canal  operation.  The  total  net  cost  of  the  canal  up  to  December 
31,  1911,  as  shown  in  the  company's  balance  sheet  (Table  III),  was  662,033,560.33  francs.  Of  the  total  invested 
funds  445,278,365  francs  (479,278,365  francs -34,000,000  francs)  were  secured  from  the  sale  of  securities,  and 
216,755,195  francs  were  taken  from  earnings.  The  total  assets  of  -the  company  are  given  as  842,919,971.54 
francs  (Table  III). 

The  earnings  and  profits  of  the  company  are  large.  The  portion  of  the  net  profits  severally  received  by  the 
stockliolders,  the  Egyptian  Government,  the  "founders,"  the  administrative  officers,  and  the  employees  are 
stated  at  the  bottom  of  Table  III. 

Table  HI.— ASSETS  AND  LIABILITIES  OF  SUEZ  MARITIME  CANAL  CO.,  DEC.  31,  1911. 


Amounts  representing  net  cost  of  the  Suez  Maritime  Canal  to  Dec.  31, 

1911: 

Total  investment  ucoording  to  annual  statement.  Dec.  31, 1910. . 

Investments  in  enlargement  and  improvements  of  the  canal 

during  1911 

Fluctuating  and  fixed  assets: 
Headquarters — 

Offlce  building  of  company  at  Francs. 

Paris 1, 174, 921. 74 

Furnitiu^ Inventory.          Francs. 

1,174,921.74 

Lands- 
Lands,  value Inventory. 

Chattels Inventory. 

Buildings 13,487, 396. 29 

Supplies  and  implements 106,518. 19 

13,593,913.48 

Transit  and  navigation — 

Chattels,  etc Inventory. 

Materials  and  tools  in  use 2,415,962.77 

2,415,962.77 

Repairs,     materials,     and     ware- 
houses— 

Chattels Inventory. 

Materials  and  tools  in  use 43, 241 ,  418. 54 

Miscellaneous  supplies 4, 141, 230. 02 

47,382,648.56 

Waterworks  at   Port  Said,  Ismailia, 

and  Suez- 
Miscellaneous Inventory. 

Conduits,    reservoirs,    and    appa- 

paratus  (suppUes) 5,450,663.83 

^  ^     1-1-       '  5,450,663.83 

Buildings  tmder  construction 670, 243. 66 

Work  under  way 2;  578, 856. 33 

3,149,099.99 

Cash  and  available  resources: 

Ca,sh,  bank  balances,  and  credits 21,763,207.76 

Amoimts  brought  foraard 6, 463, 628. 35 

Bills,  acceptances,  and  long-term  investments. .  65,015,306.81 

Main  agency  in  Egypt 2, 057, 932. 22 

Various  amounts  due 13, 120, 848. 05 

Checks 308,277.65 


662,033,560.33 


842,919,971.54 


Capitalstock,  400,000  shares, at500francsofwhich—  Francs. 

378,231  are  in  circulation 189, 115, 500. 00 

21,769  are  redeemed 10,884,500.00 

ConsoUdation  of  arrears  of  interest,  400,000  deben- 
tin'e  bonds,  at  85  francs: 

372, 531  are  in  circulation 31, 665, 135. 00 

27,469  are  redeemed 2, 334, 865. 00 

Loan  of  1867,  68,333,333  bonds  issued,  at  300  francs: 

99,994  are  in  circulation 29, 998, 200. 00 

233, 339  are  redeemed 70, 001, 700. 00 

Loan  of  1871,  120,000  30-year  debentuiB  bonds,  at 

100  francs,  redeemed 

Loan  of  1880,  73,026  3  per  cent  bonds,  first  series, 
issued  at  various  amounts: 

62,944  are  in  circulation 23,272,335.86 

10, 082  are  redeemed 3, 727, 625. 99 

Loan  of  1887,  238,964  3  per  cent  bonds,  second  series, 
issued  at  various  amounts: 

232, 592  are  in  circulation 97, 333, 039. 21 

6, 372  are  redeemed 2, 666, 498. 10 

Loan  of  1909,  13,098  3  per  cent  bonds,  third  series,    - 
issued  at  various  amounts: 

12,543  are  in  circulation 5,932,289. 13 

733  are  redeemed 346, 676. 87 

Sinking  fund 62, 223, 935. 63 

Insurance  and  contingent  fimd 1 ,  .'iOO,  000. 00 

Applied  to  construction  or  improvement  of  canal 

Statutory  reserve 

Extraordinary  reserve 

Sundry  credits: 

Interest,  dividends,  and  redemptions- 

Mattu-ed  before  Dec.  31, 1911 2,353,;58. 14 

Matured  on  Jan.  1, 1912 29, 320, 298. 78 

31,673,456.92 
Societe  Civile  for  the  payment  of  15  per  cent, 

Egj'ptian  Government 4, 430,619. 72 

Bills 'of  exchange  payable 48, 694. 39 

Checks  payable '. -.     2,618,289.84 

Sundry  credits  and  accounts 6, 375, 905. 65 

Profit  and  loss: 

Net  profit  of  operations,  1911 87,075, 492. 96 

Dividends  already  paid  for  year 29, 577, 464. 78 

Carried  over  to  1911 


Francs. 
200,000,000.00 


99,999,900.00 
12,000,000.00 


479,278,365.16 


694,176,608.09 
37,762,887.12 
8,000,000.00 


45,152,866.52 


1  Balance  to  be  paid. 


Tonnage 

25,000,000 
JO.OOC.OOO 

15.000,000 
10,000,000 

5,D0a000 

iiei 
oiei 

6061 
80GI 
1.061 
9061 

soei 
fOei 
coei 

tOGl 

loei 

OOGl 
6691 
9681 
1.691 
9691 

se9i 
ve9i 

C6B1 
IG91 
1681 
0681 
6891 
8981 
1.881 
9881 

;eei 

»89l 

egsi 

2881 
1891 
0981 
6:81 
81.81 
1.^91 
91.81 
9181 

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£1.81 

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I                                                  S                                                 o                                                  §                                                 ° 

3-                               §                               §                               §-                               § 

PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


95 


STATUTORY  DIVISION  OF  PROFITS. 

Francs. 

71  per  cent  to  stockholders 61, 823, 600. 00 

15  per  cent  to  the  Egyptian  Government 13,061, 323. 94 

10  per  cent  to  the  founders  of  the  company 8, 707, 549. 29 

2  per  cent  to  the  administrative  officers .'. 1, 741,509. 86 

2  per  cent  to  the  employees 1, 741, 509. 86 

Total 87,075,492.95 

III.  Traffic  History  of  the  Suez  Canal. 

The  traffic  of  the  Suez  Canal  during  the  first  two  j^ears  was  relatively  small,  for  the  reason  that'the  Suez 
route  is  not  a  practicable  one  for  sailing  vessels.  At  the  time  of  the  opening  of  the  canal  most  of  the  freight 
between  Europe  and  the  countries  on  and  beyond  the  Indian  Ocean  was  carried  in  sailing  vessels.  Steamers 
had  to  be  built  for  the  Suez  route,  and,  bemg  much  less  efficient  than  freight  steamers  are  to-day,  they  but 
gradually  took  the  traffic  with  the  Far  East  and  Australasia  from  the  sailing  vessels  and  the  Cape  of  Good  Hope 
route. 

The  increase  in  the  traffic  of  the  Suez  Canal,  however,  was  relatively  large  during  the  first  decade,  the  net 
tonnage  of  the  vessels  that  passed  through  the  canal  amounting  to  2,000,000  in  1875  and  to  3,000,000  m  1880. 
(Table  IV  and  Chart  I.)  During  the  following  10  years  the  traffic  rose  to  6,800,000  net  tons,  the  gain  for  the 
decade  being  126  per  cent.  This  was  a  decade  of  rapid  expansion  of  the  commerce  of  Great  Britain  and  other 
European  countries  with  India,  the  Orient,  and  Oceania;  and  the  Suez  Canal  secured,  in  competition  with  the 
Cape  route,  a  steadily  increasing  share  of  that  commerce. 

Table  IV TRAFFIC  OF  THE  SUEZ  CANAL,  1870-1911. 


Net  tonnage. 


Number  of 
vessels. 

Mean  net 
tonnage 
per  vessel. 

Mean  gross 

tonnage 
per  vessel. 

480 

898 

1,348 

765 

995 

1,493 

1,494 

1,345 

1,969 

2,026 

1,509 

2,144 

3,624 

1,748 

2,479 

3,389 

2,033 

2,877 

3,434 

2,460 

3,446 

3,441 

2,830 

3.9S1 

4,116 

3,191 

4,449 

3,975 

3,383 

4,732 

4,267 

3,452 

4,816 

3,795 

3,592 

5.035 

4,239 

3,635 

5,072 

4,533 

3,658 

5,086 

4,969 

3,685 

5,115 

1870. 
1871. 
1875. 
18S0. 
1885. 
1890. 
1895. 
19(». 
1905. 
1906. 
1907. 
1908. 
1909. 
1910. 
1911. 


054,915 
1,142,230 
2,940,708 
4,344,519 
8,985,411 
9, 749, 129 
11,833,637 
13,699,237 
18,310,442 
18, 810, 713 
20,551,982 
-19,110,831 
21,500,847 
23,054,901 
25,417,853 


436,609 
761,467 
2,009,984 
3,057,421 
6,335,752 
6,890,094 
8,448,383 
9, 738, 152 
13, 134, 105 
13,445,504 
14,728,434 
13,633,283 
15,407,527 
10,581,898 
18,324,794 


26,758 
48,422 
84,446 
101,551 
205, 951 
161,352 
216, 938 
282,511 
252,691 
353,881 
243,826 
218,967 
213, 122 
234,320 
275, 651 


The  third  decade  of  the  operation  of  the  Suez  Canal,  1890-1900,  was  one  of  only  moderate  traffic  develop- 
ment. Serious  business  depressions  in  difl^erent  parts  of  the  world  during  tliis  decade  checked  the  rate  of  com- 
mercial expansion.  From  1890  to  1900  the  Suez  traffic,  net  vessel  tonnage,  rose  from  6,800,000  to  9,738,000 
tons,  the  absolute  increase  being  less  than  3,000,000  tons  and  the  rate  of  increase  43.2  per  cent — only  a  third 
of  the  rate  that  had  prevailed  from  1880  to  1890. 

Since  1900,  the  traffic  of  the  Suez  Canal  has  risen  rapidly.  The  net  tonnage  in  1910  was  16,581,000,  70.2 
per  cent  above  the  figures  for  19p0.  In  1911,  the  net  tonnage  advanced  to  18,324,794  tons,  or  to  69.3  per 
cent  above  the  figure  for  1901.  Europe  and  the  eastern  part  of  the  United  States  are  building  up  a  large  com- 
merce with  the  countries  east  of  the  Suez  Canal.  The  countries  of  the  Indies,  Oceania,  and  the  Orient  are 
entei-ing  upon  the  development  of  their  resources  and  industries  with  the  increasing  assistance  of  western 
capital;  and  the  consequent  expansion  of  the  commerce  of  those  countries  is  indicated  by  the  rapid  growth  of 
the  traffic  of  the  Suez  Canal. 


96 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 


The  frequent  enlargements  in  the  dimensions  of  the  canal  have  permitted  the  use  of  larger  ships  and  have 
favored  the  growth  of  traffic.  The  draft  aUowed  vessels  in  the  canal  was  increased  in  1890  from  24  feet  7 
inches  to  25  feet  7  inches,  in  1902  to  26  feet  3  inches,  in  1906  to  27  feet,  and  in  1908  to  28  feet.  By  1915,  when 
the  present  improvements  shall  have  been  completed,  vessels  drawing  between  31  and  32  feet  will  be  permitted 
to  use  the  canal.  The  average  size  of  the  vessels  that  passed  through  the  Suez  Canal  in  1911  was  more  than 
four  times  the  average  in  1870  and  more  than  double  the  average  in  1885,  the  mean  tonnage  per  vessel  being 
898  net  tons  in  1870,  1,509  tons  in  1880,  2,033  tons  in  1890,  2,830  tons  in  1900,  3,658  tons  in  1910,  and  3,685 
tons  in  1911.  The  number  as  well  as  the  size  of  the  vessels  has  increased  rapidly  each  decade,  with  the  exception 
of  the  10  years  from  1890  to  1900  when  the  growth  in  the  worltl's  commerce  was  at  a  slackened  pace.  In 
1911,  nearly  5,000  vessels — 4,969 — made  use  of  the  canal,  an  average  of  nearly  14  per  day  for  each  of  the  365 
days  of  the  year. 

The  number  of  passengers  through  the  Suez  Canal  varies  from  year  to  year.  The  total  for  1911 — 275,651 — 
was  somewhat  less  than  the  figures  for  1900.  The  maximum  for  any  one  year  was  reached  in  1906,  when, 
at  the  time  of  the  war  with  Japan,  Russia  took  a  large  number  of  naval  vessels  and  troops  through  the  canal. 
The  figures  as  to  passenger  traffic  are  given  in  Table  IV. 

Table  V  shows  how  the  present  traffic  of  the  Suez  Canal  was  distributed,  in  1909,  1910,  and  1911,  among 
the  various  destinations  east  of  the  canal,  wliile  Table  VI  distributes  tliis  traffic  among  the  leading  regions  east 
of  the  canal  for  a  period  of  16  years.  Table  VII,  compiled  from  various  sources,  subdivides  the  Suez  traffic 
among  North-Atlantic  countries;  it  covers  a  period  of  16  years  and  shows  the  rate  of  increase  in  the  traffic  to 
and  from  the  countries  named. 

Table  V SUEZ  CANAL  TRAFFIC  DISTRIBUTED  BY  REGIONS  BEYOND  THE  SUEZ,  IN  N^ET  TONS. 


1911 

1910 

1909 

528,000 

710,000 

324,000 

3,723,000 

4,639,000 

1,657,000 

674,000 

1,467,000 

2,584,000 

1,904,000 

106,000 

368,000 

510,000 

223,000 

3,359,000 

4,300,000 

1,287,000 

700,000 

1,385,000 

2,592,000 

1,704,000 

154,000 

361,000 

454,000 

191,000 

3,114,000 
4,214,000 

1,121,000 

534,000 

1,264,000 

2,464,000 

1,645,000 

155,000 

18,325,000 

16,582,000 

15,407,000 

Table  VI.— GROWTH  OF  SUEZ  CANAL  TRAFFIC  TO  AND  FROM  REGIONS  BEYOND  THE  SUEZ  (1895-1911).' 


Years. 

East 
Alrica. 

Bombay 
and 
West 
India. 

Calcutta 
and 
East 
India. 

Straits, 
.     Siam, 
Philippines, 
and 
Dutch 
East 
India. 

China, 

Cochin 

China,  and 

Japan. 

Australia. 

other 

regions. 

Total. 

1896..                                      

357,000 
269,000 
404,000 
482,000 
510,000 
710,000 
163.9 

2,015,000 
1,649,000 
1,128,000 
2,623,000 
3,359,000 
3,723,000 
125.7 

2,417,000 
2,411,000 
2,763,000 
3,722,000 
4,300,000 
4,639,000 
92.4 

1,003,000 
1,085,000 
1,372,000 

i,6n,ooo 

1,987,000 

2,331,000 

114.8 

1,400,000 
1,578,000 
2,756,000 
2,943,000 
3,977,000 
4,060,000 
157.2 

840,000 

871,000 

864.000 

995,000 

1,704,000 

1,940,000 

118.5 

416,000 
697,000 
451,000 
698,000 
745,000 
958,000 
37.4 

8.448,000 

8,560,000 

1900 

9,738,000 

1905 

13,134,000 

1910 

16,582,000 

1911 

18,325,000 

114.7 

1  See  Aimual  Report  of  Suez  Canal  Co.,  June  3, 1912,  p.  17. 


PANAMA  CANAL  TEAFFIC  AND  TOLLS. 


97 


Table  VII.— GROWTH   OF   SUEZ   CANAL  TRAFFIC  (NET   TONNAGE)  TO  AND  FROM   EUROPE,  EASTERN   UNITED 
STATES,  AND  OTHER  COUNTRIES  WEST  OF  SUEZ,  1895-1911.' 


Years. 

Great 
Britain. 

Germany . 

France. 

Belgium, 
Holland, 
Denmark, 
Sweden, 

and 
Norway. 

Greece, 
Turkey, 

and 
Egypt. 

Italy  and 
Austria- 
Hungary. 

United 
States. 

Other 
regions. 

Total. 

4,614,000 
4,119,000 
4,224,000 
5,865,000 
6,626,000 
8,202,000 
8,808,000 
113.7 

713,000 
818,000 
1,298,000 
1,571,000 
1,807,000 
2,370,000 
2,643,000 
223.0 

1,116,000 
988,000 
1,198,000 
1,573,000 
1,679,000 
1,611,000 
1,550,000 
56.8 

618,000 

626,000 

771,000 

1,196,000 

1,430,000 

1,783,000 

2,066,000 

230.0 

399,000 

533,000 

362,000 

1,014,000 

1,004,000 

399,000 

581,000 

9.0 

358,000 
640,000 
530,000 
805,000 
944,000 
980,000 
940,000 
46.8 

123,000 
194,000 
661,000 
741,000 
934,000 
843,000 
1,295,000 
567.5 

507,000 
642.000 
694,000 
369,000 
304,000 
394,000 
442,000 
(») 

8,448,000 

8,560,000 

1900                                 

9,738,000 

13,134,000 

14,728,000 

16,582,000 

18,325,000 

114.7 

1  Compagnie  UniverseUe  du  Canal  Maritime  de  Suez,  Le  Canal  Maritime  de  Suez,  Tableau  7;  British  Documents  "Commercial  No.  3  (1911),  The  Suei  Canal,"  p.  4; 
and  Statement  of  Suez  Canal  Co.,  Mar.  29,  1912. 
*  Decrease. 

During  the  period  1895  to  1911,  the  countries  bej'ond  Suez  whose  commerce  through  the  canal  increased 
most  rapidly  were  East  Africa,  China,  Japan,  and  Australia.  India  and  southern  Asia,  however,  make  largest 
use  of  the  canal,  less  than  40  per  cent  of  the  total  Suez  traffic  being  contributed  by  the  commerce  of  the  countries 
east  and  north  of  Singapore.  The  Panama  Canal  can  not  invade  the  main  traffic  field  of  the  Suez  route — 
the  countries  of  southern  Asia,  East  Africa,  the  Red  Sea,  and  the  Persian  Gulf.  Their  conmierce  will  con- 
tinue to  move  via  the  Suez  whatever  the  tolls  of  the  Panama  Canal  may  be.  The  competitive  region  of 
the  two  canals  lies  east  of  Singapore,  and  the  major  share  of  the  commerce  of  that  region  with  western  Europe 
will  continue  to  move  via  Suez.  It  was  estimated  in  Chapter  II  that  about  5  per  cent  of  the  trade  of  Europe 
with  Japan  and  10  per  cent  of  Europe's  trade  with  Austraha  would  use  the  Panama  Canal. 

Table  VIII.— NET  TONNAGE  OF  THE  SUEZ  CANAL,  DISTRIBUTED  BY  NATIONALITY  OF  VESSELS,  1870-1911.' 


Flags. 

1870  to 
1875 

1876  to 
1880 

1881  to 
1885 

1886  to 
1890 

1891  to 
1895 

1896  to 
1900 

1901  to 
1905 

1906  to 
1910 

1911 

Percent. 
72.8 

1.3 

3.3 
10.1 

3.9 
(») 
.7 
.9 
.3 
.2 

1.3 
.5 

1.1 
.2 
.1 

1.3 

Percent. 

78.1 
1.2 
4.7 
7.3 
2.3 
.1 
.4 
2.6 
.5 

1.7 
.4 
.1 
.1 
(') 
.5 

Per  cera. 

78.3 

2.6 

3.9 

8.0 

1.8 

.1 

.6 

2.2 

.1 

(') 

1.4 

.5 

.1 

<») 

(•) 

.4 

Percent. 

T7.1 
4.5 
3.7 
6.2 
2.0 
.1 
.5 
3.1 
(') 

m 

1.0 

.8 
.3 

(') 
(') 

•1 

Percent. 

75.2 
7.5 
4.0 
6.0 
1.9 
(') 
.8 
1.7 
(') 
(') 
1.0 
1.1 
.5 
.3 
(') 
(•) 

Per  cent. 

65.3 

11.4 

4.6 

6.6 

2.6 

1.7 

2.0 

2.1 

.3 

(') 

2.5 

2.0 

.4 

(') 

.3 

.2 

Percent. 

62.3 

15.4 

4.5 

6.5 

3.5 

1.2 

2.3 

1.5 

.4 

P) 

.7 

.8 

.i 

m 

.2 
.2 

Per  cent. 
62.3 
15.9 
5.0 
5.5 
3.4 
2.0 
1.7 
1.4 
.7 
.4 
.5 
.5 
.3 

m 

.3 
.1 

Per  cent. 
64.0 

15.2 

5.3 

4.5 

3.4 

2.0 

1.7 

Italian 

1.1 

.6 

.5 

.4 

.3 

.7 

(») 

(») 

.3 

1  From  Compagnie  UniverseUe  du  Canal  Maritime  de  Suez,  Le  Canal  Maritime  de  Suez,  Tableau  VI;  British  Documents,  Commercial  No.  3,  (1911),  p.  7;  Statement  of 
Suez  Canal  Co.,  Mar.  29, 1912. 
>  Less  than  0.1  per  cent. 


98 


PANAJMA  CANAL  TKAFFIC  AND  TOLLS. 


The  nationalitj'  of  the  vesesls  engaged  in  commerce  via  the  Suez  Canal  is  showm  in  Table  VIII.  Nearly  four- 
fifths  of  the  shipping  is  under  the  British  and  German  flags,  the  British  vessels  comprising  64  per  cent  of  the  total 
in  1911.  The  Dutch  flag  is  gaining  and  the  French  flag  is  losing  in  percentage  of  the  total  shipping.  The  only 
non-European  nation  whose  shipping  makes  much  use  of  the  Suez  Canal  is  Japan.  While  the  volume  of  British 
shipping  using  the  canal  has  increased  absolutely,  it  includes  a  smaller  percentage  of  the  total  tonnage  than  it  cUd 
from  ISSl  to  1SS5,  when  78.3  per  cent  of  all  the  shipping  was  British.  Tliis  is  due  to  the  increase  of  German 
vessels  and  to  the  growth  in  the  tonnage  of  ships  flj-ing  the  flags  of  the  Netherlands,  Japan,  and  Sweden.  The 
tonnage  of  French,  Austro-Hungarian,  Russian,  Italian,  and  Norwegian  vessels  using  the  Suez  has  increased 
absolutely,  but,  as  in  the  case  of  British  vessels,  has  declined  in  percentage  of  the  total. 

IV.  Revenues  and  Expenses  of  the  Suez  Canal. 

The  revenues  of  the  Suez  Canal  Co.  are  derived  mainly  from  toUs  upon  vessels  and  passengers.  The  minor 
sources  of  income  are  the  charges  for  bertliing  or  anchorage  of  ships,  for  towage  and  pUotage,  and  the  receipts 
from  certain  outside  operations.     The  foUoming  ' '  transit  dues  "  and  other  charges  are  in  force : 

1.  The  tolls  on  vessels  since  January  1,  1912,  have  been  6.75  francs  ($1,302)  per  ton  net  register  for  loaded 
vessels,  with  a  reduction  of  2.50  francs  per  ton  for  vessels  in  ballast.  On  the  first  of  January,  1913,  the  rate 
becomes  6.25  francs  ($1,206)  per  net  ton  for  loaded  vessels.  The  passenger  toUs  are  10  francs  per  passenger  above 
12  j-ears  of  age  and  5  francs  for  each  child  from  3  to  12  years  old.  For  vessels  using  the  canal  only  between  one 
of  the  termini  and  Ismailia,  the  point  at  which  the  raUroad  from  Cairo  reaches  the  canal,  the  vessel  and  passenger 
toUs  are  one-half  the  regular  thi-ough  rates. 

The  passenger  toUs  have  remained  unchanged  since  the  beginning,  but  the  vessel  toUs  have  been  reduced  from 
time  to  time  since  1874,  when  the  maximum  rate  of  13  francs  ($2.51)  per  net  ton  was  put  in  force.  The  rates 
charged,  and  the  changes  made  in  the  rates,  from  1869  to  the  present  are  stated  in  Table  IX. 

Table  IX,— SUEZ  CANAL  TOLLS  ON  VESSELS. 


Dates.                                    I          Tolls  per  net  vessel  ton.i 

Dates. 

Tolls  per  net  vessel  ton.i 

10  francs. 
10  francs  .2 

10  francs  plus  3  francs  surtax. 
10  francs  plus  2.50  francs  surtax. 
10  francs  plus  2  francs  surtax. 
10  francs  plus  1.50  francs  surtax. 
10  francs  plus  1  franc  surtax. 
10  francs  plus  0.50  franc  surtax. 

Jan.  1, 18S4 

10  francs. 

Jan.  1, 1885 

9.50  francs. 

Jan.  1, 1893 

9  francs. 

Jan.  1 ,  1903 

8. 50  francs. 

Jan.  1, 1906 

7.75  francs. 

Jan.  1, 1911 

7.25  francs. 

Jan.  1, 1912 

6.75  francs. 

Jan.  1, 1913 

6.25  francs.3 

1  Vessels  in  ballast  pay  2.50  francs  less  per  net  ton  than  loaded  vessels  pay. 


'  On  gross  tonnage. 


'  Announced  June  3, 1912,  to  become  effective  Jan.  1. 1913. 


The  Suez  Canal  Co.'s  concession  provided  that  the  toUs  upon  vessels  should  not  exceed  10  francs  per  "ton  of 
capacity,"  and  the  statute  creating  the  company  specified  that  whenever  the  rate  of  dividends  paid  exceeds  25 
per  cent,  the  rate  of  toUs  should  be  reduced.  The  concession  stipulated  that  the  tolls  should  "be  collected 
■without  exception  or  favor  from  all  ships  under  like  conditions. " 

As  is  explained  in  the  volume  upon  "The  Measurement  of  Vessels," '  there  was  a  serious  dispute  during  the 
first  five  years  of  the  operation  of  the  canal  as  to  the  meaning  of  "ton  of  capacity."  The  shipping  world  con- 
tended that  net  register  tonnage  was  meant,  while  the  officials  of  the  company  held  that  either  the  gross  register 
tonnage  or  the  cargo  tonnage  capacity  of  the  vessel  might  be  made  the  basis  of  toUs.  The  toUs  were  first  charged 
upon  the  net  register  tonnage  of  vessels  as  stated  in  the  sliip's  papers.  The  company  found  this  unsatisfactory, 
because  dissimilar  rules  prevailed  in  different  countries  for  determining  net  tonnage,  and  because  the  revenues  of 
the  company  from  the  toUs  upon  net  tonnage  were  insufficient.  In  1872,  the  company  began  charging  toUs  of 
10  francs  per  gross  register  ton.     This  was  objected  to  by  the  shipping  interests  of  the  leading  countries  of  Europe 

» Report  by  Emory  R.  Johnson,  1912,  Government  Printing  Office,  Washington. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  99 

and  the  question  was  made  the  subject  of  diplomatic  negotiations.  The  canal  company  was  also  proceeded 
againsl  in  the  French  courts  upon  complaint  of  the  leading  steamship  company  in  France. 

The  Sultan  of  Turkey  was  called  upon  to  rule  upon  the  meaning  of  the  term  "ton  of  capacity,"  and,  in  the 
latter  part  of  1873,  he  convened  the  International  Tonnage  Commission  at  Constantinople  to  decide  the  question. 
This  commission  decided  that  the  Suez  tolls  should  be  based  upon  net  vessel  tonnage,  and  formulated  a  set  of 
rules  for  determining  net  tonnage.  To  enable  the  canal  company  to  increase  its  income,  the  International  Com- 
mission provided  that  the  company  might  increase  its  rate  of  toUs  of  10  francs  per  net  ton  by  a  "surtax"  of 
3  francs,  the  surtax  to  be  reduced  as  the  traffic  of  the  canal  increased. 

When  the  canal  tomiage  reached  2,100,000  tons  annually  the  surtax  was  to  decline  to  2.50  francs,  when  the 
tonnage  became  2,200,000  tons  the  surtax  was  to  be  reduced  to  2  francs,  each  increase  of  100,000  tons  per  year 
bringing  about  a  decrease  of  50  centimes  in  the  surcharge.  When  the  annual  tonnage  became  2,600,000  tons  the 
surtax  was  to  be  abolished.  Later,  in  1876,  in  an  agreement  with  Great  Britain,  which  had  become  a  large  stock- 
holder, the  company  agreed  that  the  first  reduction  of  50  centimes  in  the  surtax  should  be  made  January  1,  1877, 
the  second  January  1,  1879,  the  third  Januarj^  1,  1881,  the  fourth  on  January  1,  1882,  the  fifth  January  1,  1883, 
and  the  sixth  January  1,  1884,  on  which  date  the  surtax  ceased  and  the  toU  became  10  francs  per  net  ton.  The 
growth  of  traffic  since  1884,  especially  since  1900,  has  been  so  rapid  and  the  revenues  of  the  company  have 
increased  so  largely  that  the  tolls  have  been  reduced  every  few  years,  50  centimes  at  a  time,  until,  effective  Janu- 
ary 1,  1913,  the  rate,  for  loaded  vessels,  has  become  6.25  francs  ($1,206)  per  net  ton. 

2.  Berthing  or  anchorage  dues  are  collected  at  Port  Said,  Ismailia,  and  Suez  at  the  rate  of  2  centimes  per  net 
ton  per  day,  not  including  the  first  24  hours. 

3.  Towage. — When  towage  is  compulsoiy  a  charge  of  50  centimes  per  net  ton,  ^vith  a  maximum  of  2,500 
francs,  is  exacted  of  steamers  whose  engines  assist,  or  are  in  readiness  to  assist,  the  tug;  and,  for  steamers  whose 
engines  are  unable  to  assist  the  tug  and  for  sailmg  vessels  of  over  400  tons  gross  register,  the  charge  is  1  franc  per 
net  ton,  with  a  maximum  of  5,000  francs.  \'\Tien  towage  is  at  the  request  of  the  vessel's  captain  the  charges  are 
1  franc  per  net  ton  with  a  minimum  of  1,200  francs  for  steamers  whose  engines  are  in  readiness  to  assist  the  tug, 
and  2  francs  per  net  ton  with  a  minimum  of  2,000  francs  for  vessels  not  desiring  to  assist  the  tug.  For  towing 
vessels  one-half  of  the  length  of  the  canal,  one-half  of  the  foregoing  towage  dues  are  charged.  The  towage 
charges  for  sailing  vessels  of  400  gross  tons  or  less,  and  for  lighters,  dredges,  and  other  floating  appliances  are  fixed 
by  private  agreement.  For  towing  vessels  to  or  from  the  roads,  upon  application,  the  charge  is  10  centimes  per 
net  ton  with  a  minimum  of  25  francs;  while  the  charge  for  greater  distances  is  fixed  by  private  agi-eement.  If 
vessels  require  a  tug  to  act  as  a  tender,  the  charge  is  1,200  francs  per  day  for  tugs  of  the  first  class  and  800  francs 
per  day  for  tugs  of  the  second  class.  Ships  towed  or  conveyed  by  approved  private  tugs  belonging  to  the  owners 
of  the  ships  are  required  to  pay  50  centimes  per  ton  as  towage  dues. 

4.  Pilotage  charges. — For  entering  or  clearing  Port  Said  pilotage  is  collected  from  vessels,  not  going  through 
the  canal,  at  the  rate  of  25  francs  for  steamers  and  1 0  francs  for  sailing  vessels  by  day,  and  at  the  rate  of  50  francs 
and  20  francs  respectively  for  steamers  and  sailing  vessels  by  night.  For  vessels  going  tlirough  the  canal,  there  is 
no  pilotage  charge  at  Port  Said  by  day;  but  hj  night  a  charge  of  25  francs  is  collected  from  steamers  and  10  francs 
from  sailing  vessels.  At  Suez,  no  pUotage  dues  are  charged.  "When  the  pilot  is  kept  on  board  beyond  the  time 
required  for  pUotage  proper,  a  charge  of  20  francs  per  day  is  due. " 

5.  Revenue  from  outside  operations. — The  canal  company  operates  a  waterworks  plant  for  the  filtration  and 
distribution  of  water  throughout  the  canal  zone  and  at  Port  Said,  Ismailia,  and  Suez.  The  company  and  the 
Egyptian  Government  are  jointly  interested  in  the  improvement,  renting,  and  sale  of  land  in  the  canal  zone,  the 
profits  of  which  are  di\aded  between  the  company  and  the  Government.  Some  revenue,  as  is  shown  below  in 
Table  XI,  is  derived  from  lands  held  by  the  company  as  sole  proprietor.  The  company  receives  an  annuity 
paid  by  the  Egyptian  Government  for  the  cession  of  the  trolley  line  from  Port  Said  to  IsmaUia,  and  some 
interest  is  obtained  from  invested  funds. 

Of  the  total  gross  receipts  of  the  company  in  1911  (138,038,224.74  francs),  134,763,053.95  francs  were 
obtained  from  "transit  and  navigation  dues,"  including  steamship  toUs,  passenger  toUs,  sailing-vessel  tolls, 
pilotage,  towage,  wharfage  and  berthing,  lease  of  floating  equipment,  sundries,  and  lease  of  lands  in  the  free 
zone  of  Port  Said;  wliile  the  income  from  all  the  remaining  sources  aggregated  3,275,170.79  francs.  The 
receipts  have  reached  this  high  level  despite  the  frequent  reduction  in  the  rate  of  toUs. 


100 


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102  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  gross  earnings  and  transit  and  navigation  receipts  for  eaclr  year  from  1870  to  1911  are  shown  in  Table 
X  and  Chart  II.  Tlie  fluctuations  in  the  gross  earnings  correspond  closely  to  the  variations  in  the  transit  and 
navigation  receipts,  except  during  the  first  decade,  when  the  latter  increased  at  a  more  rapid  rate.  Throughout 
the  period  of  dechning  tolls  the  gross  earnings  of  the  company,  as  the  result  of  the  growth  of  traffic,  have  advanced 
at  a  rapid  rate.  During  the  first  decade,  gross  earnings  increased  350  per  cent,  during  the  second  decade  68.4 
per  cent,  the  third  decade,  32.6  per  cent,  and  from  1900  to  1910,  43  per  cent.  During  the  decade  ending  in  1911 
the  gross  earnings  rose  33.8  per  cent.  Throughout  the  history  of  the  Suez  Canal,  the  volume  of  tonnage  has 
increased  more  rapidly  than  the  tolls  have  been  reduced. 

The  increase  in  net  earnings  is  also  shown  in  Table  X  and  Chart  II.  The  net  earnings  are  the  gross  earn- 
ings minus  the  expenses  of  operation,  administration,  and  maintenance.  From  the  net  earnings  are  paid  the 
"public  charges";  i.  e.,  the  capital  charges,  interest  on  securities,  and  the  sums  devoted  to  peiunanent  additions 
and  betterments.  During  the  decade  1900  to  1910,  the  net  earnings  increased  43.7  per  cent,  and  during  the 
decade  1901  to  1911,  32.7  per  cent. 

Table  X  and  Chart  III  show  that  the  administrative,  operating,  and  maintenance  expenses  of  the  com- 
pany have  increased  at  varying  rates.  The  greatest  recent  increase  has  been  in  maintenance  costs,  which 
include  a  part  of  the  sums  spent  for  enlargement,  and  which  have  varied  from  a  minimum  of  1,544,269  francs 
in  1887  to  6,702,731  in  1908.  During  the  decade  1901  to  1911  the  outlay  for  maintenance  increased  70  8  per 
cent,  while  operating  expenses  rose  25.8  per  cent,  and  administrative  expenses  42  4  per  cent.  During  the 
same  decade  the  operating,  maintenance,  and  administrative  expenses  combined  increased  44.8  per  cent  as 
compared  with  an  advance  of  33.8  per  cent  in  gross  earnings. 

The  company's  operating  ratio,  i  e.,  the  ratio  of  gross  earnings  to  the  sum  of  operating,  maintenance,  and 
administrative  expenses  in  1911  was  9  8  per  cent,  in  1910,  9.19  per  cent,  and  in  1900,  9  6  per  cent.  It  has 
greatly  declined  since  the  earlier  years  of  the  canal's  liistory,  when  the  volume  of  its  traffic  was  small.  The 
operating  ratio  in  1875,  when  the  work  of  operatmg  the  canal  was  fairly  under  way,  was  19.3  per  cent;  in  1870, 
the  first  year  of  the  canal's  operation,  it  was  64  per  cent. 

The  "public  charges,"  or  the  interest  upon  and  amortization  of  the  company's  outstanding  bonds  and 
notes,  have  risen  from  10,541,537  francs  in  1870  to  17,376,276  95  in  1911.  During  the  decade  1901  to  1911  the 
sums  set  aside  for  this  purpose  declined  4  2  per  cent,  while  during  the  previous  decade  they  increased  1  4  per  cent. 

The  total  sum  paid  as  dividends  and  for  the  amortization  of  the  interest  upon  the  company's  shares  in  1911 
was  71,904,125  francs,  an  increase  of  34  per  cent  over  what  it  was  in  1901.  During  the  first  decade  of  the  com- 
pany's operation  these  dividend  and  amortization  payments  increased  88.3  per  cent;  during  the  second  decade, 
97  per  cent;  the  third  decade  25.6  per  cent,  and  during  the  years  1900-1910,  46.9  per  cent.  The  dividends  per 
share  of  500  francs  were  165  francs  in  1911,  or  33  per  cent.  The  fluctuations  and  the  large  increase  in  the  divi- 
dend paid  are  shown  in  Table  X  and  on  Chart  it. 

The  difference  between  the  gross  earnings  and  the  expenditures  for  admmistration,  operation,  mainte- 
nance, and  capital  charges  was  35,208,320.17  francs  in  1911;  and  from  tlris  were  taken  the  sums  devoted  to 
surplus,  insurance,  permanent  additions  and  betterments,  worlonen's  pensions  and  relief,  founders'  profits, 
ancl  pajTuents  to  the  Egyptian  Government.  The  income  and  expenses  for  the  year  ending  December  31, 
1911,  are  shown  in  detail  in  Table  XL 


CHAPTER   VL 


THE   KAISER   WILHELM   CANAL:    ITS   TRAFFIC, 
TOLLS,  AND    REVENUES. 

105 


CHAPTER  VI. 


THE  KAISER  WILHELM  CANAL:  ITS  TRAFFIC,  TOLLS,  AND  REVENUES. 
I.  Location  and  Dimensions. 


The  Imperial  Government  of  Germany  constructed  the  Kaiser  Wilhehii  or  Kiel  Canal  to  provide  a  water- 
way within  German  territory  connecting  the  Baltic  and  North  Sea  ports  of  the  Empire.  The  natural  route 
around  Denmark  is  circuitous,  dangerous  because  of  storms,  and  is  guarded  by  foreign  powers.  The  North 
Sea-Baltic  Canal  was  begun  in  1887  and  completed  in  1895,  and,  though  constructed  primarily  for  mihtary 
and  naval  reasons,  it  has  proven  to  be  of  great  value  to  the  commerce  of  Germany. 

The  canal  connects  Brunsbuettel  Harbor,  on  the  Elbe,  with  Holtenau,  on  Kiel  Bay.  As  shown  by  Plate  6  in 
the  pocket  at  the  end  of  this  volume,  the  waterway  passes  through  lowlands  and  lakes  and  along  river  valleys. 
The  canal  is  61  miles  long;  and,  as  first  constructed,  had  a  minimum  breadth  of  72  feet  (22  meters)  at  the 
bottom  and  213  feet  at  the  surface  and  a  minimum  depth  of  29  feet  6  inches  (9  meters).  The  traffic  rules 
of  the  canal  administration  permitted  vessels  to  use  the  canal  with  a  draft  of  26.24  feet,  beam  of  65.60  feet, 
length  of  443  feet,  and  height  of  mast  131.2  feet.  Locks  were  provided  only  at  the  ends,  the  canal  being  at 
sea  level.     The  cost  amounted  to  about  $37,128,000  (156,000,000  marks). 

Table  I  shows  the  saving  in  distance  effected  by  the  canal  for  routes  between  North  Sea  ports  and  the 
Bakic  as  compared  with  the  sea  route  around  Skagen. 

Table  I.— DISTANCE  SAVED 'TO  AND  FROM  THE  BALTIC  VIA  THE  KAISER  WILHELM  CANAL  AS  COMPARED  WITH 

THE  SEA  ROUTE  AROUND  SKAGEN. 


Between  the  Baltic  and— 

Nautical 

miles 
saved. 

Between  the  Balti 

'and— 

Nautical 
miles 
saved. 

424.8 

322.8 

282.8 

236.8 

236.8  I 

236.8 

238.8 

238.8 

Hull 

106.8 

83.8 

The  rapid  increase  in  the  traffic  of  the  canal  and  the  growth  in  the  size  and  draft  of  both  merchant  and 
naval  vessels  made  the  necessity  for  enlarging  the  waterway  evident  at  the  end  of  a  decade  of  operation.  The 
reconstruction  of  the  canal  was  authorized  by  the  Imperial  Parliament  in  1907,  and  work  was  started  in  1909. 
It  is  expected  that  the  enlargements  will  be  completed  in  1914. 

Wlien  the  improvements  now  in  progress  are  carried  out,  the  Kaiser  Wilhekn  or  Siel  Canal  will  have  a 
bottom  width  of  144.35  feet  (44  meters),  a  surface  breadth  of  334.64  feet  (102  meters),  and  a  minmium  depth 
of  36.08  feet  (11  meters).  At  10  places  the  canal  is  widened  for  distances  of  600  to  1,100  meters,  and  at  one 
point  for  a  length  of  1,400  meters.  The  two  new  twin  locks  at  the  termini  of  the  canal  are  to  have  a  usable 
length  of  1,082.67  feet  (330  meters),  a  width  of  147.63  feet  (45  meters),  and  a  depth,  varjnng  with  the  stage  of 
the  water,  of  39.37  feet  (12  meters)  to  45.17  feet  (13.77  meters).  For  only  a  short  portion  of  but  42  days  each 
year,  will  the  depth  be  at  the  minimum  of  12  meters.  Among  the  other  improvements  being  made  are  the  enlarge- 
ment of  the  outer  harbors  and  the  approaches  to  the  locks,  the  construction  of  a  central  electric  plant  for  fight- 
ing the  canal  and  for  other  purposes,  the  substitution  of  new  and  larger  bridges  for  those  now  crossing  the  canal, 
and  the  building  of  a  drainage  and  navigation  canal  between  the  Old  Eider  River  and  the  Kiel  Canal. 

107 


108 


PANMIA  CANAL  TRAFFIC  AND  TOLLS. 
II.  Traffic  History  of  the  Kaiser  Wilhelm  Canal. 


Though  the  Kaiser  Williehn  Canal  was  constructed  primaiil}"  for  military  and  naval  reasons,  it  has  been 
largely  used  by  commercial  vessels.  Table  II  shows  the  growth  in  the  number  and  net  tonnage  of  ships  using 
the  canal  from  1896  to  1910.  In  the  last-named  year  vessels  totaling  7,231,458  net  tons,  not  including  war 
vessels  or  ships  in  the  service  of  the  canal  administration,  passed  through  the  canal.  The  increase  since  1896, 
the  first  full  year  of  the  canal's  operation,  had  been  312  per  cent,  and  the  increase  during  the  last  decade  70.7 
per  cent.  In  1910,  43,328  vessels  passed  through  the  canal,  83.4  per  cent  of  them  bemg  vessels  Hying  the  Ger- 
man flag.  Steamers  contributed  76  per  cent  of  the  total  tonnage,  wliile  sailing  vessels  and  unrigged  craft  made 
up  the  remainder.  The  average  tonnage  of  the  steamers  was  but  278  net  tons,  and  that  of  sailing  and  unrigged 
vessels  only  71.6  tons.  Only  46.1  per  cent  of  the  total  number  of  merchant  vessels  using  the  canal  were  steam- 
ers, though  they  comprised  76  per  cent  of  the  net  tonnage.  The  small  coasting  vessels  operated  on  the  North 
and  Baltic  seas  make  large  use  of  the  canal  and  account  for  most  of  its  traffic. 

Table  II.— NmiBER  AND  TONNAGE  OF  VESSELS  USING  THE  KAISER  WILHELM  CANAL,  CALENDAR  YEARS  1896 

TO  1910. 


Total  number  of  vessels 

Total  net  tons 

Bninsbuettel-Holtenau: 

Number  of  vessels 

Net  tons 

Holtenau-Bnmsbuettel: 

Number  of  vessels 

Net  tons 

German  ships: 

Number  of  vessels 

Net  tons 

Foreign  ships: 

Number  of  vessels 

Net  tons 

Steamers: 

Number  of  vessels 

Net  tons 

Steamers  (loaded): 

Number  of  vessels 

Net  tons 

Sail  and  unrigged  craft: 

Number  of  vessels 

Net  tons 

Sail  and  unrigged  craft  (loaded): 

Number  of  vessels 

Net  tons 


43.328 
7,231.458 


21.126 
3,387.034 


22.202 
3,844,424 


36,163 
4,403,177 


7,165 
2,828,281 


19,994 
5,560.002 


12,712 
4, 739, 513 


23,334 
1,671,456 


15,135 
1,100,320 


35,326 
6,267,805 


17,091 
2,859,647 


18,235 
3,408,158 


28,994 
3,740,713 


6,3.32 
2.527,092 


15,596 
4,923,116 


10,825 
4,208,045 


19,7.30 
1,344,689 


12,461 
875,453 


34,121 
6,012.178 


16.393 
2.655,220 


17,728 
3,356,958 


27,713 
3,472,737 


6,408 
1,539,441 


10,833 
4,053,460 


12,321 
850,833 


34, 187 
6,045,963 


16,502 
2.626,628 


17,685 
3,419,335 


28.148 
3.547,368 


6,039 
2,498,595 


15,705 
4,814,589  i 


10,932 
4,116,912 


18,482 
1,231,374 


12,364 
839,074 


29,470 
4,198,754 


13.492 
1,674,266 


15.528 
2.524,488 


25, 150 
2,593,525 


4,320 
1,605,229 


12,117 
3,352,300 


8,924 
;.  956, 452 


17,353 
846,454 


11,083 
588,006 


20,06S 
1,751,065 


9,959 
828,654 


10,109 
922, 4U 


17,999 
1,188,013 


2,069 
563,052 


8,511 
1,321,311 


11,557 
429,754 


7,378 
297,265 


During  the  fiscal  year  ending  March  31,1910,  45,569  vessels,  of  7,579,33a  net  tons,  used  the  canal.  Of  tliis 
tonnage,  5,745,489  net  tons  consisted  of  steamers,  685,160  of  sailing  vessels,  and  1,148,690  of  barges  and  lighters. 
Of  the  steam  tonnage,  2,318,250  tons  consisted  of  regular-line  steamers.  The  average  size  of  all  steamers  was 
273.17  net  tons,  and  only  281  steamers  had  a  tonnage  of  1,000  tons  or  more.  The  average  size  of  sailing  vessels 
was  but  39.3  tons  and  of  barges  and  lighters  162  tons. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


109 


Table  III  divides  the  traffic  of  the  canal  for  the  fiscal  year  1910  according  to  its  origin  and  destination. 
There  were  4,034,035  net  tons  that  moved  westward  from  Holtenau  to  Brunsbuettel,  and  3,545,304  in  the  opposite 
direction.  For  the  west-to-east  shipments  the  leading  points  of  origin  are  the  ports  of  the  Elbe,  German  North 
Sea  ports,  Dutch,  Belgimn,  and  Rhine  ports,  and  the  British  ports.  The  chief  destinations  are  the  German 
Baltic,  the  Finnish,  Danish,  and  Swedish  ports,  and  the  towns  on  the  canal  and  the  upper  Eider  River.  In  the 
eastr-to-west  sliipments,  the  German  Baltic,  Finnish,  Swetlish,  Danish,  and  upper  Eider  ports  are  the  important 
shipping  points. 

Table  III.— ORIGIN  AND  DE-STINATION  OF  KAISER  WILHELM  CANAL  TRAFFIC,  FISCAL  YEAR  ENDING  MAR.  31,  1910. 


Number.      Net  tons 


Number.      Net  tons. 


German  North  Sea  ports 

E  Ibe  ports 

B  rit  ish  ports 

Dutch,  Belgian,  and  Rhine  ports.. 

French  ports 

Other  western  and  southern  ports. 
Canal  ports  and  upper  Eider  ports 

Lower  Eider  ports 

Total 


546,057 
1,401,266 
468,059 
599,394 
50.349 
231.837 
247, 191 
1,161 


1,745 
11,066 


506,623 
1,404,070 
612,960 
985,427 
233, 740 
53,939 
232,828 
4,443 


3,545,304 


4,034.035 


Number.      Net  tons 


Number.      Net  tons. 


German  Baltic  ports 

Finnish  ports 

Swedish  ports 

Norwegian  ports 

Danish  ports 

Canal  and  upper  Eider  ports 
Lower  Eider  ports 

Total 

Grand  total 


9,760 

1,879 
1,995 
40 
1,919 
7,741 


1,534,368 

1,220,970 

583,878 

2,908 

291,507 

399,404 

1,000 


1,244 
1,190 


3,033 
7,231 


1,4K,277 

784,392 
368,579 

9,095 
491,461 
423,037 

5,463 


3,545,304 


The  classes  of  freight  traffic  passing  through  the  canal — stated  in  the  order  of  the  amount  of  net  tonnage  of 
vessels  used  in  transporting  the  goods — are  package  freight,  lumber  and  wood,  coal-,  grain,  stone,  mixed  cargo, 
iron,  and  miscellaneous  bulk  cargo.  The  number  of  vessels  and  net  register  tonnage  required  to  carry  the 
various  classes  of  freight  are  shown  in  Table  IV,  which  covers  the  fiscal  years  1909  and  1910. 


110 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  IV.— NTOIBER    AND    NET    TONNAGE  OF    VESSELS  EMPLOYED  IN  TRANSPORTING  DIFFERENT  KINDS  OF 
FREIGHT  THROUGH  THE  KAISER  WILHELM  CANAL,  FISCAL  YEARS  ENDING  MAR.  31,  19^9  AND  1910. 


Number  of  vessels. 

Net  register  tonnage. 

Cargo. 

1910 

1909 

1910 

1909 

In  vessel  loads: 

1,509 

2,600 

268 

2,149 

6,301 

44 

6,563 

6,607 

179 

16,752 

2,597 

1,344 
2,202 
231 
2,029 
5,944 

546,774 

146,868 

47,823 

938,830 

546,111 

5,645 

1,015.674 

2,679,709 

87,031 

1,499,640 

65,234 

477,379 

94,767 

41,390 

965,383 

. 

426,110 

5,089 
5,956 
230 
13,098 
2,424 

782,310 

2,357,245 

94,587 

1,227,170 

61,357 

45,569 

38,547 

7,579,339 

6,527,698 

III.  Canal  Charges.  ' 

I.  ToUs. — The  revenue  of  the  Kaiser  Wilhelm  Canal  is  derived  mainly  from  tolls  levied  on  the  net  register 
tonnage  of  vessels  using  the  waterway.  On  vessels  engaged  in  tlirough  traffic,  the  tolls  are  graded  according  to 
the  size  or  tonnage  of  the  ships.     For  vessels  with  cargo,  the  schedule  of  tolls  is  as  follows: 

Marks. 

For  the  first  400  net  register  tons: per  net  ton. .     0.  60 

For  each  ton  above  400  up  to  600 do 40 

For  each  ton  above  600  up  to  800 do 30 

For  each  ton  above  800  net  tons do 20 

Minimum  amount  to  be  paid 10. 00 

In  accordance  with  the  requirements  of  the  imperial  law  of  May  22,  1881,  the  charges  are  lower  on  through 
German  coastwise  traffic.  On  German  coastwise  vessels  not  exceeding  50  net  tons  in  size,  the  tolls  are  0.40 
mark  per  net  ton,  with  a  minimum  of  6  marks  per  vessel. 

For  vessels  employed  in  local  traffic  along  the  canal,  or  between  a  point  on  the  canal  and  a  port  on  the  Elbe 
or  the  Baltic,  the  tolls  per  net  vessel  ton  are: 

Marks. 

(a)  For  passing  1  of  the  terminal  locks 0.  20 

(6)  For  each  section  of  5  kilometers  or  fraction  thereof 01 

Minimum  after  passing  1  terminal  lock 4. 00 

Minimum  otherwise 1-  00 

Vessels  not  exceeding  50  tons  net  register  engaged  in  the  local  coastwise  traffic  are  required  to  pay  for  each 
ton  net  register:  ^ 

Marks. 

(a)  For  passing  1  of  the  terminal  locks 0. 10 

(6)  For  each  section  of  5  kilometers  or  fraction  thereof 01 

Minimum  after  passing  1  terminal  lock 3. 00 

Minimum  otherwise 1-  00 

There  are,  also,  various  other  exceptions  to  the  general  local  toll  schedule.  Vessels  with  clearance  papers 
from  any  of  the  water  routes  crossed  by  the  canal  in  the  Burg-Kudensee  Valley  pay  0.10  mark  per  net  ton  for 
the  section,  including  23  kilometers  from  the  Elbe,  with  a  minimum  charge  of  1  mark.  Small  open  rowboats  or 
sailing  boats  may  use  the  canal  free  of  charge,  but  for  passing  one  terminal  lock  they  must  pay  a  toll  of  1  mark. 

'  For  the  complete  schedule  of  charges  consult  Appendices  IV  and  V  of  this  volume. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Ill 


If  a  vessel  on  the  way  tlirough  the  canal  makes  stops  at  points  along  the  canal  for  less  than  24  hours  at  a  time, 
the  sum  of  the  charges  for  the  local  trips  so  made  shall  be  equal  to  the  charge  for  one  through  trip  with  cargo. 

Vessels  empty  or  in  ballast  pay  the  above-mentioned  through  or  local  tolls  less  20  per  cent,  regardless  of  the 
minimum  charges  specified  in  the  regular  tariif  s.  Dredges  pay  0.60  mark  for  each  gross  register  ton  for  a  through 
passage;  if  moved  in  the  local  traffic,  dredges  pay  the  regular  tolls  applicable  to  vessels  engaged  in  local  traffic. 

All  craft  are  obliged  to  pay  tolls  10  per  cent  higher  than  those  named  in  the  foregoing  schedules  during  the 
winter  months  from  October  to  March,  inclusive. 

II.  Towage  charges. — The  second  source  of  revenue  is  the  charge  for  towing  unrigged  craft,  sailing  vessels 
(except  small  vessels  of  less  than  35  tons  going  to  or  coming  from  stations  on  the  canal  or  communicating  water 
routes),  and  such  steamers  as  require  the  service  of  tugs.  Ordinarily,  steamers  pass  through  under  their  own 
steam,  but  the  canal  oflJcials  may  use  their  discretion  in  ordering  a  steamer  to  take  a  tug.  The  tariff  for  towage 
is  as  follows: 

A.  For  using  regular  tugs  of  the  canal  administration. 


Marks  per  net  ton. 


For  each 
ton  above 
200  tons  net. 


1.  Vessels  in  the  through  traffic: 

(a)  With  cargo 

(6)  Empty  or  in  ballast 

(c)  Coastwise  up  to  50  net  tons,  inclusive 

2.  Vessels  in  the  local  tralBc,  for  every  5  kilometers  or  fraction  thereof: 

(a)  With  cargo 

Minimum 

(6)  Coastwise  traffic  up  to  50  net  tons,  inclusive 

Minimum 

(c)  Vessels  empty  or  In  ballast  bear  rates  named  under  2a  plus  those  under  26  less  20  per  cent. 

Minimum 


B.  For  using  special  tug  of  canal  administration  (except  when  rates  in  Schedule  A  are  higher): 

1.  Towing  through  the  canal —  Marks. 

(a)  Tugboat,  class  A  (400  to  500  indicated  horsepower) 240 

(6)  Tugboat,  class  B  (200  to  300  indicated  horsepower) 180 

(f )  Tugboat,  class  C  (180  indicated  horsepower) 135 

{d)  Tugboat,  class  D  (100  indicated  horsepower) 90 

2.  Towing  through  a  section  of  the  canal,  every  10  kilometers  or  fraction  thereof —  Marks. 

(a)  Tugboat,  class  A 30.  00 

(5)  Tugboat,  class  B 15.00 

(c)  Tugboat,  class  C 12.  50 

(rf)  Tugboat,  class  D 10.  00 

C.  For  towing  at  Brunsbuettelkoog  and  Holtenau,  independently  of  towing  in  the  canal,  the  following  charges  prevail,  unless  the  fore- 
going towage  charges  are  less:  Marks. 

1.  Towing  ser\-ice  up  to  half  hour 5 

2.  Towing  service  up  to  one  hour 10 

3.  Towing  service  for  every  subsequent  hour 5 

D.  If  the  fault  or  the  wish  of  the  master  of  a  vessel  causes  any  delay  of  more  than  two  hours  at  beginning  or  end  of  its  trip,  the  charges 
therefor  are,  for  every  hour  or  fraction  thereof,  according  to  the  charges  of  B  2. 

E.  For  use  of  canal  administration  tugs  for  assistance  in  case  of  accidents,  the  charge  per  hour  or  fraction  thereof  is:  Marks. 

1.  Tugboat,  class  A 12.00 

2.  Tugboat,  class  B 9.  20 

3.  Tugboat,  class  C 6.50 

4.  Tugboat,  class  D 5.  20 


112  PANAilA  CANAL  TRAFFIC  AND  TOLLS. 

III.  Pilotage. — The  canal  administration  decides  whether  or  not  a  vessel  requires  a  special  pilot.  The  only 
vessels  being  definitely  exempt  from  pilotage  are  such  sailing  craft  as  are  not  towed  and  small,  open,  or  half- 
decked  steam  motor  or  rowboats.  All  vessels  subject  to  pilotage  are  required  to  pay  the  authorized  pilotage 
fee  upon  arrival  of  the  pilot  on  board  ship.  A  special  tariff  is  published,  the  fees  varying  with  the  distance  to 
and  from  Brunsbuettelkoog,  Xuebbel,  and  Holtenau,  the  three  pDotage  stations.  In  case  the  master  wishes  the 
pilot  to  remain  on  board  during  a  voluntary'  stop  of  over  two  hours,  he  has  to  pay  a  special  fee  of  1  mark  for 
every  hour  or  fraction  thereof. 

IV.  Various  miscellaneous  canal  charges  are  sources  of  a  small  revenue.  Masters  of  sailing  or  other  towed 
vessels  which  have  not  been  sealed  by  the  revenue  service  for  the  canal  trip,  or  whose  cargo  has  not  been  classed 
as  free  traffic,  are  required  to  pay  to  the  pilot  for  acting  as  revenue  escort  a  fee  of  20  marks  for  a  through 
passage,  and  2  marks  for  every  10  kilometers  or  fraction  thereof  in  the  case  of  vessels  in  the  local  traffic.  In 
case  signals,  etc.,  are  rented  from  the  canal  office  by  vessel  masters,  a  fee  of  from  1  to  6  marks  is  collected. 

V.  Charges  for  auxiliary  sfrf>ices.-^Various  charges  not  directly  connected  with  canal  operation  are  made 
by  the  canal  administration.  For  the  use  of  the  public  loadmg  and  unloading  docks  at  Hochdonn,  Hohenhoern, 
Schafstedt,  Oldcnbuettel,  Luhnau,  Westerroenfeld,  Schestedt,  Koenigsfoerde,  Landwehr,  Levensau,  and  the 
inner  port  of  Holtenau,  harbor  dues  are  collected  according  to  the  following  schedule: 

Pfennigs. 

For  vessels  of  6  to  10  cubic  meters  net  capacity 10 

For  vessels  of  11  to  30  cubic  meters  net  capacity 20 

For  vessels  of  31  to  50  cubic  meters  net  capacity 40 

For  vessels  of  51  to  75  cubic  meters  net  capacity 60 

For  vessels  of  76  to  100  cubic  meters  net  capacity 80 

For  vessels  of  over  100  cubic  meters  net  capacity 100 

In  case  a  vessel,  without  either  discharging  or  loading  cargo,  remains  at  these  harbors  longer  than  one 
week,  a  ship's  demurrage  charge  is  collected  for  each  month  or  fraction  thereof,  as  follows: 

Marks. 

For  vessels  up  to  50  cubic  meters  net  capacity 1-  00 

For  vessels  of  51  to  100  cubic  meters  net  capacity 1-50 

For  vessels  of  over  100  cubic  meters  net  capacity 2. 00 

For  the  u.se  of  the  docks  at  Holtenau,  at  the  east  entrance  of  the  canal,  port  dues  are  collected  as  follows: 


A.  1.  For  vessels  up  to  12  cubic  meters  (inclusive)  net  capacity:  .  per  vessel. 

On  entering - ■ 10 

On  lea\-ing 10 

If  in  ballast,  or  empty,  or  loaded  vdih  certain  exempted  articles Free. 

2.  For  vessels  of  over  12  cubic  meters  and  up  to  170  cubic  meters  (inclusive)  net  capacity: 

Pfennigs  per 

cubic  meter, 

(a)  When  loaded—  net  capacity. 

On  entering 1 

On  clearing 1 

Pfennigs 
per  eacli  2 
cubic  meters, 
(6)  When  in  ballast  or  emptj —  net  capacity. 

On  entering 1 

On  clearing 1 

Pfeimigs 

3.  For  vessels  of  over  170  cubic  meters  net  capacity:  ''mS^'^r," 
(a)  When  loaded—                                                                                                                                                                                 net  capacity- 

On  entering ■* 

On  clearing ^ 

(6)  When  in  ballast  or  empty — 

On  entering - 

On  clearing 

Pfermigs 

per  cubic 

B.  For  lumber,  rafts,  etc.:  m^te''. 

(a)  Of  oak  timber  and  lumber 10 

(6)  Of  other  kinds  of  wood ^ 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  113 

Certain  exceptions  are  made  to  tliis  general  tariff.      The  tariff  is  printed  in  full,  with  exceptions,  in 
Appendix  V  to  this  volume. 

For  the  public  use  of  the  inner  harbor  and  wharves  at  Brunsbuettelkoog,  the  following  charges,  also  subject 
to  certain  exceptions,  as  stated  in  Appendix  V,  are  made: 
A.  Harbor  dues — 


For  empty  or  bal- 
lasted vessels  or 
vessels  loaded 
mth  bulk  car- 
goes, or  with 
other  cargoes  up 
to  2,000  kilo- 
grams,  inclusive. 


II. 

For  vessels 
loaded  with 
other  com- 
modities to 
extent  of 
over  2,000 
kilograms. 


1.  For  all  vessels  in  the  Kiel  Canal  subject  to  dues: 

On  entering,  per  cubic  meter,  net  capacity 

On  leaving,  per  cubic  meter,  net  capacity 

Minimum  for  each  vessel  on  entering  and  clearing . 

2.  For  lumber  rafts: 

Of  oak  timber  and  lumber,  per  cubic  meter 

Of  other  woods 


0.04 
.04 
1.00 


B.  Ship  demurrage — 

1.  Ships  which  pay  harbor  dues,  when  using  the  harbor  longer  than  one  week,  for  the  second  week  and  each  succeeding 

week,  per  cubic  meter  net 

2.  Ships  which  do  not  pay  harbor  dues,  when  voluntarily  remaining  in  port  longer  than  one  day,  for  the  second  and 

each  succeeding  day,  per  cubic  meter  net 

3.  Barges  (coal,  etc.)  remaining  for  some  time,  upon  wish  of  the  consignee,  or  which  are  assigned  to  a  definite 

anchorage  for  a  considerable  time,  shall  pay  such  anchorage  charges  as  the  canal  administration  may  impose. 

C.  Wharfage  dues — 

1.  For  bulk  cargoes  for  each  100  kilograms 

2.  For  all  other  cargoes  than  those  specified  under  1  and  3  to  10,  per  each  100  kilograms 

3.  For  firewood,  per  cord  (cubic  meter) 

4.  For  lumber  and  timber,  per  cubic  meter 

For  a  full  vessel  load,  per  cubic  meter,  net  vessel  capacity 

5.  For  brick  and  roof  tiles,  per  1,000 

6.  For  wagons  of  all  kinds,  per  wagon 

7.  For  horses,  cattle,  and  cows,  per  animal 

8.  For  colts,  calves,  sheep,  goats,  and  hogs,  per  animal 

9.  For  poultry  and  young  pigs 

10.  For  rough  granite,  per  cubic  meter,  net  \-essel  capacity 

Minimum  charge 


Marks. 
0.02 
.02 


.02 

.03 

.045 

.15 

.15 

.06 

.70 

.60 

.30 

.03 

.03 

.10 


Small  amounts  are  realized  from  the  sale  of  gas  by  the  canal  gas  plant,  the  sale  of  mineral  water  by  the 
mineral-water  plant,  and  from  the  operation  of  the  laundry.  Revenue  is  also  derived  from  leases,  rents,  and 
police  fines. 

IV.  Receipts  and  Expenditures. 

Table  V  shows  that  the  total  receipts  from  canal  operation — tolls  and  pilotage,  towage,  and  other  canal 
charges— rose  from  971,992.50  marks  m  the  fiscal  year  1896  to  2,124,211.20  m  1900  and  to  3,559,395  in.  1910,  an 
increase  of  266  per  cent  during  the  entire  period  and  of  67  per  cent  during  the  last  decade.  It  will  be  recalled 
that  the  net  tonnage  using  the  canal  increased  312  per  cent  durmg  the  period  1896  to  1910  and  70.7  per  cent 
during  the  last  decade  closing  with  1910.  The  receipts  fi-om  towage  charges  rose  30  per  cent  during  the 
period  1900  to  1910  and  from  toUs  and  pilotage  70  per  cent,  while  the  receipts  from  miscellaneous  canal  charges 
decreased  52  per  cent. 


114  PANAJ^IA  CANAL  TRAFFIC  AND  TOLLS. 

Table  V KAISER  WILHELM  CANAL— CLASSIFICATION  OF  RECEIPTS  AND  EXPENDITURES  (FISCAL  YEARS). 


1897 


1900 


1901 


1902 


A.   RECEIPTS. 

1.  Canal  tolls 

2.  Towage  dues 


4.  Harbor  dues. 


Marks. 
620,735.09 
43,823.35 

1,616.62 
706.76 


Marks. 
899,424.60 
72,086.90 

481.00 
3,363.43 


Marks. 
1,171,594.50 
89,275.60 


S-6.  Other  receipts  (rents,  leases,  fines, 
sales,  etc.) 


1,895.49 
37,253.27 


Marks. 
1,477,713.30 


3,669.60 
2,954.76 


Marks. 
1,670,878.30 
131,820.00 

4,806.60 
3,324.43 


Marks. 
1,975,834.60 
142,954.10 

5,422.50 
4, 152. 14 


Marks. 
1,970,956.10 
136,374.60 

3,714.40 
4,567.20 


1,300,018.86 


1,634,337.77 


Kcceipts  from  canal  operation  (total 
receipts — harbor  dues  and   "other 


receipts"). 

D.   EXPENDITURES. 

Salaries,  pensions,  etc.,  of  officials 

Wages  of  laborers  (not  employed  on 
works  of  maintenance) 


1,260,870.10 


1,588,680.30 


2,111,045.10 


Taxes,  rates,  per  diem,  traveling  ex- 
penses, sick  and  accident  benefits. . 


Maintenance  of  buildings. 
Costs  of  dredging 


Materials    for    running    the    canal 
machinery  and  gas  plant 


Maintenance  of  tugs 

Materials  for  running  the  tugs  . 


Contingent  ("unforeseen")  expendi- 
tures   


357,758.56 

207,395.13 

64,528.80 

1,514.11 

110,855.12 

281,926.63 

116,356.70 
25,477.69 
78, 763. 84 

3,209.79 


678,000.86 

288,836.33 

128,944.99 
10,506.62 
160,994.50 

398,617.92 

158,140.97 
60,044.42 
96,742.90 

73,963.23 


595,990.77 

331,778.31 

128, 106. 79 
21,797.58 
229,671.53 

614,638.77 

144,944.58 
81,246.02 
130,108.90 


608,876.57 

340,825.71 

140,969.51 
13,231.19 
197,755.96 

354,461.45 

158,941.72 
64,034.89 
172, 733. 22 

14,906.86 


Total  expenditures 

Net  receipts  (+),  deficit  (— ) . 


2,278,283.25 
-978,264.39 


A.  RECEIPTS. 


1.  Canal  tolls 

2.  Towage  dues. 


3.  Rents  for  tarill  signals  and  other 
dues 


4.  Harbor  dues. 


Receipts  from  canal  operation  (total 
receipts— harbor  dues  and  "other 
receipts  ") 


B.  EXPENDITURES. 

Salaries,  pensions,  etc.,  of  officials 

Wapes  of  laborers  (not  employed  on 
works  of  maintenance) 

Taxes,  rates,  per  diem,  traveling  ex- 
penses, sick  and  accident  benefits . . . 

Maintenance  of  buildings 

Costs  of  dredging 

Maintenance  of  locks,  bridges,  and 
other  structures 


1903 


Marks. 
2,267,030.30 
141,769.20 

2,783.50 
4,182.93 


2,481,682.36 


Materials    for    running    the    canal 
machinery  and  gas  plant 


Maintenance  of  tugs 

Materials  for  running  the  tugs 

Contingent  (''unforeseen*')  expendi- 


Total  expenditures 

Net  receipts  (+),  deficit  (— ). 


742,263.11 

370,949.67 

176,524.46 
16,843.00 
249,059.55 


186,390.91 
80,945.47 
246,491.94 


1904 


Marks. 
2,420,798.78 
146,604.90 

3,725.80 
4,092.02 


186,399.97 
21,911.29 
233,250.88 


177,291.25 
76, 145. 78 
194,513.56 


2,448,097.-54 


1905 


Marks. 
2,651,880.50 
149,925.30 

4,051.75 
3,159.01 


818,851.89 

410,336.27 

196,063.74 
19,523.51 
244,071.35 

385, 701. 98 

190,475.04 
96,845.82 
181,262.40 


1906 


Marks. 
2,707,873.10 
150,029.60 

3,378.60 
4,581.55 


203, 472. 54 
19,403.06 
267,453.41 

380,511.74 

207,598.52 
104,509.18 
194, 448. 72 


-1-247,982.33 


641,016.71 

352,965.86 

147,860.55 
20,651.57 
196,607.37 

337,163.36 

158,992.88 
76,917.32 
231,728.75 

4,6.32.96 


684,444.99 

355,830.90 

163,741.12 
29, 183. 15 
198,967.71 

373,233.76 

176,309.45 
91,976.57 
388, 745. 79 

27,295.11 


699,751.52 

354,237.45 

163,122.35 
20,301.57 
174,821.20 

364,729.80 

183,435.40 
83,452.61 
422,220.15 

5,218.86 


1907 


Marks. 
2,937,973.40 
166,160.80 

2,594.20 
4,940.76 


881,676.65 

435, 162. 40 

209,617.77 
16,946.24 
252,044.55 


209,995.51 
114,173.45 
245,723.56 


Marks. 
2,690,894.40 
153,114.30 

2,098.30 
6,662.49 


913,420.23 

483,461.29 

230,093.26 
20, 158. 53 
247,374.29 


215,641.34 
%,601.21 
250,860.58 


2,781,881.89  1      2,808,107.71 


-1-128,965.47 


1909 


Marks. 
2,961,567.00 
183,672.70 

2,515.50 
10,257.54 


1,052,122.18 

475,358.63 

213, 186.  33 
14,893.95 
211,006.74 


216,514.49 
116,202.21 
233,144.72 

16,907.71 


2,880,214.13 


Marks. 
2,080,723.10 
133, 107. 40 

3,409.60 
5,736.11 


2,281,764.27 


730,510.20 
363,504.30 

164,311.81 

20,006.59 
260,039.20 

357,123.51 

193,423.22 
55,817.63 
339,613.85 

23,000.48 


2,507,350.79 
-225,686.52 


1910 


Marks. 
3,370,835.60 
185,991.60 

2,567.90 
12, 7%.  37 


1,067,152.86 

490,488.39 

225,390.16 
15,869.55 
159,651.37 


219,846.65 
105,522.98 
233,584.56 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  115 

The  entire  revenue  of  the  canal  administration  from  all  sources — canal  and  otherwise — increased  from 
1,016,855  marks  in  the  fiscal  year  1896  to  2,174,641  m  1900  and  to  3,684,572  m  1910,  a  gain  of  262  per  cent 
during  the  entire  period  and  of  69  per  cent  during  the  last  decade. 

The  aggregate  revenue  for  the  fiscal  year  1910  included  the  following  items  of  income: 

Marks. 

Canal  tolls  and  pilotage 3_  370, 835.  60 

Towage 185, 991.  50 

Other  canal  receipts 2  567.  90 

Harbor  dues 12  796. 37 

Receipts  from  sales 7  066.  72 

Leases,  rents,  fines,  etc 105,313.  84 

3,  684,  571.  93 

The  expenditures  of  the  canal  increased  from  1,954,793  marks  in  the  fiscal  year  1896  to  2,489,728  in  1900 
and  to  2,963,812  in  1910,  an  increase  of  51.6  per  cent  during  the  period  and  19  per  cent  during  the  last  decade. 
It  was  not  untn  1903  that  the  annual  deficit  was  changed  to  a  profit.  Since  that  date  there  has  been  a  growing 
surplus  of  revenues  over  operatmg  expenses. 

Table  VI  itemizes  the  expenditures  for  the  fiscal  year  1910.  There  were  1,754,306.41  marks  expended  for 
personal  services  and  1,209,505.28  for  materials  and  services  not  personal. 

Table  VI.— KAISER  WILHELM  CANAL— EXPENDITURES  DURING  FISCAL  YEAR  1910. 


Item. 


For  personal  services: 

1.  Salaries  to  statutory  employees; 

At  headquarters 

Construction  department 

Operating  department 

Allowance  for  quarters 

2.  Wages  to  workmen,  and  gratuities  tor  support  ot  workmen  and  their  survivors. 

3.  Costs  of  sick,  invalid,  and  accident  insurance  of  workmen 

4.  Pensions 

5.  Other  expenses 

For  materials  and  services  not  personal: 

1.  Dredging 

2.  Maintenance  of  canal  structures 

3.  Coal  and  other  supplies  used  in  operating  canal  machinery  and  gas  plant 

4.  Maintenance  of  pilot  tugs,  towing  tugs,  lock  boats,  and  service  boats 

5.  Supplies  for  operating  floating  equipment  and  hire  of  outside  towboats 

6.  Other  expenses 


i,  822. 50 
1,013.16 
1,221.13 
i,  944. 78 
1,488.39 
i.  231. 93 
:,121.02 
;,  463. 50 


1,551.37 
1,652.40 
1,846.65 
i,  522. 98 
1,584.56 
1.346.32 


Total  expenses. 
Total  receipts. . 
Net  receipts 


1,209,505.28 

12.963,811.69 

3,684,571.93 

720,760.24 


»  Not  including  61.311.74  marks  expended  as  "nonrecurring"  charges,  for  enlargement  of  the  canal  pilot  house  in  Nuebbel,  for  the  workingmen's  quarters  along 
the  line  of  the  canal,  and  for  damages  to  the  firm  of  Gegan  &  Wiegand,  for  earthwork  in  original  construction  oi  the  canal. 

Expenditures  may  be  reclassified  so  as  to  bring  out  the  total  cost  of  certain  services  and  materials.  The 
cost  of  pilotage  in  1910  was  435.590.22  marks,  ferriage  154,671.44,  telegrams  and  telephones  39,017;05,  lighting 
of  line  92,079.30,  switch  operation  59.321,59,  dockyard  269,121.14,  gas  plant  8,231.59,  emergency  locking 
pontoons  1,707.90,  accident  damages  18,552.63,  care  of  sick  55,742.22,  and  total  supply  of  coal  and  briquets 
849,556.  The  towage  service  is  still  very  expensive,  its  total  cost  in  1910  being  623,604.96  marks,  while  the 
receipts  from  towage  charges  amounted  to  but  185,991.50  marks. 


116  PANMIA  CANAL  TRAFFIC  AND  TOLLS. 

Since  1903  expenses  have  increased  less  rapidly  than  receipts,  and  the  canal  has  been  operated  at  a  small 
profit  amounting,  in  1910,  to  720,760  marks.  After  1914,  when  the  improvements  now  in  progress  have  been 
completed,  traffic  will  no  longer  be  retarded  by  inadequate  canal  dimensions,  and  the  annual  surplus  should 
increase. 

The  net  receipts  are  not  sufficient  to  pay  interest  on  the  investment.  No  efTort  is  made  to  levy  tolls  that 
will  provide  for  interest  charges  and  for  the  amortization  of  the  investment  of  1.56,000,000  marks  ($37,128,000). 
The  Kiel  Canal,  unhke  the  Panama  or  Suez  Canals,  does  not  connect  regions  of  vast  trafiic,  nor  does  it  greatly 
shorten  ocean  routes.  The  sea  routes  between  the  Baltic  Sea  and  the  leading  ports  west  of  the  canal  are  but 
83.8  to  428.8  miles  longer  than  the  routes  via  the  canal.  The  tolls  are  low  because  the  traffic  does  not  warrant 
heavier  charges.     For  the  miUtary  services  of  the  canal  no  charges  are  made. 

The  canal  has  fully  justified  its  construction.  Indeed,  it  has  been  of  such  naval  and  commercial  value  to 
Germany  that  the  Government  is  now  spending  233,000,000  marks  (S55,454,000),  much  more  than  the  amount 
of  the  original  investment,  in  doubling  the  size  and  capacity  of  the  waterway. 

[Note. — For  statute  of  German  Empire  concerning  charges  for  the  use  of  the  Kaiser  Wilhelm  Canal  see  Appendix  III;  for  schedule 
of  tolls  and  other  charges  see  Appendix  IV;  and  for  schedule  of  port  charges  and  demurrage  see  Appendix  V.  For  operating  regulations 
of  the  Kaiser  Wilhelm  Canal  see  Appendix  XX  to  volume  on  Measurement  of  Vessels.] 


CHAPTER   VII. 


THE  MANCHESTER   CANAL:    ITS   HISTORY, 
FINANCES,  AND   TRAFFIC. 


117 


CHAPTER  VII. 


THE  MANCHESTEE  CANAI:  ITS  HISTOEY,  FINANCES,  AND  TEAFFIC. 
1.  Physical  Featl-ees. 

Years  of  agitation  preceded  the  construction  of  the  Manchester  Ship  Canal.  The  project  was  a  large  one, 
and  there  was  active  opposition  by  the  railways  and  by  the  industrial  and  commercial  districts  with  which 
Manchester  competes.  Three  hundred  and  twenty-six  petitions  were  presented  in  Parhament  before  the 
authorizing  act  of  1885  was  obtained. 

Construction  was  begun  in  November,  1887,  at  which  time  it  was  estimated  that  the  total  cost  would  be 
£8,262,936.  The  waterway  was  opened  for  traffic  January  1,  1894,  after  the  expenditure  of  £14,860,000. 
The  total  investment  on  capital  account  up  to  December  31,  1911,  was  £16,838,957,  it  having  been  found 
necessary  to  enlarge  and  deepen  the  canal  and  to  add  docks,  warehouses,  and  other  facihties.  Of  the  total 
original  cost  up  to  1894,  £11,750,000  went  toward  construction  expenses,  £1,330,000  toward  the  purchase  of 
land  and  for  compensation,  and  £1,780,000  for  the  purchase  of  Bridgewater  Canal  property. 

The  canal  is  35^  miles  long  and  extends  from  Eastham,  on  the  south  side  of  the  River  Mersey,  about  6 
miles  from  Liverpool,  to  Manchester.  Its  original  depth  of  26  feet  has  been  increased  to  28  feet.  The  bottom 
width  is  120  feet;  but  at  Weaver  Outfall  the  width  is  ISO  feet,  at  Runcorn  Bend  150  feet,  from  Barton  Aqueduct 
to  Manchester  170  feet,  and  from  Latchford  Locks  to  Partington  Coal  Basin,  for  a  distance  of  about  1  mile, 
90  feet.  The  maximum  dimensions  of  vessels  permitted  to  use  the  canal  are  550-foot  length,  61-foot  beam, 
70-foot  height,  and  27-foot  draft.  A  map  of  the  canal  is  presented  in  Plate  7  in  the  pocket  at  the  end  of 
this  volume. 

To  overcome  the  difference  of  58  feet  6  inches  in  level  between  Eastham  and  Manchester,  there  are  five 
sets  of  locks,  the  dimensions  of  which  are  as  follows: 


SmaU. 

Interme-         t  « 

diate.      j     Large. 

Rise. 

Distance 

from 
Eastham 

Locks. 

Eastham  (tidal  lock) 

Feet. 
150  by  30 

Feet. 
350  by  50 
350  by  45 
350  by  45 
350  by  45 
350  by  45 

Feet. 
600  by  80 
600  by  65 
600  by  65 
600  by  65 
600  by  65 

Ft.  in. 

MiUi. 

14      6 
16 
15 
13 

21 
281 
30i 
333 

The  Manchester  Canal  has  excellent  connections  with  barge  canals  and  with  railroads,  and  Manchester  hag 
been  equipped  with  efficient  port  facihties.  The  Manchester  Dock  Railways,  owned  by  the  canal  company, 
include  SO  miles  of  tracks  on  and  about  the  Manchester  docks  and  a  total  mileage,  at  docks  and  points  along 
the  canal,  of  137  miles.  The  Manchester  docks  are  connected  ^vith  the  London  &  North  Western  Railway, 
the  Lancashire  &  Yorkshire,  the  Great  Northern,  the  Midland,  the  Great  Central,  and  the  Cheshire  Railways. 
The  canal  and  rail  hues  make  connections  at  various  points  between  Manchester  and  Eastham.  The  canal 
company  quotes  shippers  through  freight  rates  from  aboard  the  ship  at  Manchester  to  interior  towns  and  from 
interior  to%vns  to  the  ship  at  Manchester,  the  charges  quoted  including  the  freight  rates  and  all  terminal  and 
transfer  charges. 

34998°— 12 9  .  119 


120  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  Manchester  Canal  Co.  owns  the  Bridgewater  Canal  and  makes  connections  with  13  other  barge  canals — 
the  Leeds  &  Liverpool,  Bolton  &  Bury,  Rochdale,  Ashton,  Huddersfield,  Stockport,  Macclesfield,  Calder  & 
Hebble,  Peak  Forest,  Aire  &  Calder,  Trent  &  Mersey,  Weaver  Navigation,  and  Shropshire  Union  Canal.  See 
Plate  8,  in  pocket. 

Direct  connection  is  made  by  the  Manchester  Canal  vfith  numerous  industrial  establishments  located  on 
or  near  the  waterway.  The  company  ovms  the  Trafford  Park  estate  near  Manchester,  and  from  this  estate, 
1,183  acres  in  extent,  sites  for  industrial  plants  have  been  sold  to  a  large  number  of  firms  whose  factories  are 
served  both  by  the  canal  and  by  rail  lines.     The  total  surplus  estate  of  the  canal  company  includes  2,500  acres. 

The  Manchester  docks  estate  has  an  area  of  406J  acres,  with  a  water  area  of  120  acres,  and  with  quays 
286*  acres  in  area  and  6^  miles  in  length.  Eight  large  docks  have  been  constructed  and  another  planned,  with 
dimensions  as  follows: 


Feet. 

No.  1 V 700  by  120 

No.  2 600  by  150 

No.  3 600  by  150 

No.  4 560  by  150 

No.  5> 980  by  750 

I  Not  yet  constructed. 


Feet. 

No.  6 850  by  225 

No.  7 1,160  by  225 

No.  8 1,340  by  250 

No.  9 2,700  by  250 


Dock  No.  9,  recently  constructed,  has  a  water  depth  of  28  feet,  a  water  area  of  151  acres,  and  sheds,  quays, 
tracks,  etc.,  covering  128*  acres.  Five  transit  sheds,  with  a  total  floor  space  of  22  acres,  are  located  on  the 
south  side  of  this  dock,  and  a  large  grain  elevator  is  to  be  erected  at  the  east  end.  The  docks  at  the  port  of 
Manchester  are  equipped  with  53  hydraulic,  61  steam,  and  93  electric  cranes  capable  of  lifting  from  1  to  10  tons 
each;  with  one  30-ton  steam  crane,  a  pontoon  shears  capable  of  lifting  250- ton  weights,  6  floating  pontoons, 
46  locomotives,  37  transit  sheds,  one  of  which  is  a  cold-storage  shed,  and  13  warehouses  fitted  with  improved 
appliances.  At  Trafford  Park  there  are  four  additional  warehouses.  All  wharves  are  equipped  with  electric 
or  steam  capstans.  There  is  a  large  grain  elevator  of  40,000  tons  storage  capacity,  and  another  of  the  same 
size  is  to  be  constructed.  Two  large  cattle  wharves  are  provided  for  the  coastwise  and  foreign  cattle  trade. 
AU  wharves  have  rail  tracks  and  rail  connections,  so  that  freight  may  be  handled  directly  from  cars  to  steamers 
and  from  vessels  or  sheds  and  warehouses  to  railroad  cars. 

At  various  points  between  Manchester  and  Eastham  the  canal  company  provides  dock  and  wharf  facilities, 
and  there  are  private  facilities  available  at  numerous  places,  as,  for  example,  the  Stuart  Wharf  for  timber, 
cattle,  etc.;  the  wharves  of  the  Manchester  Dry  Docks  Co.  (Ltd.),  of  the  Union  Cold  Storage  Co.  (Ltd.),  and  of 
various  coal  terminals.     Many  firms  have  private  wharves.     See  Plate  9,  in  pocket. 

II.  The  Capital  Invested  in  the  Manchester  Canal. 

The  original  cost  of  the  Manchester  Canal  having  reached  £14,860,000,  instead  of  £8,262,936,  as  had  been 
estimated,  the  difference  between  the  actual  and  estimated  cost  became  so  great  that  the  company  had  much 
trouble  in  financing  the  project.  The  original  capital  was  mainly  subscribed  locally  by  the  business  interests 
of  the  Manchester  district,  and  later  appeals  to  those  interests  failed  to  secure  the  additional  funds  required. 
The  situation  of  the  company  became  so  acute  that  the  corporation  of  Manchester  finally  made  a  loan  of 
£5,000,000  and  acquired  control  of  the  management  of  the  canal  company.  Eleven  of  the  21  directors  of  the 
canal  company  are  appointed  by  the  city  and  10  are  selected  by  the  shareholders. 

The  total  authorized  capital  of  the  company  December  31,  1911,  was  as  follows: 

Ordinary  shares,  £10  each X4, 000, 000 

Perpetual  5  per  cent  preference  sliares,  £10  each 4, 000, 000 

Manchester  Ship  Canal  Corporation,  3^  per  cent  preference  stock  held  by  corporation  of  Manchester 1,  OGl,  230 

Perpetual  3i  per  cent  first  mortgage  debentures 1,  359, 000 

4  per  cent  first  mortgage  debentures  (terminable  1914) 453, 000 

4  per  cent  second  mortgage  debentures  (terminable  1914) 600, 000 

Debenture  stock  under  act  of  1904 2, 000, 000 

New  mortgage  debentures  (held  by  corporation  of  Manchester) 5, 000, 000 

Mortgage  of  surplus  lands 100, 000 

Total £18,573,230 


PANAMA  CANAL  TEAFFIC  AND  TOLLS.  121 

The  Manchester  Ship  Canal  (finance)  act  of  1904  (sec.  12)  provides  that  "all  profits  of  the  company  after 
payment  of  the  dividends  on  corporation  preference  shares  and  corporation  preference  stock  shall,  notwith- 
standing anything  contained  in  any  of  the  recited  acts  or  other  acts  relating  to  the  company,  be  divisable  as 
follows:  Two-thirds  to  the  holders  of  the  preference  shares  issued  in  pursuance  of  the  powers  of  the  acts  of  1885 
and  1887;  one  third  to  the  ordinary  shareholders.  Provided  that  when  the  said  two-thirds  due  to  the  holders 
of  preference  shares  issued  in  pursuance  of  the  powers  of  the  acts  of  1885  and  1887  shall  in  any  year  amount  to 
£200,000  aU  the  remaining  profits  of  that  year  shall  be  payable  to  the  ordinary  shareholders." 

The  net  income  of  the  company  is  applied  to  the  several  accoimts  in  the  following  order:  Interest  on  first 
and  second  debentures,  interest  on  debenture  stock,  interest  on  mortgage  of  surplus  lands,  rent  of  No.  8  shed, 
rent  of  No.  9  dock  and  transit  shed,  and  the  balance  to  the  city  of  Manchester  on  account  of  interest  on  its 
£5,000,000  loan.  Until  recently  the  company's  earnings  have  been  insufficient  to  pay  the  entire  interest  due 
on  the  city's  loan.  The  holders  of  ordinary  and  preference  shares  (common  and  preferred  stock)  have  as  yet 
received  no  dividends  on  their  investment. 

The  total  expenditure  on  capital  account  to  December  31,  1911,  amounted  to  £16,838,957,  or  shghtly  less 
than  $82,000,000,  and  was  distributed  as  follows: 

1.  Construction  of  works  (including  plant  and  equipment) £10, 992, 463 

2.  Bridgewater  canals 1, 268, 826 

3.  Land  (purchase  and  compensation) 1, 504, 060 

4.  Engineering  and  surveying 196,  232 

5.  Interest  on  share  and  loan  capital 1, 170,  734 

6.  Parliamentary  expenses 197, 019 

.7.  General  expenses 448, 393 

8.  Interest  on  debentures  discharged  by  the  issue  of  a  like  amount  of  preference  stock  to  the  corporation  of 

Manchester 1,061,  230 

Total  capital  expenditures 16, 838, 957 

Total  capital  receipts 17, 065, 638 

Balance 226, 681 

As  item  S  in  the  preceding  table  indicates,  the  canal  company  has  not  been  able,  until  recently,  to  pay  all 
the  interest  due  on  the  debentures  held  by  the  city  of  Manchester.  The  interest  deficit  has  been  paid  by  issuing 
preference  stock  to  the  corporation  of  Manchester.  This  preferred  stock  is  entitled  to  3^  per  cent  dividends 
when  the  earnings  warrant.  It  is  to  be  distinguished  from  the  debenture  stock  which  resembles  debenture 
bonds  on  which  interest  is  regularly  paid  after  the  interest  has  been  paid  on  the  first  and  second  mortgage 
debentures. 

III.  Traffic  of  Manchester  Ship  Canal. 

Though  the  traffic  of  the  Manchester  Ship  Canal  has  been  less  than  was  estimated,  there  has  been  a  steady 
increase.  Table  No.  I  shows  that  in  1911,  5,217,812  tons  of  freight  used  the  canal,  as  compared  with  925,659 
tons  in  1894,  the  first  year  of  operation.  The  gain  during  the  decade  1900  to  1910  was  61.3  per  cent,  although 
the  liigh  figure  of  1907,  o%ving  to  the  subsequent  commercial  depression,  had  not  yet  been  reached  in  1910. 
The  increase  during  the  decade  ending  in  1911  was  77.3  per  cent,  more  freight  being  handled  in  that  year  than 
during  any  previous  year  in  the  history  of  the  canal. 

Of  the  total  traffic  in  1911,  4,894,670  tons  consisted  of  sea-borne  traffic,  this  being  an  increase  of  82.3  per 
cent  over  the  year  1901.  The  barge  traffic  of  the  canal  in  1911  totaled  323,142  tons,  and  was  less  than  was 
carried  during  the  later  nineties.  In  view  of  the  connection  of  the  Manchester  Canal  with  as  many  as  14  barge 
canals,  the  barge  traffic  is  surprisingly  small. 

The  total  number  of  vessels  entering  the  canal  in  1911  was  6,409  mth  a  net  register  tonnage  of  2,869,641. 
Since  the  opening  of  the  canal  the  annual  number  of  vessels  entering  has  increased  40.8  per  cent,  and  the  net 
tonnage  298.3  pier  cent.  During  the  last  decade  the  number  of  vessels  entering  increased  27.9  per  cent, 
and  the  net  tonnage  97.2  per  cent.  The  Royal  Commission  on  Canals  and  Waterways  (Vol.  VII,  p.  50)  after 
reviewing  the  traffic  from  1898  to  1905  concludes  that  "these  figures  show  a  rapid  and  satisfactory  progress, 
and  prove  what  can  be  done  by  energy  and  courage,  and  with  a  large  expenditure  of  capital,  in  favorable  cir- 
cumstances, to  create  trade." 


122 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  I.— NUMBER  AND  NET  TONNAGE  OF  VESSELS  (INCLUDING  REPEATED  VOYAGES)  USING  THE  MANCHESTER 
SHIP  CANAL,  AND  TRAFFIC,  SEA  BORNE,  BARGE  AND  TOTAL,  JAN.  1,  1894  TO  JAN.  ],  1912. 


Years. 

Manchester  (exclud- 
ing Runcorn). 

Runcorn. 

Total. 

Sea-borne 
traffic. 

Barge 
traffic. 

Total 
traffic 
carried. 

Vessels. 

Tons. 

Vessels. 

Tons. 

Vessels. 

Tons. 

Cargo,  tons. 

Cargo,  tons. 

Cargo, tons. 

1,315 
1,752 
2,154 
2,212 
2,836 
2,705 
2,900 
2,866 
3,167 
3,077 
3,195 
3,454 
3,497 
3,679 
3,486 
3,517 
3,699 
3,784 

408,364 
589, 159 
787,218 
839,167 
1,028,188 
1,135,074 
1,230,784 
1,214,617 
1,417,155 
1,526,491 
1,506,260 
1,647,774 
1,767,017 
1,942,228 
1,823,294 
1,818,626 
1,918,515 
2,452,647 

3,236 
3,009 
3,002 
2,920 
2,973 
2,477 
2,462 
2,142 
2,383 
2,205 
2,570 
2,588 
2,507 
2,683 
2,872 
2,781 
2,765 
2,625 

311,791 
290,045 
307,619 
300,566 
322,240 
260,627 
261,536 
240,382 
289,834 
275,707 
296, 153 
314,373 
305,182 
312,657 
343,723 
306, 175 
343,301 
416,994 

4,551 
4,761 
5,156 
5,132 
5,809 
5,182 
5,362 
5,008 
5,550 
5,282 
5,765 
6,042 
6,004 
6,362 
6,358 
6,298 
6,464 
6,409 

720,425 
879,204 
1,094,837 
1,13^733 
1,350,428 
1,395,702 
1,492,320 
1,454,999 
1,706,989 
1,802,198 
1,802,413 
1,962,147 
2,072,199 
2,254,885 
2,167,017 
2,124,801 
2.261,816 
2,869,641 

686,158 
1,087,443 
1,509,658 
1,700,479 
2,218,005 
2,429,168 
2,784,843 
2,684,833 
3,137,348 
3,654,636 
3,618,004 
3,993,110 
4,441,241 
4,927,784 
4,317,965 
4,290,765 
4,618,070 
4,894,670 

239,501 
271,432 
316,579 
365,336 
377,580 
348,940 
275,673 
257,560 
280,711 
290,259 
299,574 
260,244 
259,683 
282,975 
264,531 
272,636 
319,561 
323, 142 

925,659 

1,358,875 

1,826,237 

2,065,815 

2,505,585 

2,778,108 

3,060,516 

2,942,393 

3,418,059 

1903 

3,846,895 

1904 

3, 917,  .578 

1905 . .     .                    

4,253,354 

1906..                                  

4,700,924 

5,210,759 

1908                                                      

4; 582, 496 

4,563,401 

1910 

4,937,631 

5,217,812 

The  officials  of  the  canal  company  have,  however,  repeatedly  expressed  dissatisfaction  with  the  growth  of 
traffic  which  so  far  as  facilities  are  concerned  might  have  been  more  rapid.  The  chairman  of  the  board  of 
directors  at  the  general  meeting  of  the  company  on  February  17,  1910,  spoke  as  follows: 

If  more  patriotism  could  somehow  be  infused  into  the  mercantile  and  manufacturing  community  of  this  district  we  should  soon  have 
a  large  expansion  of  traffic.  What  I  mean  with  regard  to  imbuing  the  mercantile  and  manufacturing  community  with  local  patriotism  is 
this:  That  they  should  be  determined  in  every  case  to  back  up  their  own  port.  If  shipowners  were  made  to  believe  that  when  they  take 
the  risk  of  running  lines  of  steamers  to  and  from  Manchester  they  would  have  the  wholehearted  sympathy  and  support  of  the  whole 
mercantile  community  we  should  go  ahead  very  much  faster.  Self-interest  is  the  dominant  factor  in  business,  and  it  is  on  that  ground  that 
I  mainly  appeal  to  the  mercantile  and  manufacturing  community.  It  is  sheer  folly  to  send  their  goods  by  the  rival  routes  merely  because 
they,  for  the  time  being,  in  competition  with  the  Ship  Canal,  come  down  to  the  Manchester  Ship  Canal  cost.  But  I  appeal  also  on  higher 
grounds.  Siu'ely  the  men  of  Manchester  are  not  going  to  incur  the  stigma  of  being  unable  to  put  the  finishing  hand  to  their  great  work. 
They  have  attained  celebrity  all  over  the  world  for  converting  their  inland  town  into  one  of  the  great  seaports  of  the  Kingdom.  Are  they 
going  to  clinch  their  effort  by  showing  the  whole  world  they  are  determined  that  their  own  port,  and  not  rival  ports,  shall  have  every  ton 
of  traffic  they  can  influence?  Manchester  men  are  generally  believed  to  be  too  farseeing  and  thorough  to  do  things  by  halves;  and  the 
eerioas  question  for  our  undertaking  is  "are  they  going  to  live  up  to  their  reputation?" 

The  chairman's  words  point  to  the  chief  traffic  difficulty  of  the  canal.  From  the  very  beginning  it  has  had 
to  compete  with  the  railroads  which  previously  carried  nearly  all  the  freight  to  and  from  the  Manchester  district. 
During  the  promotion  of  the  canal  their  policy  was  to  block  its  construction;  and,  failing  in  this,  their  policy 
has  been  to  cut  their  rates  to  the  basis  of  canal  charges  in  order  to  hold  as  much  of  the  traffic  as  possible  and  to 
compel  the  canal  company  to  operate  as  a  losing  venture  to  its  stockholders.  The  cliief  competition  centers 
about  the  traffic  to  and  from  the  points  arountl  Manchester  not  directly  on  the  canal.  Upon  such  traffic,  the 
canal  charges,  plus  railroad  rates,  plus  handling  charges,  must  compete  with  the  through  railroad  rate  to  Liverpool 
and  the  handling  charges  at  that  terminal.  Shipments  directly  to  and  from  Manchester  are  sometimes  handled 
by  rail  from  and  to  coast  ports,  when  the  railways  are  able  to  provide  shippers  and  consignees  with  sidings  and 
to  offer  them  favorable  through  rates. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  123 

This  competition  with  rail  carriers  indicates,  however,  that  the  commercial  value  of  the  canal  is  not  fully 
measured  by  the  extent  of  its  traffic.  The  favorable  railroad  rates  to  the  coast  ports  are  directly  due  to  the 
ship  canal,  and  much  of  the  industrial  growth  of  the  Manchester  district  is  directly  due  to  the  canal.  The 
Royal  Commission  on  Canals  and  Waterways  (Vol.  VII,  p.  69)  asserts  that  "it  is  true  that  this  undertaking  has  not 
as  yet  proved  sufficiently  reuumerative  to  enable  dividends  to  be  paid  on  ordinary  share  capital.  It  has,  how- 
ever, fulfilled  the  object  of  greatly  increasing  the  commercial  prosperity  of  Manchester.  The  trade  of  Man- 
chester was,  in  the  period  immediately  before  the  construction  of  the  canal,  in  a  depressed  condition.  Works 
were  being  closed,  there  was  no  extension,  and  the  value  of  property  was  going  dowTi.  Since  the  canal  was 
opened  there  has  been  a  large  increase  in  the  net  annual  ratable  value  in  Manchester,  and  there  are  other  signs 
of  increased  wealth  and  prosperity."  The  report  also  states  (p.  164)  "this  benefit  or  indirect  return  has  already 
been  sufficient  abundantly  to  justify  the  great  outlay  on  the  canal.  Moreover,  the  net  revenue  shows  a  steady 
increase,  and  provides  a  direct  return  on  a  growing  proportion  of  the  capital." 

The  inland  city,  Manchester,  has  not  only  maintained  itself  as  an  industrial  center,  but  has  become  the  fourth 
port  in  England.  The  population  of  Manchester,  not  including  the  increase  due  to  the  extension  of  its  area  to 
surrounding  towns,  rose  from  644,873  in  1901  to  714,427  in  1910,  or  10.79  per  cent.  The  population  of  Liverpool 
meanwhile  increased  from  704,134  to  746,566,  or  6.03  per  cent.  The  shipping  of  Manchester  (entrances  and  clear- 
ances) increased  from  3,001,000  tons  in  1900  to  4,564,000  in  1910,  or  52  per  cent;  those  of  Liverpool  grew  from 
18,477,000  to  21,828,000,  or  18.1  per  cent;  thoseof  Hull  from  6,732,000  to  9,885,000,  or 46.8  per  cent,  and  those 
of  London  from  30,500,000  to  36,030,000,  18.1  per  cent.  The  shipping  using  the  port  of  Manchester  consists 
mainly  of  freight  vessels,  as  the  large  ocean-going  passenger  ships  dock  at  coast  ports.  Nevertheless  the  increase 
during  the  decade  1900-1910,  of  65.8  per  cent  in  the  seaborne  traffic  of  the  Manchester  Ship  Canal  and  of  55.8 
per  cent  in  the  net  tonnage  of  vessels  annually  entering  and  clearing  the  port  of  Manchester  through  the  canal, 
does  not  compare  unfavorably  with  the  gain  in  the  shipping  at  the  other  great  ports  of  Great  Britain.  It  will  be 
recalled  that  the  traffic  of  the  Suez  Canal  during  that  decade  increased  70.2  per  cent.  It  is  significant  that 
during  the  decade  ending  in  1911  the  net  tonnage  of  shipping  using  the  Suez  Canal  increased  69.3  per  cent,  while 
during  the  same  period  the  total  freight  traffic  of  the  Manchester  Canal  increased  77.3  per  cent,  and  its  seaborne 
traffic  made  a  gain  of  82.3  per  cent. 

IV.  Manchester  Canal  Tolls  and  Other  Charges. 

The  receipts  of  the  Manchester  Canal  Co.  are  derived  from  several  sources : 

1.  From  ship  dues. — AH  vessels  using  the  canal  are  required  to  pay  "ship  dues."  These  charges  are  on 
the  net  register  tonnage  of  the  vessels  and  upon  any  space  occupied  by  tleck  cargo  as  defined  in  the  merchant 
shipping  acts  of  Great  Britain.  The  "dues"  payable  by  vessels  vary',  first,  according  to  the  section  of  the  world 
to  or  from  which  the  ship  using  the  canal  is  bound;  and,  second,  according  to  the  section  of  the  canal  in  which 
the  vessels  load  or  discharge  cargo.  Vessels  bound  to  and  from  distant  points  are  obliged  to  pay  higher  dues 
than  those  entering  and  clearing  the  canal  ports  from  or  to  near-by  countries.  The  canal  is  divided  into  tliree 
sections,  section  A  including  the  canal  below  Runcorn  Swing  Bridge,  section  B  the  canal  as  far  as  Latchford 
Locks,  and  section  C  the  canal  as  far  as  the  Manchester  Docks.  Vessels  passing  through  the  entire  length  of  the 
canal  to  and  from  Manchester  are  charged  lower  dues  than  are  imposed  on  ships  that  load  or  discharge  at  ports 
in  sections  A  or  B,  the  schedule  of  charges  being  intended  to  encourage  the  trade  of  Manchester  and  the  utiliza- 
tion of  the  extensive  dock  and  warehouse  facilities  there  provided. 


124 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


The  schedule  of  "ship  dues"  is  as  follows: 

Schedule  of  ship  dues  per  net  register  ton,  payable  on  vessels  using  the  Manchester  Ship  Canal. 


Upon  vessels  trading  between— 

Eastham  or  any 
of  the  other 
River  Mersey 
Estuary  Locks 
and  Ruucom 
Swing  Bridge. 

Eastham  or  any 
of  the  other 
River  Mersey 
Estuary  Locks 
and  places  be- 
yond Runcorn 
Swing  Bridge 
up  to  the 
entrance  to 
Latch  ford  Locks. 

Eastham  or  any 
Qf  the  other 
River  Mersey 
Estuary  Loc  :s 
and  Latchford 
Locks  (includ- 
ing locks)  and 
places  above 
up  to  Man- 
chester Docks. 

Period  a  ves- 
sel may  re- 
canal,  after 
which  rent 
will  be 
charged. 

Section  A. 

Section  B. 

Section  C. 

Between  St.  David's  Head  and  the  Mull  of  Galloway,  including  the  Isle  ol  Man  and  the  island  of 

s.  d. 
0    2 

0    4 

0    5 

0  9 

1  0 

1    3 

s.  d. 
0    2 

0    3 

0    4 

0    7 

0    9 

0    10 

.■!.  d. 
0    2 

0    2 

0    2 

0    4 

0    6 

0    7{ 

Days. 

Between  the  Mull  of  Oalloway  and  Duncan's  Bay  ITead,  including  the  Orkney  Isles  and  all  the 
Islands  on  the  western  coast  of  Scotland:  and  between  St.  David's  Head  and  the  Land's  l':nd, 
including  the  SciUy  Islands  and  the  east  coast  of  Ireland  from  Cape  Clear  to  MallinR  Head 

All  parte  of  the  east  and  southern  coasts  of  Great  Britain  between  Duncan's  Bay  Head  and  the 
Land's  End,  includins;  the  islands  of  Shetland;  and  all  parts  of  the  west  coast  of  Ireland  from 

14 
14 

All  parts  of  Europe  to  the  northward  of  Cape  Finisterre,  and  to  the  westward  of  the  North  Cape, 
and  without  the  Cattegat  and  Baltic  Sea,  and  including  the  islands  of  Guernsey,  Jersey,  Aldemcy, 

28 

All  parts  within  the  Caltegat  and  Baltic,  including  the  whole  of  Sweden,  the  White  Sea,  and  all 
parts  to  the  eastward  of  the  North  Cape;  all  parts  in  Europe  to  the  southward  of  Cape  Finisterre 
without  the  Mediterranean,  Greenland,  Davis  Straits,  Canaries,  Western  Islands,  Madeira,  and 

28 

All  parts  of  the  east  coast  of  North  America,  Newfoundland,  the  West  Indies,  the  east  coast  of  Sonth 
America  to  the  northward  of  Rio  La  Plata,  inclusive;  all  parts  of  the  west  coast  of  Africa,  and 
islands  to  the  northward  of  the  Cape  of  Good  Hope,  and  all  parts  within  the  Mediterranean,  includ- 
ing Giliraltar,  the  Adriatic,  the  Black  Sea  and  Archipelaizo,  the  islands  of  St.  Helena,  Ascension, 
and  the  Cape  de  Verde  Islands;  and  all  parts  in  South  America  to  the  southward  ol  the  Rio  La 
Plata;  in  the  Pacific  Ocean;  and  in  Africa  and  Asia  to  the  eastward  of  the  Cape  of  Good  Hope  . . , . 

56 

Vessels  loading  and  dischai^ing  cargoes  consisting  exclusively  of  certain  kinds  of  commodities  are  charged 
"differential  ship  dues,"  equal  to  one  half  the  regular  rates.  Likewise,  vessels  entering  in  ballast  and  loading 
certain  specified  commodities,  or  entering  with  certain  articles  and  leaving  in  ballast,  are  charged  the  differential 
ship  dues.  Small  steamers,  yachts,  launches,  and  all  noncargo-carrying  craft  are  charged  "lockage  tolls"  in  lieu 
of  ship  dues  at  the  rate  of  5s.  per  lock  each  way  and  a  minimum  lockage  charge  of  £1  Is.  Vessels  remaining  in 
the  canal  longer  than  the  maximum  free  time  allowed  are  required  to  pay  1  penny  per  net  ton  per  week,  and 
double  this  in  case  they  remain  longer  than  six  months.  The  complete  Schedule  of  Ship  Dues,  together  with  the 
rules  explaining  them,  is  reproduced  in  Appendix  VI. 

2.  Towage  charges. — In  case  towage  is  necessary  the  company  furnishes  tugs  upon  request,  the  charges 
for  towage  being  according  to  the  following  schedule: 

Towage  charges  per  tug  and  conditions  for  use  of  the  Manchester  Canal  Co.'s  tugs  assisting  steamers  and  towing  sail  vessels  within  the  ship  canal 

For  steamers:  £ 

1.  From  Eastham  locks  or  any  point  in  section  A  or  B  direct  to  any  point  in  section  C,  or  vice  versa 7 

Note. — Steamers  stopping  at  Partington  to  take  on  coal  on  returning  from  Manchester  to  Eastham  locks  will  not  be  con- 
sidered as  breaking  the  direct  journey. 

2.  From  Eastham  locks  direct  to  any  point  in  section  A  or  B,  or  vice  versa;  also  from  one  point  to  another  in  these  sections.  .1 

3.  From  Manchester  docks  direct  to  any  point  in  section  C,  or  ■vice  versa;  also  from  one  point  to  another  in  this  section ) 

4.  Waiting  at  Eastham  locks,  per  tide 2 


a. 

d 

10 

0 

10 

0 

0 

0 

10    0 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  125 

Towage  cluxrges  per  tug  and  conditions  for  use  of  the  Manchester  Canal  Co.'s  tugs  assisting  steamers,  etc. — -Contimied. 

EXCEPTIONS. 

For  steamers:  £      s.    a. 

5.  From  Manchester  docks  direct  to  any  point  below  Mode  Wheel  locks  and  above  Barton  Aqueduct,  or  vice  versa 2    10    0 

6.  From  one  point  direct  to  another  between  Mode  ^Tieel  locks  and  Barton  Aqueduct ) 

7.  From  one  point  direct  to  another  in  Manchester  docks I  2      0    0 

8.  From  one  point  direct  to  another  within  the  canal  at  Ellesmere  Port,  or  at  Runcorn | 

9.  From  Eastham  locks  to  Dolphins  within  the  canal  at  Eastham,  or  vice  versa 

10.  From  one  tip  to  another  at  Partington  coal  basin 

Note. — As  regards  services  Nos.  6,  7,  8,  9,  and  10,  when  tugs  are  occupied  for  more  than  one  hour,  an  additional  charge 
of  10s.  per  hour  or  part  of  an  hour  per  tug  will  be  made,  the  service  to  be  calculated  from  the  time  the  tug  is  in 
attendance,  as  ordered,  until  the  time  the  ser\'ice  is  finished. 
For  sailing  vessels: 

From  Eastham  locks  direct  to  any  point  in  section  A,  B,  or  C  in  the  canal,  or  vice  versa,  or  when  proceeding  from  one 
point  direct  to  another  in  the  canal,  or  in  the  Manchester  docks: 
If  light,  2d.  per  net  registered  ton. 

If  loaded,  3d.  per  ton  upon  the  weight  of  the  cargo,  with  a  minimum  as  when  light. 
These  rates  will  operate  until  the  higher  scale  under  the  preceding  table  for  steamers  is  reached  by  the  charges  payable 
on  the  tonnage  of  the  vessel,  if  light,  or  on  the  weight  of  cargo  on  board,  if  loaded,  when  the  charges  as  per  the  said 
table  will  apply. 

Detention  of  tugs  attending  steamers  and  sailing  vessels. 

Per  hour  or  part  of  an  hour,  lOs.  per  tug. 

Note. — If  tug  assistance  or  towage  services  other  than  those  named  above  are  required,  the  charges  will  be  by  special  arrangement. 

3.  Tolls  on  passengers. — The  passenger  traffic  on  the  Manchester  Canal  is  very  Ught,  because  Manchester 
is  an  inland  port;  but  tolls  are  collected  on  all  passengers  according  to  the  following  schedule: 

Manchester  Canal  tolls  on  passengers. 

When  carried  between  Manchester  docks  and  Eastham,  Is.  each  single  journey. 
'UTien  carried  between  Latchford  locks  and  Eastham,  6d.  each  single  journey. 
When  carried  between  places  not  stated  above,  Jd.  per  mile  per  passenger. 
Maximum  charge  (single  journey).  Is.  per  passenger. 
Minimum  charge  (single  journey),  Id.  per  passenger. 

4.  Pilotage  within  the  canal  is  not  compulsory;  but  when  desired,  the  company,  being  the  official  pilotage 
authority  for  the  canal,  furnishes  licensed  pilots  at  the  following  rates  of  charges: 

Manchester  Canal  pilotage  charges. 

£  3.  d. 

Vessels  up  to  300  tons,  net  register 0  10  0 

Vessels  over  300  tons  and  up  to  600,  net  register 1      0  0 

Vessels  over  600  tons  and  up  to  1,200,  net  register 1  10  0 

Vessels  over  l,200tons,  net  register 2      0  0 

And  in  addition  thereto  a  sum  at  the  rate  of  Is.  per  mile,  or  portion  of  a  mile,  for  the  distance  navigated  when  loaded,  and  6d.  per 
mile,  or  portion  of  a  mile,  when  in  ballast. 

Vessels  moving  from  one  point  to  another  on  the  canal  mthout  leaving  or  entering  the  waterway  pay  one- 
half  of  the  above  pilotage  charges  and  the  full  mileage  rate  of  Is.  per  mile.  Additional  pilotage  charges  are 
collected  for  extra  service  or  for  the  extra  time  pilots  may  be  held  by  the  detention  of  vessels. 

5.  Loading  and  unloading  charges. — The  canal  company  has  the  exclusive  right  to  supply  the  labor  required 
for  loading  and  discharging  vessels;  but  arrangements  may  be  made  by  the  master  of  the  vessel  with  the  canal 
company  to  allow  the  vessel's  crew  to  load  and  discharge  cargo  under  the  regulations  prescribed  by  the  canal 
company.  If  the  canal  company  supplies  the  labor,  it  is  entitled  to  charge  for  such  services  "  the  actual  cost 
of  labor,  a  proportionate  cost  of  the  wages  of  foremen,  of  office  expenses  and  material,  and  in  addition  a  sum 
of  10  per  cent  on  such  amounts,  and  also  a  premium  to  cover  liabilities  for  accidents  and  losses  which  until 
further  notice  will  be  after  the  rate  of  5  per  cent."  If  the  work  is  performed  by  the  company  at  cost  plus  10 
per  cent,  the  vessel  owner  must  reimburse  the  company  for  any  damages  payable  for  accident;  if  the  work  is 
done  for  cost  plus  15  per  cent,  the  company  assumes  all  risks  that  may  be  incurred  under  the  workmen's 
compensation  act. 


126 


PANAMA  CANAL  TRAFFIC  AND  TOLLS, 


For  the  convenience  of  vessel  owners  fixed  schedules  of  loading  and  unloading  charges  are  quoted  by  the 
company.     General  commodities  are  grouped  into  seven  classes  with  charges  as  follows: 

Manchester  Canal  rates  for  loading  and  discharging  in  ordinary  working  hours. 


Class  of  traffic. 

At  per  ton  actual  gross 
weight  of  2,240  pounds. 

Dis- 
charging. 

Loading 
and  trim- 
ming or 
stowing. 

s. 
0 
0 

0 
1 

1 
1 

1 
1 
1 
(') 

d. 
7i 

8 

9 
0 

0 
3 

3 
6 
0 

s.  i. 
0    U 

0    11 

Class  No.  3: 

1      0 

1      3 

Class  No.  4: 

1     3 

1      6 

Class  No.  5: 

1      6 

1      9 

1      6 

(') 

'  By  arrangement. 

There  are  special  schedules  of  loading  and  unloading  charges  for  coal,  lumber  and  wood  products,  grain, 
pig  iron,  salt,  and  pitch.  Additional  charges  are  also  made  for  overtime,  and  for  the  issue  of  coal  weight  certifi- 
cates, for  the  use  of  hfts  and  cranes,  and  for  whatever  extra  services  may  be  performed. 

6.  Quayporter  age  charges. — The  canal  company  has  exclusive  control  of  thehandling  of  freight  on  the  wharves, 
and  it  publishes  a  fixed  schedule  of  "quay  porterage  charges"  payable  by  merchants.  Appendix  VI  to  this 
volume,  which  contains  the  entire  "Schedule  of  rates  of  toll  and  wharfage  payable  by  merchants,"  gives  in 
detail  the  wharfage  regulations  and  the  porterage  charges  applicable  to  the  various  commodities  hancUed  on 
tlie  wharves.  January  1,  1912,  because  of  increased  labor  costs,  all  the  porterage  charges  were  increased  10 
per  cent.  No  porterage  charges  are  collected  when  freight  is  discharged  from  or  to  a  vessel  directly  to  or  from 
freight  cars,  trucks,  or  barges.  Such  direct  handling  of  freight  is  encouraged,  but  is  not  guaranteed  by  the 
company. 

7.  Tolls  on  cargo. — In  addition  to  the  ship  dues,  etc.,  levied  on  the  vessel,  the  Manchester  Ship  Canal  Co. 
charges  tolls  on  the  cargo  payable  by  the  consignees  and  shippers.  These  tolls  upon  commodities  yield  most  of 
the  company's  revenues,  the  "ship  dues"  being  made  hght  to  induce  vessels  to  come  to  Manchester.  The 
tolls  upon  cargo  shipped  or  received  at  points  along  the  Manchester  Canal  are  fixed  with  reference  to  two  con- 
ditions: (I)  The  canal,  as  has  been  explained,  is  divided  into  three  sections,  and  the  toUs  on  cargo  are  chfferent 
for  each  of  these  sections.  (2)  Different  commodities  are  charged  different  tolls.  The  canal  company  publishes 
a  schedule  of  toUs  on  live  stock,  one  for  minerals  and  merchandise,  and  another  applicable  to  minerals  and 
merchandise  not  provided  for  in  the  previous  schedule.  The  rates  in  the  last  of  these  schedules  are  based  on 
the  board  of  trade  classification  of  minerals  and  merchandise  and  upon  the  general  railway  freight  classification, 
the  tolls  varying  according  to  the  class  of  freight  and  the  section  of  the  canal  in  which  the  goods  are  loaded  or 
discharged. 


PANMIA  CANAL  TRAFFIC  AND  TOLLS.  127 

General  schedule  (ver  ton)  of  Manchester  Canal  tolls  applicable  to  minerals  and  merchandise  not  provided  for  in  other  schedules. 


Between  Eastham  and— 

Description  of  merchandise. 

Runcom. 

Latchford. 

Manchester 

A. 

B. 

C. 

Class  A                                                    .                        

s.  d. 

0  6 

1  0 

1  6 

2  0 

2  6 

3  0 

3  6 

4  0 

5.  d. 

0  9 

1  6 

2  3 

3  0 

3  9 

4  6 

5  3 

6  0 

s.  d. 
1    0 

2    0 

3    0 

4    0 

5    0 

6    0 

7    0 

8    0 

The  tolls  on  live  stock  and  on  specified  minerals  and  other  commochties  a/e  stated  in  Appendix  \1. 

8.  Miscellaneous  charges. — There  are  various  miscellaneous  sources  from  which  the  canal  company  obtains 
revenue.  A  "  transshipment  charge  "  is  collected  when  goods  are  transshipped  from  one  vessel  to  another  in  com- 
pany cars  or  barges.  Wlien  imported  goods  are  warehoused  or  yarded  by  the  company  at  the  docks,  a  "ware- 
housing charge"  is  collected  in  addition  to  the  quay  porterage  charge;  but  if  the  company  allows  goods  to 
remain  where  landed  on  the  quay,  the  warehousing  rate  is  substituted  for  the  quay  porterage  rate.  There 
is  a  special  schedule  for  the  storage  of  imported  goods  in  the  bonded  warehouse,  and  another  for  the  storage  of 
dutiable  imported  goods  in  the  "customs  transit  depot,"  wliile  such  goods  remain  at  the  docks.  If  the  company 
is  required  to  perform  the  service  of  transportation,  it  collects  a  "haulage  charge"  for  use  of  its  cars  and  dock 
railways,  and  for  the  haulage  of  the  cars.  If  such  cars  are  detained  longer  than  24  hours  after  arrival  either  in 
loading  or  unloading  a  "demurrage  charge"  is  collected.  Goods  for  export  may  be  left  at  the  dock  at  the 
owner's  risk  for  one  month  free  of  charge,  after  which  the  company  may  store  them  and  coUect  for  the  extra 
services  performed,  as  well  as  for  storage  in  the  warehouses.' 

Certain  capital  receipts  are  also  secured  from  the  sale  of  land  and  plants;  about  £2,200  is  annually  obtained 
for  supplying  water  to  vessels;  and  small  amounts  from  renting  lights  to  shipowners,  who  do  not  themselves 
provide  lights  and  attendance. 

V.  Receipts  and  Expenses  of  the  Manchester  Canal  Co. 

The  total  gross  receipts  of  the  Manchester  Canal,  not  including  the  income  of  the  Bridgewater  canals,  as 
shown  in  Table  III,  have  increased  from  £97,901  in  1894  to  £580,841  m  1911.  The  mcrease  during  the  decade 
1901  to  1911  was  87.6  per  cent,  being  in  excess  of  the  rate  of  growth  in  the  volume  of  sea-borne  traffic. 

Table  III.— REVENUES  AND  EXPENSES  OF  THE  MANCHESTER  SHIP  CANAL  (SHIP  CANAL  DEPARTMENT),  1894-1911. 


Years. 

Gross  re- 
ceipts. 

Operat- 
ing ex- 
penses. 

Net 
revenue. 

Years. 

Gross  re- 
ceipts. 

Operat-        j^gj 

™?ii'     revenue, 
penses. 

£97,901 
137.474 
182,330 
204,664 
236,225 
264,775 
290,830 
309,517 
358,491 

£78,880 
115.329 
182,266 
186,550 
177,727 
191,164 
207,079 
207,455 
217,537 

£19,022 
22,145 
64 
18,114 
58,498 
73,611 
83,751 
102,062 
140,954 

1903 

£397,020    £230.848 

£166,178 

1904 

418,043 
449,436 
498,837 
535,585 
506,975 
534,059 
555,735 
580,841 

240,295 
246,746 
264,185 
275,814 
264,842 
267,384 
276,749 
305,977 

177,748 

1905 

202,690 

1906 

234,652 

1907 

259,771 

1908 

242,133 

1900 

266,675 

1910 

278,986 

1911 

274,864 

(')  For  warehousing,  transshipment,  customs  transit  depot,  and  other  schedules  see  Appendix  VI. 


128 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  III  also  states  the  total  working  expenses  of  the  ship  canal.  From  £78,880  in  1894,  they  mcreased 
to  £305,977  in  191 1 ,  or  287  per  cent ;  and  during  the  last  decade  they  have  risen  47.4  per  cent.  The  net  revenue, 
or  difference  between  gross  receipts  and  working  costs,  increased  from  £19,022  in  1894  to  £274,864  in  1911,  the 
gain  being  169  per  cent  for  the  last  decade.  The  working  costs  of  the  canal  have,  on  the  whole,  increased  at  a 
less  rapid  rate  than  have  the  gross  receipts,  and  the  net  revenue  available  for  interest  and  dividends  has  gradu- 
ally risen.  The  operating  expenses  in  1911  were  £29,227  in  excess  of  what  they  were  in  1910,  because  of  the 
prolonged  coal  strike  in  Yorkshire,  and  the  net  revenue  of  the  company  was  £4,122  less  in  1911  than  in  the 
previous  year. 

Table  rV  contains  the  gross  income  account  for  the  calendar  year  1911  of  the  ship  canal  and  the  Bridge- 
water  Canals,  separately  stated;  and  states  the  relative  amounts  received  from  the  various  sources  of  revenue. 
On  the  ship  canal  but  £40,780  was  collected  from  the  ship  dues,  as  compared  with  £409,589  from  tolls  and  wharf- 
age on  merchandise,  £61,053  on  minerals   and  £1,636  on  live  stock. 

Table  IV.— GROSS  INCOME  ACCOUNT  OF  MANCHESTER  CANAL  CO.,  1911. 


SHIP  CANAL. 

To  maintenance 

TrafBe  expenses 

General  charges 


Working  of  locks,sIuices,swing  bridges, 
ferries,  etc 


Working  of  dock  labor,  railways,  and 
foreign  animal  wharf 


Parliamentary  expenses 

Compensation  (accident  and  losses). 

Rates  and  taxes 

Rents 


Balance  carried  down  . 


BRIDGEWATER  CANALS. 

To  maintenance 

TrafHc  expenses 

General  charges 

Law  charges 

Rates  and  taxes 

Rents 

Balance  carried  dowm. . . 


104,356  1  10 
99,904  13  10 
28,  MS  15    8 

22,720  13  9 
1,479  11  8 

4,718  4  4 

135  16  4 

6,973    1  11 

16,537  11  5 

18,904  11  4 


3     0 


580.841    7  6 

11,812    4  3 

209,354    5  3 

8,308  10  11 

365  17  1 

8,344  18  1 

14,575    5  1 

252,761    0  8 

24,373  19  0 


SHIP  CANAL. 

'  tolls  and  wharfage: 

Merchandise 

Minerals 

Live  stock 

Passengers 

Ship  dues,  etc 

Water  supplied  to  ships. 
Rents 


£  5.   d. 

409,589  2    9 

61,053  er   8 

1,636  0  11 

463  3    6 

40,780  4  11 


2,244  11     0 
44,658    2  10 


Balance  brought  down  (ship  canal 
account) 


BRIDGEWATEE  CANALS. 

By  freight  and  haulage 

Tolls,  dockage,  etc 


Porterage,    cartage,    wharfage,    and 
sundiy  receipts 


209,271     0    4 
56,424    2    6 

29,909    4    8 


513,521  18    9 


580,841    7    6 


295,604    7    6 
28,737    4    6 


PANAMA  CANAL  TKAFFIC  AND  TOLLS. 


129 


The  company's  heaviest  items  of  expense  are  for  maintenance  and  traffic.     Table  V  divides  the  maintenance 
costs  into  their  four  leading  accounts. 

Table  V.— MANCHESTER  CANAL,  EXPENSES  FOB  MAINTENANCE  OF  WAY,  WORKS,  ETC.  (SHIP  CANAL),  1911. 


Salaries,  office  expenses,  and  superintendence 

Dredging 

Maintenance  and  renewal  of  canal  and  railways 

Repairs  of  hydraulic  and  electric  lighting,  installations,  locks,  roads,  bridges,  and  works 

Total 


£ 

». 

<f. 

6,791 

2 

4 

45,245 

8 

1 

22,701  13 

1 

29,617 

18 

4 

104,356 

1  10. 

Table  VI  contains  an  itemized  statement  of  the  "traffic  expenses"  of  the  ship  canal.  This  account  does 
not  include  the  same  items  as  does  the  similarly  designated  account  in  the  books  of  American  railways;  for 
it  includes  not  only  the  expenses  of  developing  traffic,  but  also  many  of  the  chief  operating  expenses.  It  does 
not,  however,  contain  the  cost  of  working  locks,  sluices,  swing  bridges,  and  ferries. 

Table  VI.— MANCHESTER  CANAL,  TRAFFIC  EXPENSES  (SHIP  CANAL),  1911. 


Salaries  of  general  superintendent  and  staff  and  wages 

Commission,  agencies,  etc 

Printing  and  stationery 

Upper  Mersey  dues 

Working  of  tugs,  wages,  stores,  repairs  and  renewals,  and  hire 

Working  of  steam  launches — wages,  stores,  repairs,  etc 

Electric  1  ighting  at  docks 

Gas  and  water 

Postage,  etc 

Traveling  expenses 

Clothing 

Advertising 

Miscellaneous 

Working  of  dock  labor,  railways,  and  foreign  ammal's  wharf:  £        s.  d. 

Receipts 175,220    3    6 

Expenditures 170, 956    0    3 

Total '. 


£      s.  d. 

51, 517  10  11 

11,749  12    0 

3,327    5    7 

476    9    6 

22,778    0    4 

228  18    9 

4,365     7    0 

3,335    2  11 

1,026     7    3 

899  11    2 

363  14    3 

1,566    8    2 

-  2, 534    9    3 


104, 168  17    1 


Other  important  sources  of  expenditure,  as  shown  in  Table  IV,  are  general  charges,  taxes,  and  rents. 
General  charges  include  directors'  fees,  auditors'  fees,  and  public  accountants'  charges,  salaries  of  secretary 
and  accountant,  land  agent  and  staff  office  expenses,  telephone  rent,  general  traveling  expenses,  and  fire 
insurance. 


130 


PAJSTAJMA  CANAL  TRAFFIC  AND  TOLLS. 


Table  VII,  which  contains  the  net  revenue  account  of  the  company,  shows  in  detail  how  the  net  revenue 
was  disposed  of  during  the  calendar  year  1911 : 

Table  VII.— MANCHESTER  CANAL  CO.,  NET  REVENUE  ACCOUNT  (1911). 
Dr.  Or. 


To  interest  on  first  mortgage  debenturess 

Interest  on  second  mortgage  debentures 

Interest  on  3 J  per  cent  perpetual  debenture  stoclc 

Interest  on  4  per  cent  perpetual  debenture  stocli 

Interest  on  mortgage  of  surplus  lands 

Interest  on  new  mortgage  debentures  (corporation  of  Manchester) 

Kent  of  transit  shed,  Dock  No.  8 

Rent  of  Dock  No.  9  and  transit  sheds 

Balance  to  next  half  year 


£ 

s. 

d. 

65,485 

0 

0 

24,000 

0 

0 

7,000 

0 

0 

14,000 

0 

0 

2,000 

0 

0 

160,000 

0 

0 

6,260  10 

0 

25,000 

0 

0 

949  11 

6 

304,696 

1 

6 

By  balance  from  previous  year's  account 

Balance  brought  from  gross  revenue  account 
Bankers  and  general  interest 


£      t.  d. 

2,107    4    2 

299,238    1    5 

3,349  15  11 


304,695    1    6 


Although  the  company  has  not,  until  recently,  been  able  to  pay  all  the  interest  on  the  debentures  held  by 
the  city  of  Manchester,  its  position  has  gradually  become  stronger.  The  stockholders  of  the  company  have  thus 
far  received  no  dividends  on  their  investment,  but  many  of  them  are  local  business  men  who  have  gained  materially 
by  direct  shipments  tlirough  the  canal  or  by  lower  railroad  rates.  The  railroad  rates  on  imported  goods  from 
Liverpool  to  Manchester  are  now  about  one-third  of  what  they  were  before  the  sliip  canal  was  opened. 

The  Manchester  Ship  Canal  Co.  has  had  tliree  difficulties  to  contend  against:  The  competition  with  rival 
carriers,  the  necessity  of  making  costly  improvements,  and  the  expense  of  keeping  the  channel  clear  of  silt. 

Concerning  the  effect  of  railway  competition  upon  the  canal  charges  and  receipts  the  chairman  of  the  board 
of  directors  of  the  canal  company  is  officially  reported  to  have  stated  at  the  shareholders'  meeting,  February  22, 
1912,  that— 

WTien  powers  were  obtained  to  construct  the  ship  canal  calculations  were  made  showing  that  at  the  prevailing  charges  for  transit 
from  Liverpool  to  Manchester  and  vice  versa  the  canal  could  have  offered  advantages  to  merchants  and  left  a  very  nice  balance  for  the 
company.  It  was  believed  that  the  charges  for  the  district  would  remain  on  that  scale,  but  unfortunately  for  the  shareholders  competi- 
tors would  not  let  their  traffic  go  without  a  struggle.  They  put  their  charges  down  so  that  all  calculations  of  revenue  were  swept  on  one 
Bide.  If  the  Ship  Canal  Co.  had  stood  still  they  would  never  have  got  any  ships;  they  had  to  lower  their  charges  J^lst  as  competitors 
lowered  theirs.  Had  the  shareholders  foreseen  this  keen  competition  they  might  never  have  put  their  monej'  into  the  concern,  but 
then  the  trade  of  the  district,  which  had  gone  up  by  leaps  and  bounds,  would  never  have  made  this  progress. 

Recently  the  canal  company  has  suffered  by  not  being  able,  at  times,  to  secure  from  the  railways  as  many 
cars  as  were  needed  to  handle  its  traffic.  At  the  meeting  of  the  shareholders  just  referred  to,  the  chairman  of 
the  board  of  directors  stated : 

We  do  not  wish  to  add  to  our  stock  of  wagons,  but  I  feel  sure  you  will  agree  with  your  directors  that  if  we  find  the  trade  of  our  port 
is  again  being  seriously  and  perhaps  permanently  injured  by  a  shortage  of  wagons,  steps  must  be  taken  to  protect  the  interests  of  the 
company.     The  position  is  too  serious  to  be  trifled  with. 

Expenditures  for  the  improvement  and  enlargement  of  the  canal  have  been  necessary,  and  will  be  inevitable. 
The  depth  of  the  canal  has  been  increased  from  26  to  28  feet;  the  channel  has  gradually  been  widened  and  addi- 
tional docks,  wharves,  warehouses,  transit  sheds,  railroad  equipment  and  tracks,  loading  and  discharging  appU- 
ances  have  been  constructed.  These  expenditures  have  added  to  the  value  of  the  canal,  but  have  increased  the 
financial  burdens  of  the  company.  Dredging  and  other  maintenance  expenses  have  also  been  necessary.  In 
the  calendar  year  1910,  £94,394  were  spent  on  canal  maintenance,  and  of  tliis  £43,501  were  for  dredging. 

The  future  of  the  Manchester  Canal  is  promising.  Its  traffic  and  revenues  are  steadily  increasing.  The 
shareholders  have  not  yet  received  any  dividends,  but  the  net  amount  available  for  interest  and  dividends  is 
gradually  increasing.  It  is  probable  that  all  the  securities  will  eventually  receive  an  annual  income.  The  Man- 
chester district  has  developed  rapidly  since  the  opening  of  the  canal,  and  many  of  the  shareholders  have  been 
so  assisted  by  the  canal  in  builchng  up  their  business  enterprises  as  fully  to  compensate  them  for  their  subscrip- 
tions to  the  canal  stock. 

Note. — See  Appendix  VI  for  the  schedule  of  ship  dues,  etc.,  payable  by  vessel  owners,  and  Appendix  VII  for  the  schedule  of 
rates  of  toll  and  wharfage,  etc.,  payable  by  merchants.  For  regulations  and  by-laws  of  Manchester  Ship  Canal,  see  Appendix  No.  XXI 
to  the  volume  on  The  Measurement  of  ^'essels. 


CHAPTER   VIII. 


THE  AMSTERDAM  CANAL:    CONSTRUCTION,  COSTS, 

AND  TRAFFIC. 


131 


CHAPTER  VIII. 


THE  AMSTERDAM  CANAL:  CONSTRUCTION,  COSTS,  AND  TRAFFIC. 
I.  Construction  and  Physical  Features. 

Amsterdam  is  an  inland  city  located  on  the  Zuider  Zee.  Formerly,  when  seagoing  vessels  were  small 
and  the  depth  of  the  Zuider  Zee  was  sufficient  to  accommodate  them,  Amsterdam  was  a  natural  seaport;  but 
as  the  "Zee"  gradually  became  shallower  and  the  size  of  the  ocean  vessels  larger,  the  commercial  supremacy  of 
Amsterdam  was  threatened  by  the  competition  of  Rotterdam,  Antwerp,  and  north  German  ports.  Early  in 
the  nineteenth  century  the  agitation  began  for  a  canal  which  would  give  Amsterdam  a  direct  route  to  the  ocean ; 
and  a  corporation  constructed  the  North-HoUand  Canal.  Work  was  begun  in  1818  and  completed  in  1825. 
The  canal  was  large  enough  to  accommodate  the  ships  employed  in  the  East  India  trade,  the  depth  of  the  water- 
way being  from  20  to  23  feet  and  its  width  from  100  to  130  feet.  The  North-HoUand  Canal,  however,  had 
numerous  curves,  and  it  was  constructed  by  way  of  a  roundabout  route  of  52  miles  from  Amsterdam  northward 
to  the  North  Sea,  whereas  Amsterdam  is  less  than  17  miles  from  the  sea  by  a  direct  hne. 

The  construction  of  the  North-HoUand  Canal  only  temporarily  met  the  needs  of  Amsterdam  for  an  outlet 
to  the  sea;  and  the  inadequacy  of  the  North-Holland  Canal  emphasized  the  necessity  for  a  larger  and  more  tlirect 
channel  to  the  ocean.  In  1863,  a  concession  for  the  construction  of  the  North  Sea  Canal  was  granted  to  Mr. 
J.  G.  Jager,  who  transferred  the  grant  to  the  Amsterdam  Canal  Co.  Construction  was  begun  on  March  8,  1865, 
and  the  canal  was  opened  November  1,  1876. 

The  waterway  extends  from  Amsterdam  westward  to  Ymuiden,  a  distance  of  16.7  miles.  For  three 
fourths  of  its  length,  as  is  shown  by  plate  10  at  the  end  of  tliis  volume,  the  channel  follows  the  "Y,"  an  arm  of 
the  Zuider  Zee.  To  confine  the  " Y"  and  to  reclaim  adjoining  land,  the  "Y"  was  narrowed  by  embankments 
between  which  the  canal  channel  was  dredged.  From  the  "  Y"  a  cut  was  made  through  the  dunes  to  the  North 
Sea,  where,  at  Ymuiden,  a  commodious  harbor  was  constructed.  In  the  construction  of  the  canal,  few  serious 
engineering  difficulties  were  encountered;  there  were  no  rivers  to  be  crossed,  no  towns  or  industrial  properties 
outside  of  the  city  of  Amsterdam  to  block  the  way,  and  only  three  bridges  to  be  built.  The  work  consisted 
mainly  of  building  embankments,  of  filling  in,  draining  and  reclaiming  land,  and  of  dredging  the  chaimel.  The 
canal  engineers  found  their  chief  difficulty  in  constructing  the  outer  harbor  and  the  moles  at  Ymuiden.  The 
harbor  has  a  length  of  nearly  5,100  feet,  and  a  clear  umer  basin  about  850  feet  across.  The  day  after  the  false 
work  of  the  moles  was  completed  it  was  damaged,  and  two  years  later  was  destroyed.  It  then  became  necessary 
to  lay  a  granite  base  for  the  great  concrete  blocks  which  were  put  down,  and  fastened  together  with  cement  and 
clamped  with  iron  rods. 

Three  locks  of  different  sizes  were  built  at  Ymuiden.  Vessels  of  443  feet  in  length,  52  feet  beam,  and  23 
feet  draft  could  pass  through  the  largest  lock;  but  the  chaixnel  of  the  canal  did  not  at  first  permit  the  passage  of 
vessels  of  greater  than  5  meters  (16.4  feet)  draft.  Although,  as  origmaUy  planned,  the  canal  had  a  bottom 
width  of  87.7  feet,  and  depth  of  24.6  feet,  or  7.50  meters  below  the  Netherlands  datum  at  Amsterdam,  these 
dimensions  were  not  fuUy  attained  untU  1880.  The  normal  level  of  the  canal,  however,  is  about  one-half  meter 
below  the  normal  water  level  at  Amsterdam;  and,  in  consequence,  the  actual  available  depth  was  only  7  meters 
(22.9  feet). 

The  canal  was  not  completed  according  to  the  original  plans.  Extensive  enlargements  and  improvements 
were  early  decided  upon,  in  order  to  enable  the  large  ocean  vessels,  the  size  of  which  was  constantly  increasing, 
to  reach  Amsterdam.  A  larger  lock  at  Ymuiden,  to  the  north  of  the  old  locks,  the  construction  of  which  was 
begun  in  1889,  was  completed  in  1896  with  a  length  of  225  meters  (738.08  feet),  a  breadth  of  25  meters  (82.02 
feet),  and  a  depth  of  9.5  meters  (31.2  feet).  At  that  time  it  was  the  largest  canal  lock  in  the  world.  Plans  are 
being  considered  providing  for  a  new  lock  that  wiU  be  larger  than  the  Panama  locks. 

133 


134 


PANAIVIA  CANAL  TRAFFIC  AND  TOLLS. 


The  work  of  deepening  the  channel  was  begun  in  1881,  the  plan  of  the  company  being  to  give  the  canal  a 
depth  of  S  meters  (26.24  feet)  at  ordinary  water  level;  but  the  execution  of  the  work  put  a  severe  strain  upon  the 
finances  of  the  company,  although  the  traffic  had  fulfilled  expectations  and  funds  had  been  received  both  from 
the  State  and  from  the  city  of  Amsterdam.  On  account  of  the  financial  condition  of  the  company,  the  State 
took  over  the  canal  in  1883,  since  which  date  it  has  been  operated  as  a  pubhc  waterway.  The  depth  of  8  meters  * 
had  been  attained  when  the  State  took  the  canal. 

The  total  amount  expended  upon  the  canal  during  the  years  1865  to  1883  was  39,880,000  florins  ($16,032,000) 
distributed  among  the  various  items  as  follows: 

Table  I.— COST   OF  NORTH  SEA   CANAL  (1865-1883). 


Jetties 

Breakwater  along  the  jetties. 

Dredging  of  the  port 

Lighthouse  and  signal  lights. 


8,700,000 

3,340,000 

4,540,000 

310,000 


3,497,400 

1,342,680 

1,825,080 

124,620 


Work  on  port  at  Ymuiden. . . 
Principal  canal  and  lateral  canals. 

Locks  at  Ymuiden 

Drainage  of  plain 

Roads,  ferryboats,  bridges,  etc 

Swing  bridges 


10,650,000 

1,530,000 

2,265,000 

715,000 

830,000 


4,281,300 
615,060 
910,530 
287,430 
333,660 


Canal  and  working  accessories 

Dredging  at  Schellingmonde 

Locks  and  steam  engine  with  pumps,  etc.. 


1,184,000 
3,161,000 


475,968 
1,270,722 


Work  to  the  east  of  Amsterdam. 

Expropriations  and  indemnities 

Technical  administration 


4,345,000 
1,055,000 
1,600,000 


6,789,780 


1,746,690 
424,110 
643,200 


16,031,760 


Tlie  completion  of  the  large  lock  at  Ymuiden,  in  1896,  was  followed  by  work  to  deepen  and  widen  the 
channel,  for  which  an  appropriation  was  made  by  the  Government  in  July,  1899.  At  the  same  time  funds  were 
provided  for  the  construction  of  new  bridges.  The  city  of  Amsterdam  also  contributed  10  per  cent  to  the  cost 
of  the  improvements.     The  work  was  completed  in  1905. 

The  Ymuiden  Harbor  and  the  channel  outside  of  the  locks  were  deepened  to  9.80  meters  (32.1  feet)  below 
the  ordinary  North  Sea  low-water  level,  and  the  canal  within  the  locks  was  deepened  to  9.80  ^  meters  below 
the  ordinary  level  of  the  water  in  the  canal.  The  normal  bottom  width  of  the  canal  was  increased  to  50  meters 
(164  feet),  and  the  -nddth  at  water  level  to  120  meters  (393.7  feet).  At  the  curves  the  bottom  width  is  now  60 
meters  (196.8  feet).  The  maximum  dimensions  of  vessels  passing  tlirough  the  Amsterdam  Canal  at  present 
are:  Length,  220  meters  (721.7  feet);  breadth,  24  meters  (78.7  feet);  and  draft,  9.20  meters  (30.1  feet).  The 
maximum  speed  for  vessels  with  a  draft  of  6  meters  (19.68  feet)  or  more  is  10.5  kilometers  (6.5  miles)  per  hour. 
The  Amsterdam  Canal  can  now  be  used  by  all  but  a  few  of  the  largest  seagoing  passenger  vessels,  and  it  is  suffi- 
ciently wide  to  permit  large  vessels  to  pass  each  other  at  any  point,  without  the  need  of  "lay-bys." 

Li  the  year  1896  the  fisheries  harbor  at  Ymuiden  was  opened  at  a  cost  of  1,860,000  florins  ($747,720).  It 
lies  on  the  south  side  of  the  outer  canal  and  has  an  area  of  17^  acres.  Alongside  the  fishers'  dock  a  wharf  has 
been  built,  with  covered  fish  markets,  a  storage  cellar,  coal  yards,  and  Qther  needed  facilities.  Within  a  short 
time  Ymuiden  became  one  of  the  leading  fishing  ports  in  Europe.  The  fishers'  docks,  the  outer  channel,  and 
Ymuiden  Harbor  are  charted  upon  plate  C. 

1  This  means  s  meters  depth  at  ordinarj'  water.    At  high  water  the  depth  was  8.50  meters  when  the  surlace  of  the  water  In  the  canal  was  at  the  Amsterdam  datimi. 
2 10.30  below  the  Netherlands  water  datum  at  Amsterdam. 


34998°— 12 10 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


135 


The  total  amount  spent  on  the  improvement  of  the  canal,  exclusive  of  the  fisheries  harbor,  during  the 
period  from  1883,  when  it  became  a  State  canal,  to  1907,  when  the  main  improvements  had  been  completed, 
was  18,306,411  florins  ($7,359,177.22),  distributed  among  the  several  works  according  to  figures  presented  in 
Table  II.  The  total  cost  of  construction  and  improvement  of  the  canal  from  its  beginning  to  1907  was  58,186,411 
florins  (.123,390,937.22).  The  small  amounts  spent  upon  the  canal  each  year  since  1907  are  also  stated  in 
Table  II. 

Table  II.— CONSTRUCTION  AND  IMPROVEMENT  COSTS  OF  NORTH   SEA  CANAL  (1883-1911). 


1883-1907 

1908 

1909 

1910 

1911 

Florins. 

Dollars. 

Florins. 

Dollars. 

Florins. 

Dollars. 

Florins. 

Dollars. 

Florins. 

Dollars. 

451,307 

489,804 

3,165,564 
5,766,583 

1,017,800 

4,748,831 
185,822 

607,523 
997,044 

876,133 

181,425.41 

196,901.21 

1,272,556.73 
2,318,166.36 

409,155.60 

1,909,030.06 
74,700.44 

244,224.25 
400,811.69 

352,205.47 

7,950 

3,195.90 

190 

76.38 

7,405 

Deepening  of  the  port  and  outer 

Enlargement  of  principal  canal  and 

Replacement  of  bridgeat  Velsen  by 

Replacement  of  railway  bridge  by 
new  bridges  of  greater  span 

New  installation  for  drainage  to 

Moles  at  exterior  of  locks  at  Zuider 
Zee,  and    improvement    of   the 

Various  improvements  to  the  old 
locks  at  Ymuiden,  to  the  locks  of 
the  Zuider  Zee,  and  to  the  other 

91,572 

36,811.94 

69,456 

27,921.31 

45,684 

18,364.97 

15,374 

6,180.35 

18,306,411 

7,359,177.22 

99,522 

40,007.84 

69,646 

27,997.69 

45,684 

18,364.97 

22,779 

9, 157. 16 

To  accommodate  its  trade,  the  city  of  Amsterdam  has  constructed  an  extensive  system  of  docks  and 
wharves,  which  are,  in  reaUty,  a  part  of  the  canal;  they  are  its  terminal  faciUties.  The  eastern  dock  (consult 
plate  11  at  the  end  of  this  volume)  is  used  chiefly  by  small  vessels  employed  in  inland  navigation;  the  western 
dock  is  used  mainly  to  accommodate  English  coal  cargoes;  and  the  commercial  quay  is  for  large  seagoing  vessels. 
The  inner  dock  of  the  commercial  quay  faciUtates  transshipments  to  Hghters  and  the  Rhine  barges.  Parallel  to 
the  commercial  quay  is  the  "Y  quay,"  wliich  was  originally  used  by  river  craft  and  barges,  but  has  been  con- 
verted into  a  second  commercial  quay.  There  is  an  "ore  quay"  used  for  the  handling  and  storage  of  coal  and  ore; 
a  "railway  dock"  used  by  the  Holland  Railway  Co.;  an  entrepot  dock;  a  petroleum  dock;  and  a  timber  dock. 
There  are  also  naval  dockyards,  dry  docks,  yachting  berths  and  shipbuilding  yards.  The  location  of  other 
minor  docks,  the  connection  of  the  several  docks  with  the  North-Holland  Canal,  the  Merwede  (Rhine)  Canal, 
and  the  Zuider  Zee  are  shown  on  plate  11.  Extensive  warehouses  are  provided  by  the  city,  in  addition  to  the 
private  warehouses  operated  by  warehouse  companies.  The  docks  are  unified  by  rail  connections,  and  are 
connected  with  interior  points  by  the  State  and  private  railway  systems. 

The  North  Sea  Canal  and  its  connection  with  other  waterways  and  with  the  railroads  are  shown  on  plate 
10.  The  Merwede  (Rhine)  Canal  connects  the  North  Sea  Canal  (and  Amsterdam)  with  the  Rhme,  the  North- 
Holland  Canal  runs  to  the  North  Sea  through  north  Holland,  the  Zaan  Canal  and  River  join  the  North  Sea 
Canal  with  the  city  of  Zaandam,  the  Orange  Locks  with  the  Zuider  Zee,  while  lateral  canals  unite  the  main 
waterway  with  Spaarndam,  Haarlem,  and  Hallweg. 


13G  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

II.  Traffic  of  the  North  Sea  Canal. 

The  gradual  increase  in  the  traffic  of  the  Amsterdam  Canal  is  shown  in  detail  in  Table  III.  The  gross 
tonnage  of  the  vessels  using  it  increased  from  1,401,128  in  1877  to  8,583,066  in  1911,  and  the  number  of  vessels 
during  the  same  period  increased  from  3,376  to  28,799.  Durmg  the  decade  1901  to  1911,  the  gross  tonnage 
increased  50.6  per  cent  and  the  number  of  vessels  196  per  cent.  Of  the  total  gross  tonnage  in  1911,7,968,257 
tons  were  of  seagoing  vessels,  the  remainder,  or  614,809  gross  tons,  were  of  fishing  and  other  small  craft.  In 
that  year  there  were  4,650  seagoing  and  24,149  fishing  and  other  smaU  vessels  locked  through  tlie  locks  at 
Ymuiden.  The  gross  tonnage  of  the  seagoing  vessels  using  the  canal  increased  43.4  per  cent  during  the  decade 
ending  with  1911,  although  the  number  of  seagoing  vessels  annually  using  the  canal  increased  .but  4.5  per  cent. 
Of  the  total  vessels  locked  at  Ymuiden  in  1911,  14,548  were  locked  inward  and  14,251  outward. 

Table  III  shows  also  that  the  gross  tonnage  entering  Amsterdam  in  1911  aggregated  3,573,498  gross  tons, 
and  was  39.1  per  cent  in  excess  of  the  entrances  in  1901  and  316  per  cent  greater  than  it  was  in  1877.  In  1911 
83.2  per  cent  of  the  entire  gross  toimage  locked  inward  at  the  North  Sea  locks  moved  through  the  canal  to 
Amsterdam;  but  owing  to  the  large  number  of  fishing  boats  and  small  vessels  engaged  in  local  traffic  only  16.2 
per  cent  of  the  total  number  of  vessels  that  passed  the  locks  were  entered  at  Amsterdam. 


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138 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


The  localities  from  which  the  vessels  entered  the  canal  are  indicated  by  Table  IV.  The  special  importance 
of  Amsterdam  as  an  ocean  port  is  in  the  over-sea  trade  with  the  Orient,  Australia,  and  the  Americas,  39.9  per 
cent  of  the  total  entrances  in  1911  originating  in  these  regions  taken  together.  Twentj'-eight  and  six-tenths 
per  cent  of  the  entrances  came  from  Great  Britain,  Portugal,  and  the  Atlantic  ports  of  France  and  Spain. 
The  remaining  entrances — 31.5  per  cent — which  include  vessels  from  the  Mediterranean  and  Black  Seas,  Nor- 
way and  Sweden,  the  Baltic  Sea,  White  Sea,  and  Gulf  of  Finland,  vessels  in  coasting  and  inland  navigation, 
and  those  in  miscellaneous  short  voyages,  are  classified  by  coimtr}'  of  origin  in  Table  IV. 

Table  IV.— CLASSIFICATION   OF   ENTRANCES   AT   AMSTERDAM. 


I.  Asia,  Australia,  and  America 

II.  Mediterranean  and  Black  Seas,  etc 

III.  Great  Britain,  France,  Spain  (Atlantic  coast)  and  Portugal 

IV.  Sweden  and  Norway 

V.  Baltic  and  White  Seas,  and  Finland  Gulf,  etc 

VI.  Short  voyages 

VII.  Coasting  and  inland  navigation 

Total 

Sailing  vessels 

Steamships 


Gross  ton- 
nage in  cubic 
meters. 


3,794,391 

515,875 
3,070,949 
412,093 
849,718 
603,244 
428,794 


9,675,064 


85,055 
9, 590, 009 


Gross  ton- 
nage in  cubic 
meters. 


4,091,599 
639,632 

2,825,436 
398,899 
977,066 
661,483 
480,445 


112,625 
9,961,935 


Gross  ton- 
nage in  cubic 
meters. 


4,044,301 
753,510 

2,899,104 
332,639 

1,047,203 
632,893 
403,893 


10,113,743 


111,879 
10,001,864 


Percent 
of  total 
in  1911. 


The  nature  of  the  cargo  carried  in  the  vessels  entering  Amsterdam  via  the  North  Sea  Canal  is  shown  in 
Table  V.  In  1911,  65.3  per  cent  of  the  entrances  consisted  of  vessels  carrying  general  and  mixed  cargoes,  8.5 
per  cent  of  vessels  loaded  with  timber,  and  6.2  per  cent  of  vessels  with  coal  and  coke.  The  remaining  20.0 
per  cent  of  the  entrances  consisted  of  vessels  carrying  grain,  rice,  linseed,  petroleum,  ore,  phosphate,  sugar, 
porcelain  clay,  salt,  and  passengers.     There  were  348  vessels  that  entered  in  ballast. 

Table  V.— NUMBER  OF  VESSELS  ENTERING  AMSTERDAM  (FOR  THE  MOST  PART  VIA  THE  NORTH  SEA  CANAL) 

CLASSIFIED   ACCORDING  TO   CARGOES. 


Numlier  of  vessels. 


General  and  mixed 

Grain,  rice,  and  linseed. 

Timber 

Petroleum 

Ore 

Coal  and  coke 


Phosphate 

Sugar 

Porcelain  clay 

Salt 

Timber  and  grain 

In  ballast  (without  cargo) . 

Total 


1,504 


PANAJMA  CANAL  TR.IFFIC  AND  TOLLS. 


139 


The  clearance  statistics  of  Amsterdam  are  less  satisfactory,  as  they  do  not  state  the  tonnage  of  vessels 
leaving  the  port.  Table  VI,  however,  shows  the  number  of  vessels  clearing  to  their  various  destinations.  As 
the  trade  of  the  Netherlands  with  the  Orient,  AustraUa,  and  the  Americas  consists  more  largely  of  imports 
than  of  exports,  and,  as  the  exports,  because  of  their  volimie  and  nature,  do  not  require  so  large  a  tonnage, 
the  clearances  to  these  countries  comprised  but  6.2  per  cent  of  the  total  in  1911.  The  clearances  to  Great 
Britain,  however,  aggregated  49.1  per  cent,  to  Germany  16.6  per  cent,  ajid  to  other  nearby  countries  26.8  per  cent. 

Table  VI.— NUMBER    OF    VESSELS    CLEARING    FROM    AMSTERDAM,    MAINLY    VIA    THE    NORTH    SEA    CANAL, 

CLASSIFIED   ACCORDING  TO   DESTINATION. 


Great  Britain. 

Gflrmany 

Denmark 

Korway 

Sweden 

Russia 


Belgium 

Fiance 

Spain  and  Portugal. 
Italy 


Mediterranean,  Greece,  Turkey,  Levant,  Danube,  and  Egypt. 

Africa 

East  Indies 

West  Indies 

British  Indies 

Australia 

North  America  and  Canada 

South  America 

North  Sea  (to  fish) 

Dutch  ports 

China 

Madeira 

Algiers 

Austria 


In  1911,  1,507  of  the  vessels  clearing  from  Amsterdam  were  loaded  with  general  cargo,  12  with  coal  or 
coke,  10  with  phosphate,  and  21  with  tar  oil. 

A  large  share  of  the  commerce  using  the  North  Sea  Canal  to  and  from  Amsterdam  is  transshipped  at  the  city. 
It  comes  from  or  is  destined  to  inland  points  in  Europe.  The  rail  and  waterway  connections  of  Amsterdam 
enable  the  city  to  retain  a  share  of  the  through  business,  even  though  Rotterdam,  Antwerp,  and  North  German 
ports  have  become  of  greater  importance  in  the  foreign  and  coasting  trades.  Table  III,  above,  shows  that  the 
locks  at  Zeeburg,  the  Amsterdam  terminus  of  the  Merwede  Canal,  which  connects  the  port  with  the  Rhine 
Kiver,  passed  59,148  vessels,  with  a  gross  tonnage  in  cubic  metei-s  of  8,986,501,  in  1911;  and  in  the  same  year  the 
Orange  locks,  which  lead  to  the  Zuider  Zee,  passed  64,875  vessels.  Of  the  vessels  passing  through  the  Merwede 
Canal,  3,357,  ^vith  a  gross  tonnage  of  2,016,953  in  cubic  meters,  were  Rhine  vessels,  and  the  remainder  small 
inland  craft. 

The  t}-pes  of  vessels  entering  and  dealing  the  North  Sea  locks  are  shown  in  Table  VII.  Ninety-nine  per 
cent  of  the  seagoing  tonnage  passing  the  Ymuiden  locks  in  1911  was  of  steamers. 


140  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Table  VII.— TYPES  OF  VESSELS   PASSING  THROUGH  THE  NORTH   SEA   LOCKS   AT  YMUIDEN,  1911. 


From  the  sea. 

To  the  sea. 

Typeof  vessel. 

Number. 

Gross  tons 
(cubic  meters). 

Number. 

Gross  tons 
(cubic  meters). 

A.  Seagoing  vessels: 

60 
2,268 

92,837 
11,177,762 

55 

2,267 

100,392 

11,179,176 

2,328 

11,270,599 

2,322 

11,279,568 

B.  Small  coasting  vessels: 

1,164 
2,653 
8,403 

151,320 
221,501 
502,710 

1,119 
2,467 
8,343 

142,856 

213,640 

507,882 

12,220 

875,531 

11,929 

864,378 

14,548 

12,146,130 

14,251 

12,143,946 

I  Flatrbottomed  vessels. 


The  nationality  of  most  of  the  vessels  using  the  North  Sea  Canal  is  shown  in  Table  VIII,  wliich  classifies 
by  flags  the  vessels  which  entered  and  cleared  at  Amsterdam  in  1911.  The  table  does  not  include  the  vessels 
that  passed  through  the  locks  at  Ymuiden  without  entering  at  Amsterdam.  It  is  also  possible  that  a  few  of  the 
vessels  that  are  recorded  as  having  entered  or  cleared  at  Amsterdam  may  not  have  used  the  North  Sea  Canal. 

Table  VIII.— NATIONALITY  OF  VESSELS   ENTERING  AND   CLEARING  AT  AMSTERDAM. 


Flag. 


Entered.       Cleared. 


Dutch 

British 

German 

Norwegian . 
Swedish — 

Danish, 

Bussian 

Spanish — 

Italian 

French 

Austrian . . . 

Belgian 

American  . 


Total. 


The  traffic  of  the  North  Sea  Canal  has  not  increased  so  rapidly  as  has  that  of  other  large  sea  canals.  It  had 
a  growth  of  50.6  per  cent  in  the  total  gross  tonnage  and  of  43.4  per  cent  in  the  gross  tonnage  of  seagoing  vessels 
during  the  decade  1901  to  1911,  as  compared  with  an  increase  of  69.3  per  cent  in  the  net  tonnage  using  the  Suez 
Canal,  and  increases  of  97.2  per  cent  and  70.7 '  per  cent,  respectively,  in  the  net  tonnage  using  the  Manchester  Ship 
and  Kaiser  Wilhelm  Canals.  Amsterdam  is  less  favorably  situated  than  are  Rotterdam,  Antwerp,  and  the  North 
German  ports  for  engaging  in  the  transshipment  trade  with  the  interior.  Though  Manchester,  like  Amsterdam^ 
is  an  interior  port,  it  is  the  center  of  an  industrial  district  of  far  greater  importance  than  that  surrounding 
Amsterdam. 

The  importance  of  the  North  Sea  Canal  is,  however,  not  to  be  measured  solely  by  the  relative  volumes  of 
traffic  handled  by  it  and  other  ship  canals.  Its  success  is  shown  rather  by  the  fact  that  the  city  of  Amsterdam 
has  continued  to  have  a  large  transshipping  business  and  that  the  city  has  remained  one  of  the  great  markets 
of  Europe.     Amsterdam  has  lost  groimd,  relatively  to  other  cities,  but  its  trade  has  increased  greatly.     In 


I  Decade  1900  to  1910. 


PANAJVIA  CANAL  TRAFFIC  AND   TOLLS. 


141 


view  of  Amsterdam's  geographical  position,  the  advance  of  43.4  per  cent  in  the  seagoing  tonnage  of  the 
North  Sea  Canal  during  the  decade  ending  with  1911  is  substantial.  As  stated  by  the  Amsterdam  Chamber  of 
Commerce  and  Industry-:  "One  thing  is  not  open  to  contradiction — that  Amsterdam  ranks  first  among  Holland's 
towns.  Although  as  a  transit  port  she  has  to  j-ield  the  palm  to  Rotterdam,  as  the  staple  for  Holland's  com- 
merce she  is  the  first ;  as  an  import  harbor  for  colonial  produce  she  is,  for  some  articles,  even  the  first  in  Europe." 

in.  Expenditures  and  Revenues  in  Connection  with  the  North  Sea  Canal. 

The  Amsterdam  Canal  was  originaUy  constructed  by  a  private  company,  to  which  the  State  and  the  city  of 
Amsterdam  gave  financial  aid.  The  company  secured  revenue  from  canal  tolls  and  harbor  dues,  and  from  the 
sale  of  lands  which  were  reclaimed  by  the  "  Y  "  embankments.  The  silting  of  the  canal  channel,  however,  made 
the  construTition  and  maintenance  expenses  greater  than  was  anticipated;  and  the  tolls,  though  so  high  as  to 
be  regarded  a  burden  on  trade,  did  not  yield  enough  revenue  to  make  the  company  financially  solvent.  In  1883 
the  State  purchased  the  canal,  in  order  thereby  to  safeguard  the  future  development  of  Amsterdam. 

The  State  did  not  immediately  abolish  the  canal  tolls  and  harbor  dues,  although  it  reduced  them  in  1885; 
but  in  1890  the  tolls  on  vessels  bound  for  Amsterdam  and  Zaandam — the  two  mimicipalities  having  made  a 
partial  contribution  therefor  to  the  State — were  abolished,  and  in  1893  all  tolls  and  all  harbor  dues  at  Ymuiden, 
the  canal  port  maintained  by  the  State,  were  done  away  with. 

The  revenue  received  from  the  canal  tolls  and  the  Ymuiden  Harbor  dues  from  1876  to  1890  are  stated  in 
Table  IX.  The  average  annual  cost  of  maintaining  and  operating  the  canal  during  the  years  1883  to  1887  was 
349,595  florins  ($140,537).     Most  tolls  were  aboUshed  in  1890. 

Table  IX.— RECEIPTS  FROM   NORTH   SEA  CANAL  TOLLS  AND   HARBOR   DUES,   1876-1890. 


Year. 

Florins. 

Dollars. 

Year. 

Florins. 

Dollars. 

11,689.96 
182,640.95 
174,623.29 
203,796.48 
.        230,045.96 
240,424.10 
283,208.66 
290,857.43 

4,699.36 
73,421.66 
70,198.56 
81,926.18 
92,478.48 
96,650.49 
113,849.88 
116,924.69 

1884 

296,478.52 
241,908.73 
231,193.07 
240,310.30 
247,104.71 
241, 192. 13 
130,348.89 

119,184.36 

1885 

97,247.31 

1886 

92,939.62 

1887 

96,604.74 

1888 

99,336.09 

1889 

96,959.24 

1890 

52,400.25 

The  cost  of  maintaining  and  operating  the  Amsterdam  Canal  is  shown  in  Table  X.  The  chief  expense  is  for 
maintaining  the  depth  of  the  channel  and  the  port  outside  of  the  locks.  The  expenditures  stated  in  the  table  do 
not  include  the  $7,454,705  that  were  spent  for  construction  and  permanent  improvements  duiing  the  period 
1883  to  1911. 

Table  X.— COST   OF  OPERATION   AND  MAINTENANCE  OF  NORTH   SEA   CANAL. 


Total,  1883  to  1906. 


Florins.         Dollars. 


Annual  average. 


Florins.        Dollars. 


Florins.         Dollars. 


Florins.        Dollars. 


Maintenance  of  jetties  or  moles 

Maintenance  of  depth  of  port  and  canal  outside  of  the  locks 

Maintenance  of  principal  canal  and  lateral  canals: 

Dredging 

Embanking 

Maintaining 

Maintenance  of  locks,  bridges,  ferries,  buildings,  etc 

Operation  of  locks,  bridges,  ferries,  lighting  plant,  etc.  (wages  not 

included) ' 

Drainage  of  water 


354,324 
5,560,518 

367,903 
163,872 
257,759 
991,756 

527,714 
273,254 


142,438.25 
2,235,328.23 

147,897.01 
65,876.54 
103,619.12 
398,685.91 

212,141.03 
109,848.11 


14,763 
231,688 

15,329 
6,828 
10,740 
41,323 

21,989 
11,385 


93,138.57 

6, 162. 26 
2,744.86 
4,317.48 
16,611.84 


20,450 
233,530 

14,770 
10,765 
16,090 
26, 175 

15,935 
11,880 


8,220.90 
93,879.06 

5,937.54 
4,327.53 
6,468.18 
10,522.35 

6,405.87 
4,815.96 


13,960 
312, 190- 

11,343 

7,862 
12,596 
67,740 

43,970 
16,535 


Total 8,497,100    3,415,834.20 


140,577.39 


486, 196 


5,611.92 
125,500.38 

4,559.89 
3,160.52 
5,063.59 
27,231.48 

17,675.94 
6,647.07 


1  The  expenditures  for  operation  of  locks,  ferries,  etc.,  do  not  include  wages  of  the  personnel,  which,  in  1907,  amounted  to  $33,173;  in  1908,  S34,463;  in  I 
in  1910,  435,237,  and  in  1911,  $36,725. 


142  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Table  X.— COST  OF  OPERATION  AND  MAINTENANCE  OF  NORTH  SEA  CANAL— Continued. 


Florins.         Dollars. 


Maintenance  of  jetties  or  moles 38, 765 

Maintenance  of  deptli  of  port  and  canal  out- 
side of  the  loclis '    337, 555 

Maintenance  of  principal  canal  and  lateral 
canals: 

Dredging 7, 700 

E  mbanking 7, 027 

Maintaining 12,  446 

Maintenance  of  locks,  bridged,  ferries,  build- 
ings, etc 67, 802 

Operation  of  locks,  bridges,  ferries,  lighting 

plant,  etc.  (wages  not  Included)  i 67, 277 

Drainage  of  water 14, 234 


Total 552, 


15, 583. 53 
135,697.11 


3,095.40 
2,824.86 
5,002.89 


27,045.35 
5, 722. 07 


31,590 
337,555 


2,990 
7,700 
9,552 


82, 566 
11,974 


12, 699. 18 
135,697.11 


1,201.98 
3,095.40 
3, 839. 90 


33, 191.  53 
4,813.55 


31,590 
337,555 


1,250 
7,735 
10,827 


65,  415 
11,731 


12,699.18 
135,697.11 


502.50 
3, 109.  47 
4,352.45 


26,296.83 
4,715.86 


40,090 
337, 555 


19,638 
7,702 
9,577 


61,528 
12,293 


16,116.18 
135,697.11 


7,894.48 
3,096.20 
3,849.95 


24,734.25 
4,941.79 


28,735 
7,841 
11,838 


66,041 
8,220 


11,410.37 
137,498.47 


11,551.47 
3,152.08 

4,758.88 


26,548.48 
3,304.44 


•  The  expenditures  for  operation  of  locks,  ferries,  etc.,  do  not  include  wages  of  the  personnel,  which,  in  1907,  amovmted  to  $33,173;  In  1908,  $34,463:  in  1909,  $34,371: 
In  1910,  $35,237,  and  in  1911,  $36,725. 

The  North  Sea  Canal,  with  the  exception  of  two  railway  bridges,  which  are  under  the  control  of  the 
Holland  Railway  Company,  is  State  property  maintained  and  operated  by  the  Government.  The  fisheries  dock 
and  two  of  the  covered  fish  markets  at  Ymuiden  are  also  managed  by  the  State,  a  duty  of  1  per  cent  being 
levied  on  the  amount  received  from  the  sale  of  fish  to  reimburse  the  Government  for  maintaining  the  market 
facilities. 

Various  charges  must  be  paid  by  those  who  use  the  North  Sea  Canal.  Seagoing  vessels,  while  navigating 
the  canal,  are  required  to  engage  a  State  pilot,  as  at  any  Dutch  port.  Towage  is  supplied  by  private  towing 
companies,  which  maintain  tugs  at  Ymuiden  and  collect  regular  charges  based  upon  the  tonnage  of  the  vessels 
served. 

The  port  of  Amsterdam  is  a  municipal  port,  and  the  municipaUty  levies  dues  for  the  use  of  the  harbor  in 
accordance  with  the  following  tariff  (Table  XI) : 

Table  XI.— SCHEDULE  OF  MUNICIPAL  HARBOR  DUES  AT  THE  PORT  OF  AMSTERDAM. 


Per  cubic  meter 
of  vessel  capac- 
ity (florins). 


I.  On  seagoing  vessels,  e.\cept  those  under  II,  III,  and  IV: 

1.  Steamers 

2.  Other  seagoing  vessels 

n.  On  seagoing  vessels  loaded  w  ith  timber,  and  on  herring  boats: 

1.  Steamers 

2.  O  ther  seagoing  vessels 

III.  On  seagoing  vessels  loaded  with  coal,  coke,  cast  iron,  clay,  or  kaolin,  and  on  sea  tugs: 

1.  Steamers 

2.  Other  seagoing  vessels 

IV.  On  seagoing  vessels,  loaded  with  iron  ore  (not  including  sulphur  ore  orpyrite)  or  with  pitch  only: 

1.  Steamers 

2.  other  seagoing  vessels 


.0175 
.025 


On  seagoing  vessels  with  a  mixed  cargo,  the  dues  are  levied  according  to  the  tariff  under  which  the  greater  part  of  the  cargo  falls.     The 
■dues  are  refunded  to  vessels  which  have  arrived  or  sailed  empty. 

The  amount  collected  as  harbor  dues  from  seagoing  vessels  in  1911  was  376,030  florins  ($151,164.06).     The 
collections  have  in  recent  years  increased,  the  amounts  since  1899  being  as  follows: 


Florins. 

1899 237, 612.  45 

1900 243, 068.  57 

1901 260, 015. 13 

1902 272, 185. 04 

1903 273, 419.  41 

1904 287,  471.  71 

1905 295, 614. 89 


Florins. 

1906 312, 324.  25 

1907 316,  736.  59 

1908 348,  903.  45 

1909 357,  462.  37 

1910 377, 036. 03 

1911 376, 030. 12 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  143 

The  harbor  dues  on  inland  vessels  yielded  166,879  florins  in  1910  and  170,847  ($68,640.49)  in  1911.  The 
combined  harbor  dues  on  seagoing  and  inland  vessels,  in  1911,  produced  546,877  florins  ($219,844.55). 

The  majority  of  the  wharves,  quaj's,  warehouses,  sheds,  cranes,  lifts,  and  other  port  facihties  at  Amsterdam 
are  owned  and  operated  by  the  municipahty,  and  charges  for  their  current  use  are  in  accordance  with  regular 
tariffs.  Some  navigation  companies,  however,  lease  space  and  facilities  from  the  municipality,  paying  a  rental 
for  the  exclusive  use  of  the  space  and  facihties.  There  are  also  private  companies  wliich  do  a  warehousing 
business,  handle  freight  to  and  from  the  warehouses,  arrange  to  store  goods  in  bond,  and  to  operate  cranes  and 
other  port  appliances.     Their  charges  and  services  are  regulated  by  the  municipahty. 

The  Amsterdam  Canal  is  a  free  waterway  in  that  no  toHs  are  charged  and  no  harbor  dues  are  collected  by 
the  State  for  the  use  of  the  harbor,  or  port,  of  Ymuiden.  Pilotage  fees  are  collected  by  the  State,  towage  charges 
are  made  by  private  companies,  harbor  dues  are  collected  by  the  municipality  of  Amsterdam,  and  rentals  and 
other  charges  by  the  municipahty  and  private  companies  are  exacted  for  the  use  of  wharves,  warehouses,  loading 
and  unloading  apphances,  and  for  all  terminal  services  rendered. 

The  North  Sea  Canal  is  a  waterway  constructed  and  maintained  primarily  to  enable  Amsterdam  and  Holland 
to  retain  their  old-time  place  in  foreign  commerce,  and  particularly  in  the  trade  of  East  India,  where  HoHand 
has  large  territorial  possessions.  The  waterway  is  of  such  vital  importance  to  Holland  that  the  State  is  justified 
in  making  the  canal  practically  a  free  liighway.  It  is  the  only  one  of  the  large  ocean-ship  canals  upon  which  no 
tolls  are  charged;  and  the  cUstinctly  national  character  of  the  waterway  accounts  for  the  exceptional  pohcy  of 
Holland  as  regards  tolls. 

The  North  Sea  Canal  bears  much  the  same  relation  to  Amsterdam  as  the  improved  channel  of  the  Delaware 
River  bears  to  Philadelphia  or  the  improvements  of  the  lower  Mississippi  River  bear  to  New  Orleans.  All  three 
of  these  cities,  formerly  natural  ocean  ports,  were  threatened  with  commercial  isolation  untU  each  was  given  an 
improved  or  artificial  channel  to  the  sea.  In  the  case  of  Amsterdam,  the  construction  of  a  canal,  instead  of  the 
improvement  of  a  river  channel  was  necessary,  but  the  purpose  of  each  improvement  was  the  same — to  insure 
the  future  growth  of  a  port  and  trade  center  upon  which  the  prosperity  of  its  surrounding  territory  was  dependent. 


PART  TWO. 


TOLLS  AND  REVENUE. 


"^ 


CHAPTER   IX. 


THE   BASIS  OR  UNIT   OF   TOLL   LEVIES  UPON 
MERCHANT   SHIPS   AND   WAR  VESSELS. 


CHAPTER  IX. 


THE  BASIS  OR  UNIT  OF  TOLL  LEVIES  UPON  MERCHANT  SHIPS  AND  WAR  VESSELS. 

Canal  tolls  may  be  levied  either  upon  the  ships  that  use  the  waterway  or  upon  the  cargo  and  passengers 
carried  by  the  vessel.  If  the  tonnage  of  the  ship,  as  distinct  from  the  tonnage  of  what  is  in  the  vessel,  be  made 
the  basis  of  the  tolls,  the  charges  may  be  imposed  upon  the  ship's  displacement,  its  gross  tonnage,  its  net  ton- 
nage, or  its  dead-weight  capacity.  If  the  cargo  in  the  ship  is  taken  as  the  basis  of  toUs,  the  unit  upon  which 
the  charges  are  imposed  may  be  the  long  ton,  the  metric  ton,  or  the  measurement  ton. 

The  words  ton  and  tonnage  are  used  with  so  many  different  meanings  as  to  confuse  the  layman  without 
expert  knowledge  of  naval  and  shipping  practice;  but  the  terms  must  be  constantly  employed  in  the  following 
discussion  of  canal  tolls  and  revenue.  It  seems  desirable  to  introduce  this  and  the  following  chapters  with  a 
concise  definition  of  the  several  kinds  of  tons  and  of  the  relation  of  the  different  tons  to  each  other.  In  the 
volume  containing  the  report  upon  The  Measurement  of  Vessels  will  be  found  a  full  explanation  of  each  kind 
of  vessel  ton  and  an  account  of  the  method  by  which  each  kind  of  tonnage  is  determined. 

Vessel  Tonnage. 

The  displacement  tonnage  of  a  vessel  is  its  weight  in  tons  of  2,240  pounds  and  is  equal  to  the  weight  of 
water  displaced  by  the  ship  when  floating.  From  the  plans  and  drawings  required  for  the  construction  of  a 
vessel  may  be  calculated  the  number  of  cubic  feet  of  water  which  the  ship  will  displace  at  any  given  draft. 
The  weight  of  a  cubic  foot  of  sea  water  being  .35  pounds,  the  displacement  tomiage  is  readily  determined.  Dis- 
placement tonnage  is  used  to  designate  the  size  of  war  vessels,  but  is  not  employed  for  merchant  shipping, 
except  by  shipbuilders. 

A  vessel  ton  is  a  purely  arbitrary  unit — 100  cubic  feet.  The  gross  tonnage  of  a  vessel  is  obtained  by  divid- 
ing by  100  the  number  of  cubic  feet  of  the  entire  closed-in  capacity  of  the  ship.  A  vessel  has  1  "gross"  ton  for 
each  100  cubic  feet  of  its  entire  capacity.     This  method  of  determining  gross  tonnage  dates  from  1854. 

To  establish  a  uniform  method  of  measuring  and  registering  vessels,  the  British  Government,  in  1852, 
adopted  a  method  of  measuring  the  cubical  capacities  of  hulls  that  a  Mr.  Moorsom  had  worked  out.  The 
British  Government  wishing  to  change  as  little  as  possible  the  tonnage  of  the  merchant  marine  as  the  figures 
then  stood  on  the  registry  books,  instructed  Mr.  ^loorsom  to  submit  a  plan  of  applying  his  method  of  meas- 
uring vessels  in  such  a  way  as  to  cause  a  minimum  increase  or  decrease  in  the  existing  registry  of  ships.  The 
total  register  tonnage  of  the  British  marine,  in  1852,  was  3,700,000,  as  then  reported  to  the  Government;  and 
Mr.  Moorsom  found  that  his  system  of  measuring  ships  made  the  total  capacity  of  the  hulls  of  the  British  fleet 
863,412,456  cubic  feet.  Thus  he  said  that  "if  the  real  total  capacity  in  cubic  feet  is  divided  by  the  total  register 
tonnage,  the  dividend  will  be  the  figure  by  which  the  capacity  in  cubic  feet  must  be  divided  in  order  to  produce 
this  registered  toimage."  The  ratio  of  the  toimage  as  it  stood  on  the  British  books,  3,700,000  in  1852,  to  Moor- 
som's  figures  for  the  capacity  of  British  ships,  "363,412,456,"  was  98.22.  To  simpUfy  the  calculation  of  gross 
register  tonnage,  the  Government  adopted  100  cubic  feet,  instead  of  98.22  cubic  feet,  as  a  vessel  ton.  The 
vessel  ton  of  100  cubic  feet  was  made  official  by  the  British  merchant  shipping  act  of  1854.  The  Moorsom 
rules  for  measuring  vessels  were  adopted  by  the  United  States  in  1865  and  by  most  countries  of  the  world 
between  1870-1890. 

To  determine  the  net  tonnage  of  a  vessel,  there  is  ordinarily  deducted  from  the  entire  closed-in  capacity 
of  the  ship  the  space  occupied  by  the  crew,  master's  cabin,  steering  and  anchor  gear  below  deck,  boat- 
swain's stores,  chart  house,  and  spaces  occupied  by  propelling  power  (engines,  boilers,  shaft  tunnel,  and  coal 
bunkers).  The  Suez  rules,  however,  do  not  make  some  of  these  deductions.  The  subtractions  having  been 
34998°— 12 11  149 


150  PANAJVIA  CANAL  TKAFFIC  AND  TOLLS. 

made,  the  net  tonnage  is  ascertained  by  dividing  the  number  of  cubic  feet  in  the  remaining  space  by  100. 
In  an  up-to-date  freight  steamer,  as  measured  by  British,  American,  or  German  rules,  the  net  tonnage  is 
somewhat  less  than  two-thirds  the  gross  tonnage.  In  the  case  of  a  high-speed  passenger  vessel  so  much  of 
the  capacity  of  the  ship  is  taken  up  with  propelling  machinerj^,  fLxed  coal  bunkers,  crew  space,  etc.,  that  the 
net  tonnage  may  be  less  than  half,  sometimes  not  more  than  one-third  of  the  gross  tonnage. 

The  dead-weight  capacity  of  a  vessel  is  the  number  of  tons  of  2,240  pounds  that  the  vessel  is  capable  of 
carrying  when  loaded  to  its  maximum  draft.  Dead-weight  capacity  is  a  unit  of  frequent  commercial  usage. 
The  number  of  tons  dead-weight  that  a  ship  can  carry  at  a  designated  draft  is  stated  in  the  dead-weight  scale 
which  is  shown  on  the  vessel's  plan,  a  copy  of  which  is  furnished  to  charterers  when  required.  This  scale  shows 
the  dead-weight  capacity  at  various  drafts  from  an  empty  to  a  fuU-laden  vessel — a  British  vessel  being  fuUy 
laden  when  so  loaded  as  to  immerse  the  huU  to  the  PlimsoU  line  which  the  British  laws  require  to  be  painted 
on  the  outside  of  the  huU.  The  payment  for  vessels  chartered  for  a  period  of  time  is  based  upon  dead-weight 
capacity,  i.  e.,  time  charter  rates  are  a  certain  sum  per  dead-weight  ton  per  month.  The  ratio  of  net  tonnage 
to  dead-weight  capacity  depends  upon  the  type  of  vessel  and  upon  the  rules  appJied  in  the  measurement  of 
the  ship.     Ordinarilj'  the  dead- weight  capacity  is  from  21  to  2|  times  the  net  tonnage. 

Cargo  Tonnage. 

The  cargo  ton  is  of  two  classes — weight  and  measurement.  The  weight  ton  employed  in  ocean  commerce 
is  either  the  English  long  ton  of  2,240  pounds  or  the  metric  ton  of  2,204.62  pounds.  Countries  having  the 
metric  system  of  weights  and  measures  have  the  metric  ton,  while  countries  with  the  English  system  of  weights 
and  measm-es  have  the  long  ton.  The  English  short  ton  of  2,000  pounds  is  used  for  most  traffic  by  rail  and  by 
inland  waterways  within  the  United  States. 

A  large  share  of  the  cargo  carried  by  ocean  vessels  is  sliipped  not  by  weight  but  by  measurement  tonnage, 
40  cubic  feet  being  considered  a  ton.  Grain,  minerals,  and  some  other  articles  regularly  move  by  weight,  but 
manufactures,  general  merchandise,  and,  in  fact,  most  kinds  of  ocean  freight,  are  taken  at  "ship's  option,"  weight 
or  measurement,  and  the  option  taken  is  ordinarily  measurement.  It  is  said  that  40  cubic  feet  was  adopted  as  a 
measurement  ton  because  a  long  ton  of  wheat  occupies  40  cubic  feet  in  the  hold  or  berth  of  a  ship.  In  the  statis- 
tics of  ocean  freight  both  the  long  ton  of  2,240  pounds  and  the  measurement  ton  of  40  cubic  feet  are  indiscrimi- 
nately included ;  and  thus  it  is  not  possible  to  ascertain  from  published  statistics  of  ocean  cargo  tonnage  the  actual 
weight  of  traffic  moved  upon  the  high  seas. 

Tonnage  Ratios. 

In  loading  vessels  heavy  articles  of  comparatively  small  bulk,  such  as  pig  iron,  steel  rails,  grain,  etc.,  are 
placed  in  the  bottom  of  the  sliip's  hold  to  steady  the  vessel.  On  top  of  the  heavy  cargo,  package  freight  or 
general  merchandise  is  placed  in  order  to  make  maximum  use  of  the  available  cargo  space  in  the  vessel.  The 
larger  the  amount  of  measurement  cargo  the  greater  the  number  of  "tons"  of  paying  freight  that  can  be  carried. 
A  modern  freight  steamer  of  the  closed-in  shelter-deck  type  (ship  with  the  space  above  the  upper  deck  entirely 
inclosed)  can  be  loaded  with  measurement  cargo  of  a  greater  tonnage  than  its  deadweight  capacity.  A  British 
ship  of  4,640  tons  gross  register  (to  cite  figures  regarding  an  actual  sliip)  has  a  dead-weight  capacity  of  8,500  tons. 
If  suitable  commodities  can  be  obtained,  this  ship  can  be  loaded  with  9,500  tons  of  measurement  cargo.  On  the 
other  hand,  a  ship  of  the  well-deck  type  (a  vessel  upon  wliicli  the  space  on  the  main  deck  between  the  bridge  house 
and  the  poop  is  not  inclosed)  may  have  a  dead-weight  capacity  exceeding  the  number  of  tons  of  measurement 
cargo  it  can  carry.  An  actual  freight  vessel  of  British  registry  of  the  well-deck  type  is  reported  to  have  5,400 
tons  gross  register,  a  dead-weight  capacity  of  8,515  tons,  and  space  for  8,500  tons  of  measurement  cargo. 

The  ratio  of  the  net  tonnage  of  any  particular  shij)-  to  its  gross  tonnage  and  to  the  number  of  tons  of  cargo 
it  can  carry  ^vill  vary  with  the  vessel's  type  of  construction  and  the  rules  employed  in  determining  net  tonnage; 
but,  taking  freight  steamers  as  they  run,  the  net  tonnage  as  determined  by  British  rules  is  about  61  per  cent  of 
the  gross.  The  American  rules  produce  a  net  tonnage  averaging  66  per  cent  of  the  gross,  while  the  Suez  Canal 
rides  make  the  average  net  tonnage  of  all  vessels  using  that  canal  72  per  cent  of  the  gross.  Loaded  cargo  steamers 
carry  on  the  average  about  2^  tons  of  dead-weight  freight  for  each  ton  net.  The  ratio  of  net  tonnage, 
gross  tonnage  and  tons  of  dead- weight  freight  is  as  1  to  1 J  to  2^.     For  example,  a  cargo  steamer  of  6,000  tons 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  151 

gross  tonnage  will  measure  about  4,000  tons  net  tonnage  and  will  ordinarily  carry  about  9,000  tons  of  dead- 
weight freight.  By  combining  both  weight  and  measurement  cargo  in  the  lading,  the  ratio  of  cargo  tonnage  to  net 
tomaage  may  be  made  2f  to  1. 

In  the  sailing  vessel  the  ratio  of  net  to  gross  tonnage  is  much  liigher,  being  about  7  to  8,  because  none  of  the 
ship's  space  is  occupied  by  propelling  engines  and  coal  bunkers.  The  cargo  tonnage  of  a  loaded  sailing  vessel — 
number  of  tons  of  freight — averages  about  one  and  two-thirds  times  the  net  tonnage.  In  other  words,  the  ratio 
of  net  tonnage,  gross  tonnage,  and  cargo  tonnage  in  an  up-to-date  sailing  vessel  is  about  7  to  8  to  12.  A  sailing 
vessel  of  2,100  tons  net  tonnage  will  measure  about  2,400  tons  gross  and  will  be  capable  of  carrying  about  3,500 
tons  of  dead-weight  freight. 

The  ratio  of  cargo  tonnage  (tons  of  freight  carried)  to  the  net  tonnage  of  the  shipping,  including  both 
sail  and  steam,  actually  employed  in  the  commerce  of  the  world  was  shown  by  an  investigation  made  in 
1899  to  be  about  IJ  to  1.  The  ratio  was  found  to  be  somewhat  different  in  the  commerce  of  different  sections 
of  the  world,  a  fact  that  would  naturally  result  from  differences  in  cargo  handled  and  in  the  extent  to  whict 
vessels  could  be  operated  with  full  lading  instead  of  light  or  in  ballast. 

Basis  of  Tolls  on  IIercuaxt  Vessels. 

The  tolls  levied  for  the  use  of  the  canal  will  be  charges  exacted  in  return  for  the  services  rendered  by  the 
canal.  The  tolls  must  not  exceed,  and  for  most  sliipping  should  bo  less  than,  the  saving  or  benefits  vessels 
derive  from  taking  the  Panama  instead  of  some  other  route.  In  deciding  upon  the  basis  of  canal  charges  and 
upon  the  rate  of  tolls  to  be  levied  two  considerations  should  control  the  decision — what  a  ship  can  afford  to  pay 
and  what  is  the  most  equitable  basis  upon  which  to  impose  the  charges  the  vessel  can  afford  to  pay.  The 
succeeding  chapters  of  this  volume  attempt  to  indicate  what  tolls  may  wisely  be  charged  at  Panama.  The  basis 
upon  which  the  toll  should  be  levied,  i.  e.,  the  unit  upon  which  the  rate  of  toll  should  be  charged — whether  a  ship 
ton  or  a  freight  ton — is  discussed  in  detail  in  the  volume  on  The  Measurement  of  Vessels;  but  it  is  desirable  in 
this  connection  to  consider  or  review  briefly  the  principles  that  should  be  followed  in  imposing  tolls  upon  the 
shipping  or  commerce  that  uses  the  canal. 

The  basis  of  tolls  upon  a  merchant  vessel  should  be  the  ship's  earning  capacity.  Tolls  must  be  paid  from 
the  revenues  obtained  by  vessels  engaged  in  transporting  freight  and  passengers  over  the  route  through  the 
canal.  The  measure  of  a  ship's  earning  capacity  is  the  space  available  for  carrying  freight  and  passengers, 
and  tolls  should  be  levied  upon  that  capacity  accurately  determined  by  scientific  rules. 

Net  tonnage,  when  accurately  determined,  is  the  measure  of  a  ship's  freight  and  passenger  capacity, 
and  is  thus  the  fairest  basis  upon  which  to  levy  toUs.  It  is  the  universal  practice  of  the  nations  of  the  world 
to  levy  tonnage  taxes  and  most  other  vessel  charges  upon  net  tonnage.  Canal  tolls  at  Suez  and  elsewhere 
are,  with  minor  exceptions,  levied  upon  this  basis.  The  rules  followed  by  different  nations  in  determining  net 
register  tonnage  vary,  because  it  is  more  or  less  definitely  the  policy  of  every  country  so  to  measure  vessels  as 
to  lighten  the  tonnage  taxes  and  other  charges  payable  by  shipping  at  home  and  foreign  ports.  National 
measurement  rules  are  not  so  applied  as  to  determine  accurately  the  capacity  of  vessels  to  carry  freight  and 
passengers.  The  rules  enforced  by  the  Suez  Canal  Co.,  however,  are  framed  and  apphed  with  the  purpose  of 
ascertaining  the  earning  capacity  of  vessels,  and  thus  the  Suez  rules  afford  a  more  scientific  measure  of  the 
tonnage  of  vessels  than  do  the  national  rules  enforced  in  an}^  country. 

Net,  instead  of  gross,  tonnage  should  be  made  the  basis  of  Panama  tolls,  not  only  because  net  tonnage 
when  accurately  determined  is  the  true  measure  of  the  ship's  earning  capacity;  but  also  because,  if  gross 
tonnage  were  made  the  basis  of  canal  charges,  the  best  and  fastest  vessels  would  be  unfairly  discriminated 
against  in  comparison  with  the  slower  and  less  desirable  types  of  ships.  If  tolls  were  levied  upon  gross 
tonnage,  vessels  would  have  to  pay  charges  upon  the  spaces  occupied  by  machinery,  bunkers,  light  and  air 
wells,  crew  quarters,  and  other  nonrevenue-producing  parts  of  the  vessel.  Such  spaces  occupy  a  large  share 
of  the  capacity  of  high-powered  vessels,  which  would  be  at  a  disadvantage  in  the  matter  of  canal  tolls,  as 
compared  with  ships  having  low-powered  engines.  Moreover,  if  spaces  required  for  the  comfort  and  health 
of  the  crew  were  not  exempted  from  tolls  the  tendency  would  be  to  reduce  such  spaces  to  a  minimum  in  order 
to  increase  the  earning  capacity  of  the  vessel. 


152  PANAilA  CANAL  TRAFFIC  AND  TOLLS. 

A  practical  objection  to  adopting  gross  tonnage  as  the  basis  for  tolls  is  the  fact  that  no  canal  administration 
nor  any  country  now  makes  gross  tonnage  the  basis  of  tonnage  taxes  or  other  charges.  Moreover,  the  several 
national  rules  for  determining  gross  tonnage  are  not  uniform,  and  the  adoption  of  gross  tonnage  as  the  basis 
of  tolls  at  Panama  would  not  obviate  the  necessity  of  formulating  and  applying  a  new  set  of  measurement 
rules.  The  shipping  world  is  accustomed  to  levies  based  upon  net  tonnage,  and  it  would  hardly  be  desirable 
to  adopt  a  different  basis  at  Panama,  urdess  it  could  be  shown  that  commerce  would  thereby  be  materially 
benefited.  It  is  not  beUeved  that  any  such  advantage  to  commerce  can  result  from  the  adoption  of  gross  ton- 
nage as  the  basis  for  Panama  tolls. 

The  displacement  tonnage  of  a  vessel  is  subject  to  much  the  same  objection  that  gross  tonnage  is  as  a 
basis  for  the  levy  of  canal  tolls.  The  displacement  tonnage  of  a  ship  is  easily  determined,  and  charges 
based  upon  displacement  could  be  collected  with  minimum  administrative  difficulty;  but  the  charges  would 
bear  with  undue  severity  upon  the  fast  vessels  with  "fine"  lines.  A  freight  vessel  may  have  a  "coefficient 
of  fineness"  of  .8,  whereas  passenger  vessels  may  have  such  sharp  lines  as  to  have  a  "coefficient  of  fineness" 
of  .65.  The  full-shaped  freight  carrier  will  transport  a  maximum  load  with  a  minimum  draft.  A  passenger 
steamer  built  for  speed  has  a  large  displacement  in  comparison  with  the  cargo  carried  or  with  earnii:^  capacity. 
Thus,  in  the  case  of  freight  vessels,  different  types  of  construction  would  result  in  vessels  ha^'ing  different  cargo 
capacity  for  the  same  displacement.  Briefly  stated,  tolls  based  upon  displacement  would  discriminate  imfairly 
against  fast  ships  and  would  be  unjust  as  between  different  tvpes  of  freight  vessels. 

Railroad  companies  charge  freight  rates  based  upon  the  weight  of  the  commodities  transported;  but  such 
a  basis  for  canal  tolls  would  in  most  cases  be  neither  practicable  nor  desirable.  It  would  not  be  feasible  to 
charge  tolls  upon  the  weight  of  cargo  in  the  ship,  because  ordinarily  the  sliip's  manifest  does  not  indicate  the 
weight  of  cargo  in  the  vessel.  As  has  been  explained,  some  goods  are  shipped  by  weight,  othei-s  by  measure- 
ment, and  thus  a  special  calculation  would  be  necessary  in  the  case  of  most  vessels  to  determine  the  number 
of  weight  tons  of  freight  subject  to  tolls.  Calculations  to  determine  weight  tonnage  or  the  total  weight  and 
measurement  tonnage  would  be  expensive  to  make  and  might  delay  the  clearance  of  vessels  or  their  passage 
through  the  canal.  Moreover,  to  make  the  weight  of  cargo  the  basis  of  tolls  would  be  to  render  fraud  easy  to 
practice  and  hard  to  detect. 

If  the  vessel's  manifest  and  the  calculations  of  cargo  tonnage,  whether  weight  or  measurement,  made  by 
the  vessel  owners  were  accepted  by  the  canal  administration  without  careful  checking,  a  premium  would  be 
put  upon  dishonesty  and  sharp  dealmg.  It  would  be  necessary  for  the  canal  authorities  to  accept  the  ship's 
manifest  and  the  owner's  calculations  at  their  face  value,  because  it  would  be  practically  impossible  to  determine 
whether  a  ship  loaded  with  miscellaneous  cargo,  or  possibly  with  a  hundred  or  more  varieties  of  commodities, 
contained  the  articles  and  amounts  of  freight  stated  in  the  manifest.  The  Manchester  Canal  Co.  levies  charges 
not  only  upon  the  ship  but  also  upon  the  cargo;  but  that  is  possible  because  Manchester  is  a  termmal  port  at 
which  cargo  is  loaded  and  unloaded.  In  the  case  of  a  canal  like  the  one  at  Suez  or  at  Panama,  it  would  not  be 
practicable  to  make  freight  the  basis  of  transit  dues. 

A  conclusive  reason  against  the  adoption  of  the  weight  of  cargo  as  the  basis  of  canal  tolls  is  that  the  toUs 
would  bear  most  heavily  upon  vessels  loaded  with  cargoes  least  capable  of  paying  tolls.  Articles  of  least  value, 
such  as  coal,  nitrate,  and  lumber  are  heavier  than  commodities  of  high  value.  If  cargo  tonnage  were  made  the 
basis  of  tolls,  measurement  tonnage  as  well  as  weight  tons  would  need  to  be  counted  in  determinmg  the  number 
of  tons  upon  wliich  tolls  are  to  be  levied.  A  vessel  of  a  given  capacity  can  be  loaded  with  more  "tons"  of 
light  general  merchandise,  which  is  practically  always  sliipped  as  measurement  cargo  of  40  cubic  feet  per  ton. 
A  long  ton  of  coal  (2,240  pounds)  occupies  between  40  and  50  cubic  feet.  The  way  this  works  out  in  practice 
may  be  illustrated  by  reference  to  a  vessel  of  about  3,000  tons  net  register,  British  measurement,  which  can 
be  loaded  with  8,500  tons  of  deatl-weight  cargo  and  9,500  tons  of  measurement  cargo. 

A  possible  basis  upon  which  to  lev}'  Panama  tolls  would  be  the  dead-weight  tonnage  of  vessels.  The  difference 
between  the  displacement  tonnage  of  a  vessel  with  merely  its  crew,  supplies,  and  coal  on  board  and  the  displace- 
ment of  a  vessel  loaded  to  its  maximum  load  line  is  its  dead-weight  capacity;  and  the  dead-weight  tonnage  of 
any  particular  ship,  when  loaded  to  any  given  draft,  may  be  read  off  from  the  tonnage  scale  on  the  ship's  dis- 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  153 

placement  curve,  a  scale  that  is  to  be  found  on  every  vessel.  The  advantage  of  dead-weight  tonnage  as  a  basis 
of  tolls  is  its  ease  of  determination.  The  reason  why  it  should  not  be  made  the  basis  of  Panama  charges  is  that 
it  would  unfairly  discriminate  between  different  types  of  vessels  and  different  classes  of  cargo. 

The  result  of  making  dead-weight  tonnage  the  basis  of  toll  charges  would  be  the  opposite  of  the  result  of 
charging  tolls  upon  displacement.  The  dead-weight  tonnage  basis  would  discriminate  unjustly  against  the 
freight  vessel.  Fast  passenger  ships  built  on  "fine"  lines  have  large  earning  capacity  in  comparison  with  their 
dead-weight  tonnage.  They  would  have  less  tolls  to  pay  than  would  have  to  be  paid  by  smaller  slow-going 
freight  steamers.  The  charges  upon  the  two  ships  would  not  be  in  proportion  to  their  earning  capacity  or  their 
ability  to  pay. 

Tolls  based  upon  dead-weight  tonnage,  like  those  levied  upon  weight  of  cargo,  would  bear  most  heavily 
upon  the  vessels  carrying  low-grade  freight.  The  heavier  the  freight  per  unit  of  space  occupied  the  smaller  is 
the  number  of  tons  with  which  a  vessel  can  be  loaded,  the  only  exception  to  this  being  that  every  vessel  must 
carry  enough  heavy  cargo  or  ballast  in  the  bottom  of  the  hold  to  make  the  ship  steady.  Vessels  loaded  mainly 
with  measurement  cargo  have  a  maximum  number  of  tons  of  cargo  and  a  minimum  of  displacement  due  to 
weight,  whereas  vessels  loaded  with  coal  or  similar  commodities  have  maximum  displacement  for  a  minimum 
number  of  tons  of  freight.  Moreover,  the  freight  rates  paid  on  general  merchandise  carried  as  measurement 
cargo  are  higher  than  those  paid  on  low-grade  bulk  freight.  ToUs  based  upon  dead-weight  tonnage  would  thus 
discriminate  seriously  against  vessels  carrying  low-grade  traffic.  i 

The  reasons  why  net  tonnage  should  be  made  the  basis  of  the  toUs  charged  for  the  use  of  the  Panama 
Canal  may  be  summarized  as  follows : 

(1)  Net  tonnage,  scientifically  determined,  is  the  measure  of  a  ship's  earning  capacity  or  its  abUity  to  carry 
cargo  and  passengers.  Net  tonnage  does  not  discriminate  unfairly  as  between  different  types  of  ships  and  as 
among  different  classes  of  cargo. 

(2)  Owners  and  masters  of  vessels  are  accustomed  to  paying  tonnage  taxes,  port  dues,  and  canal  charges  on 
the  basis  of  net  tonnage.     It  is  a  basis  of  charges  that  is  practicable  and  is  acceptable  to  the  shipping  interests. 

(3)  The  adoption  of  net  tonnage  as  the  basis  of  Panama  toUs  will  not  cause  vessels  to  be  constructed  with 
a  view  to  minimizing  light  and  air  spaces  or  crew  accommodations.  The  charge  wiU  be  upon  the  ship's  earning 
capacity;  and  spaces  devoted  to  the  safety  and  comfort  of  passengers  and  crew  wiU,  if  the  rules  are  properly 
formulated,  be  exempted  from  toUs. 

(4)  The  collection  of  tolls  based  upon  net  tonnage  will  not  present  any  serious  administrative  difficulties. 
Vessels  intending  to  use  the  canal  can  readily  secure  certificates  showing  their  net  tonnage  as  determined 
by  the  rules  promulgated  hj  the  Panama  Canal  administration.  The  correctness  of  the  net  tonnage  shown  in 
the  certificate  can  readily  be  checked  up  at  the  canal.  The  possibility  of  fraud  will  be  reduced  to  a  minimum 
and  the  imposition  and  coUection  of  toUs  wiU  not  delay  the  passage  of  any  vessel  through  the  canal.  While 
net  toimage  is  not  so  easily  and  certainly  determinable  as  gross  tonnage,  displacement  or  dead-weight  tonnage, 
it  can  be  ascertained  without  serious  difficulty  and  is  to  be  preferred  to  gross  tonnage,  displacement,  or  dead- 
weight as  a  basis  of  toUs.     It  is  the  fairest  basis  upon  which  to  levy  canal  charges. 

The  earning  capacity  of  a  ship  being  the  space  available  for  the  accommodation  of  freight  and  passengers, 
the  rules  applied  in  the  measurement  of  vessels  should  be  such  as  to  determine  accurately  the  actual  space 
available  for  passengers  and  cargo.  The  tolls  paid  by  the  ship  should  be  based  upon  the  earning  capacity  thus 
determined.  Adherence  to  this  principle  will  cause  passenger  and  freight  vessels  to  pay  tolls  upon  the  same 
basis — that  is,  earning  capacity. 

The  practice  at  the  Suez  Canal  and  some  other  waterways  is  to  charge  toUs  both  upon  the  number  of  passen- 
gers carried  and  upon  the  net  tonnage  of  the  vessels.  This  practice  causes  the  space  occupied  by  passengers 
to  be  subject  to  two  charges,  one  based  upon  space  and  the  other  upon  the  number  of  passengers.  The  practice 
is  wrong  in  principle  and  causes  passenger  vessels  to  pay  unjustifiably  high  toUs.  It  is  recommended  that 
there  be  no  passenger  tolls  charged  at  Panama  and  that  aU  merchant  vessels  be  subject  to  transit  dues  levied 
upon  the  same  basis,  i.  e.,  net  toimage  so  determined  as  to  be  an  exact  expression  of  the  ship's  earning  capacity. 


154  PANAilA  CANAL  TRAFFIC   AND  TOLLS. 

The  Basis  of  Tolls  Upon  War  Vessels. 

War  vessels  differ  fundamentally  from  merchant  ships  both  in  use  and  in  construction.  A  warship  has 
no  earning  capacity  and  thus  can  have  no  net  tonnage.  Practically  all  the  space  ia  the  vessel  is  occupied  by 
machinery,  armament,  and  accommodations  for  the  crew. 

The  size  of  a  warship  is  indicated  by  its  displacement  tonnage,  and  this  is  the  only  measiu-ement  applied  in 
practice  to  naval  vessels.  The  Suez  Canal  Co.,  however,  requires  war  vessels,  as  well  as  merchant  vessels,  to 
pay  tolls  upon  net  tonnage.  By  a  complicated  and  laborious  process,  the  Suez  measurement  rides  are 
appUed  to  such  warships  as  may  pass  through  the  canal;  but  the  figures  thus  obtained  for  net  tonnage  are 
pm-ely  artificial  and  arbitrary.  The  requirement  of  the  Suez  Canal  Co.  that  naval  vessels  shall  pay  toUs  upon 
net  tonnage  is  not  defensible  in  theory  and  should  not  be  adopted  at  Panama. 

Naval  vessels  should  be  charged  tolls  on  the  basis  of  displacement  tonnage.  Every  warship  is  rated 
according  to  its  displacement  and  no  measurement  will  be  necessary"  for  the  purpose  of  levyuig  tolls.  Colliers, 
transports,  and  supply  and  hospital  ships  that  accompany  a  fleet  or  are  used  for  naval  purposes  should  be 
treated  as  merchant  ships  and  should  be  required  to  pay  tolls  upon  the  basis  of  net  tomiage,  so  measured  as  to 
express  accurately  the  earning  capacity  of  the  vessels.  When  applying  for  passage  through  the  canal,  such 
ships  should  be  required  to  present  the  same  certificate  of  measurement  that  merchant  vessels  are  compelled 
to  show. 


CHAPTER  X. 


COALING  FACILITIES  AND  COAL  COSTS  VIA  THE  PANAMA 
CANAL  AND  ALTERNATIVE  ROUTES. 


CHAPTER  X. 


COAIING  FACILITIES  AND  COAL  COSTS  VIA  THE    PANAMA  CANAL  AND  ALTERNATIVE  ROUTES. 

INTRODUCTION. 

The  Panama  Canal  will  reduce  the  expenses  of  ocean  transportation  by  shortening  the  length  of  routes 
and  by  reducing  the  time  required  for  voyages.  Theoretically,  the  tolls  charged  at  Panama  may  be  made 
equal  to  the  amount  vessels  save  by  using  the  canal.  For  most  of  the  commerce  passing  through  the  canal, 
the  tolls  levied  wiU  be  much  less  than  the  money  equivalent  of  the  services  rendered  by  the  canal;  but,  in  the 
case  of  the  trade  to  and  from  some  sections  of  the  world,  the  choice  of  the  Panama  route  wiU  depend  upon 
the  tolls  charged. 

The  two  factors  that  wiU  most  largely  influence  the  tonnage  of  traffic  through  the  canal  will  be  the  rate 
of  toUs  and  the  relative  costs  of  fuel  by  the  Panama  and  alternative  routes.  To  the  extent  that  coal  can  be 
obtained  more  cheaply  via  the  Panama  Canal  than  along  other  routes,  the  canal  will  be  assisted  both  in  competing 
for  traffic  free  to  move  by  more  than  one  route  and  in  iDuilding  up  the  trade  and  industries  of  regions  so  situated 
that  their  commerce  is  certain  to  pass  tlirough  the  Panama  Canal. 

The  amount  of  coal  annually  consumed  by  ocean  vessels  was  estimated,  in  1912,  by  the  Bureau  of  Statistics 
of  the  Department  of  Commerce  and  Labor,  to  be  75,000,000  tons,  valued  at  over  $250,000,000.  Some  naval 
coaling  stations  are  maintained  by  governments  for  niUitar}^  purposes,  but  most  bunker  coal  is  sold  by  merchants 
or  companies.  Some  of  these  coal  companies  operate  depots  at  numerous  stations  in  many  parts  of  the  world. 
In  a  few  instances,  steamship  lines  provide  coal  both  for  their  owti  use  and  for  public  sale,  as  is  done  by  the 
Pacific  Mail  Steamslup  Co.,  at  Acapulco,  Mexico.  The  Panama  Railroad  Co.,  the  capital  stock  of  wliich  is 
owned  by  the  United  States  Government,  sells  bunker  coal  at  Colon  and  Panama,  but  not  in  large  quantities. 

Regidar  coaling  stations  have  been  established  along  all  ocean  routes,  the  location  of  the  stations'  being 
indicated  on  plate  12  at  the  end  of  this  volume.  Along  the  older  trade  routes  the  stations  are  frequent,  while  on 
the  newer  ocean  highways  the  stations  are  farther  apart.  At  the  larger  stations  there  are  often  several  dealers, 
each  having  depots,  wharves,  lighters,  and  other  loading  facihties.  Most  steamship  companies,  even  the  largest 
ones,  do  not  supply  themselves  with  coal  but  make  an  annual  contract  with  some  one  dealer  having  coal  at 
convenient  stations  located  on  the  routes  over  which  the  company's  vessels  are  operated.  The  coal  dealers 
pubhsh  annually  the  prices  at  which  they  are  willing  to  contract  to  supply  all  coal  needed  by  pmchasers.  The 
contract  prices  are  usually  somewhat  below  the  current  rates  at  which  coal  may  be  bought  by  the  occasional 
buyer;  and  the  annual  agreements  usually  provide  that  "should  the  general  ciurent  price  for  equal  quality 
coal  be  lower  at  the  time  of  any  coaling,  steamer  is  to  receive  the  benefit  of  such  lower  price."  The  contracts, 
moreover,  are  usually  exclusive,  in  that  the  coal  merchants  agree  to  furnish  all  the  coal  needed  and  the  vessel 
owners  bind  themselves  to  make  all  their  purchases  from  the  dealers  with  whom  they  are  under  contract. 

The  cost  of  coal  and  the  price  at  which  it  is  sold  at  any  particular  station  depend,  first  of  aU,  upon  the 
nearness  or  remoteness  of  the  mines  from  which  the  supply  is  obtained.  The  stations  along  the  Suez  route 
obtain  coal  mainly  from  Wales,  England,  and  Scotland,  Welsh  coal  being  most  largely  sold.  The  prices  are 
relatively  high  at  the  Suez  Canal,  and  higher  south  and  east  of  the  canal.  The  coal  prices  along  the  Suez  route 
do  not  rise  strictly  with  the  increase  in  distance  from  Great  Britain,  but  the  advance  in  cost  is  roughly  in 
accordance  with  distance  until  stations  are  reached  at  which  Japanese  and  East  Indian  coal  can  successfully 
compete  with  Cardiff  or  Durham  coals.  At  Colombo,  Welsh  coal  must  compete  with  that  from  India  and 
Austraha;  at  Sabang  with  Indian,  Sumatran,  and  Japanese  coal;  and  at  Singapore  with  Japanese,  Indian, 
AustraUan,  Labuan,  and  Natal  coal.  Beyond  Colombo  and  Singapore,  Welsh  coal  is  ununportant  and  Japanese 
and  Chinese  coals  predominate.  In  Australia  native  Newcastle  and  Southern  Australian  coals  supply  the 
demand;  ui  New  Zealand  both  native  and  Austrahan  (Newcastle)  coals  are  sold;  in  South  Africa  the  Natal 
mines  are  the  source  of  supply;  on  the  lower  west  coast  of  South  America  coal  is  secured  at  Coronel;  on  the 
Pacific  coast  of  North  America,  British  Columbia  and  Washington  coals  are  used ;  and  at  stations  in  the  West 
Indies  and  on  the  eastern  seaboard  of  the  United  States  the  excellent  coal  from  Pennsylvania,  West  Virginia, 
and  Alabama  is  obtainable. 

The  ocean  freight  rates  determine  the  distance  coal  can  be  transported  to  supply  coaling  stations.  At 
some  stations  coal  from  distant  sources  competes  with  that  from  relatively  near-by  points.     At  Valparaiso, 

I  Plate  12  gives  the  name  and  location  of  some  stations  at  which  only  oil  is  sold. 


158 


PANAMA  CAN.AL  TKAFFIC  AND  TOLLS. 


Iquique,  Antofagasta,  and  other  points  on  the  west  coast  of  South  America  some  distance  from  Coronel,  the 
supply  is  chiefly  American,  Welsh,  and  Australian,  because  of  low  freights  on  vessels  bound  for  Chile  to  secure 
cargoes  of  nitrate.  At  Montevideo,  Bahia  Blanca,  and  other  points  on  the  east  coast  of  South  America  south 
of  Brazil  the  supply  comes  from  Wales  and  England,  because  the  outbound  freights  from  Great  Britain  to  that 
section  are  relatively  low. 

The  relative  prices  at  which  different  grades  of  coal  are  sold  at  any  particular  station  are  determined  by  the 
steaming  quahtier  of  the  coal ;  and  the  liigher  prices  paid  for  best  grades  sometimes  enables  such  coal  as  that  from 
Wales  to  be  sold  at  stations  remote  fi'om  Great  Britain  in  competition  with  inferior  coals  obtained  from  near-by 
sources.  The  steaming  value  of  different  American  coals  is  shown  by  the  specifications  under  winch  the  United 
States  Government  purchases  coal  at  various  points.  The  specifications  provide,  among  other  items,  for  an 
agreed  number  of  British  thermal  units  per  pound  of  coal.  Table  I  shows  the  number  of  British  thermal 
units  of  different  run-of-mine  bituminous  coals  purchased  by  the  United  States  Government  during  1908,  1909, 
and  1910. 

Table  I.— CALORIFIC  VALUE  OF  BITUMINOUS  COAL  PURCHASED  BY  THE  UNITED  STATES,  1908-1910.' 


Commercial  name  of  coal. 


Where  mined. 


British  thermal  units. 


As  received.  Dry  coal. 


Pratt  Lump 

Belle  Ellen 

Blocton  Cahaba  red  ash  lump. 

Georges  Creek 

Acme 

Sugar  Loaf 


.do. 


do 

Maryland 

Pennsylvania  (Clearfield) . 
Pennsylvania  (Cambria) . . 
.\tlantic  Quemahoning {  Pennsylvania  (Somerset). . 


Youghiogheny,  screened. 
Pocahontas 


Nevr  River 
Kanawha. 


Pennsylvania  (Westmoreland). 

Virginia 

West  Virginia 


.do. 


,844-14,399 

13,318 

14,380 

,802-14,289 

,861-14,140 

:,  237-14, 589 

13,834 

12,909 

14,479 

,135-14,734 

,183-14,823 

,422-13,858 


14,030-14,583 

13,615 

14,658 

14,213-14,541 

14,132-14,477 

14,518-14,813 

14,233 

13,510 

14,939 

14,478-15,157 

14,635-15,160 

13,857-14,304 


1  Bureau  of  Mines,  Government  Coal  Purchases  under  Specifications,  Bulletin  41,  pp.  33-30.    Government  Printing  Office,  Washington,  1912. 

The  United  States  Bureau  of  Mines  has  tested  the  steaming  value  of  a  large  number  of  coals  in  different 
sections  of  the  coimtry.  Table  II  shows  the  minimum  and  maximum  calorific  values  of  the  coals  tested  by 
the  bureau  in  such  districts  as  lie  adjacent  to  tidewater  and  supply  coal  for  bunker  purposes.  The  table  also 
gives  the  results  of  the  tests  of  some  Argentine  and  BrazU  coals. 

Table  II.— CALORIFIC  VALUE,  IN  BRITISH  THERMAL  UNITS,  OF  COAL  PER  POUND.' 


Designation  of  coal. 


By  oxygen  calorimeter. 

By  analysis. 

Dry  fuel. 

Combustible. 

Dry  fuel. 

Combustible. 

11,806-14,449 

14,462-15,634 

11,648-14,270 

14,208-15,556 

10,082 

11,003 

9,686 

10,571 

12,865 

15,647 

12,433 

15,120 

12,607-15,115 

13,680-14,717 

15,676-15,843 

13,514-14,798 

15,491-15,883 

13,163-14,886 

15,198-15,900 

13,212-14,737 

14,847-15,812 

11,639 

14,001 

11,768 

14,156 

12,472-14,936 

14,977-15,691 

12.461-14,774 

14,944-15,544 

11,772-13,243 

13,748-14,940 

11,614-12,962 

13,563-14,663 

12,838-15,235 

15,126-16,266 

12,922-15,305 

15,016-16,341 

5,933-  8,298 

12,873-13,614 

5,918-8,458 

12,840-13,982 

9,830-10,028 

13,622-13,839 

9,847-10,044 

13,646-13,861 

Alabama 

Florida 

Georgia , 

Jamestown , 

Maryland , 

Pennsylvania 

Rhode  Island 

Virginia 

Washington , 

West  Virginia 

Argentine  Republic. 
Brazil 


'  Bureau  of  Mines,  Steaming  Tests  of  Coals,  BuUetin  23,  pp.  100-115.    Government  Printing  Office,  Washington,  1912. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


159 


West  Virginia  coal,  shipped  from  Norfolk  and  Newport  News,  is  sold  at  Colon,  Panama,  St. Lucia,  St.  Thomas, 
and  also  ia  small  amounts  on  the  west  coast  of  South  America  above  Coronel.  It  is  generally  conceded  that 
the  steaming  value  of  this  Pocahontas  and  New  River  coal  is  about  5  per  cent  less  than  that  of  the  Welsh  product, 
and  this  difference  is  to  be  taken  into  account  in  comparing  prices  and  costs.  No  other  standard  coals  sold 
on  a  large  scale  at  ocean  coaling  stations  are  equal  in  steaming  value  to  American  or  Welsh  coals. 

The  influence  of  the  quality  of  coal  upon  prices  is  illustrated  by  the  prices  prevailing  at  Singapore  for  the 
several  varieties  sold  at  that  important  station.  The  1912  contract  price  for  Welsh  coal  is  35s.  (f.  o.  b.) ; 
for  AustraUan,  24s.;  Japan  best,  22s.  6d.;  Deshergur  (Indian),  21s.  6d.;  and  for  Bengal  coal,  19s.  6d.  The 
price  of  Welsh  coal  is  somewhat  higher  than  its  steaming  value  justifies,  because  warships  insist  upon  Welsh 
coal,  whatever  the  price  may  be.     The  demand  is  not  a  purely  commercial  one. 

The  efficiency  of  several  kinds  of  coal  is  roughly  indicated  by  a  statement  made  by  the  captain  of  a  vessel 
who  reports  that  his  ship's  dailj'  coal  consumption  is  22  tons  of  best  No.  1  Welsh,  25  tons  of  Tyne,  29  to  30  of 
Indian  or  Japanese,  2-1  to  25  of  Newcastle  (AustraHan),  30  of  Chilean,  24  to  25  of  New  River  (West  Virginian), 
and  26  of  Alabama  coal.'  Another  vessel  was  reported  to  have  a  daily  consumption  of  25  tons  of  best  Welsh 
as  compared  with  26i  tons  of  Pocahontas,  26  Welsh  run-of-mine,  28  of  Lancashire  or  Tyne,  and  30  of  Indian 
or  Japanese  coal.  Pocahontas  coal  is  particularly  effective  in  vessels  with  forced  draft,  in  which  class  of  vessels 
its  steam  value  is  about  equal  to  that  of  Welsh  coal. 

The  prices  of  representative  coals  at  various  stations  during  1912  and  1911  are  given  in  Table  III. 

Table  HI.— CONTRACT  PRICES  OF  COAL  IN  1912  AND  1911  AT  SELECTED  STATIONS  IN  DIFFERENT  PARTS  OF 

THE  WORLD. 


Price  per  ton. 


1912 


1911 


Southampton  - 

Havre3 

Gibraltar  3 

Algiers 

Port  Said 


Colombo. 


Moji. 


Yokohama. 


Durban  (Natal) 

Sydney  (New  South  Wales)  2 

Melbourne  - 

Coronel,  Chile 

Valparaiso  2 

Montevideo 

St.  Lucia 

Newport  News  and  Norfolk 

New  York 

Comax  or  Union.  British  Columbia. 
Seattle 


/Good  Japan  lump 

\Good  Japan  run-of-mlne. . 


Natal 

Southern  screened 

Newcastle  and  Southern . 

Chilean 

Welsh  (Admiralty) 


.do. 


New  River  and  Pocahontas. 


.do. 


Morrisdale  and  Clearfield. . 

Best  Comax  lump 

Carbon  Hill  steam 


2os.  3d 

21s.  to  24s 

22s.  to  21s 

22s.  6d 

25s.  6d.  to  26s. 
34s 


12s.  6d. 
ISs.  6d. 


12s.  to  14s.  6d. 
16s 


19s.  6d. 
24s.  6d. 
61s.  9d. 
43s 


S4.15. 


23s.  lOd 

19s.  to  21s 

19s.  6d.  to  20s. 
20s 


3as.6d 

17s.  3d.  to  21s.  6d. 
21s.  3d 


20s 

18s.  6d 

12s.  to  14s. 

16s.  3d 


20s. 


38s.  6d 

22s.  6d.  to  23s  . 


$4.25toS4.4S. 


F.  a.  s. 
Trimmed. 
F.  a.  s. 
Trimmed. 
F.  0.  b. 

Do. 
Trimmed. 
F.  0.  b. 
F.  a.  s. 
Trimmed. 

Do. 


1  See  statement  of  Maj.  E.  T.  Wilson,  chief  subsistence  oflicer.  Isthmian  Canal  Commission.    Hearings  before  the  Committee  on  Interstate  and  Foreign  Commerce, 
1912,  vol.  1,  p.  ISl. 

2  Prices  paid  by  United  States  Navy. 

3  Low  price,  "  Tliro  and  thro  " ;  high  price  ' '  large." 


160 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


The  prices  charged  for  Welsh  coal,  in  1912,  were  from  2s.  to  10s.  above  1911  prices,  the  usual  increase 
being  from  2s.  to  4s.  The  cost  of  American  coals  advanced  but  slightly  and  in  some  cases  the  contract  prices 
were  the  same  each  year.  At  Sydney,  New  South  Wales,  Melbourne,  Seattle,  and  Yokohama,  where  Welsh  coal 
is  not  largely  sold,  there  was  a  shght  decline  in  prices.  Japanese  coal  sold  for  about  the  same  in  1912  as 
in  1911.  The  rise  in  the  price  of  Welsh  coal  at  all  coaling  stations  was  due  chiefly  to  the  increased  cost  of  coal 
at  Cardiff,  caused  by  the  introduction  of  the  eight-hom-  day  at  the  Welsh  mines.  Ocean  freight  rates  were 
also  higher  in  1912  than  in  1911,  and  this  especially  affected  the  prices  of  coal  sold,  as  Welsh  coal  is,  at  stations 
remote  from  the  sources  of  supply. 

Contracts  for  the  sale  of  coal  stipulate  whether  the  coal  is  to  be  delivered  "f.  o.  b."  (free  on  board) ;  "f.  a.  s." 
(free  alongside  ship);  or  "trimmed."  Prices,  likewise,  depend  upon  whether  the  coal  is  "screened"  or  "run 
of  mine."  Coal  sold  as  "Welsh"  or  "Cardiff"  coal  without  fm-ther  designation,  at  Port  Said,  for  instance,  has 
been  run  over  one  screen.  Double-screened  Welsh  coal  is  termed  "Admiralty  Welsh,"  and  rim-of-mine  Welsh 
or  Durham  coal  is  termed  "through  and  through." 

The  following  discussion  considers  coaling  facilities  and  coal  prices  along  (1)  the  Suez  route;  (2)  the  South 
African  or  Cape  of  Good  Hope  route;  (3)  the  South  American  or  Magellan  route;  and  (4)  the  Panama  Canal  route. 

I.  Cost  and  Supply  of  Coal  at  Stations  on  the  Routes  from  Eastern  United  States  and  Western 
Europe  to  the  Far  East  via  the  Suez  Canal  Route. 

The  amount  paid  for  coal  by  two  freight  vessels  that  made  round-trip  voyages,  durmg  1911,  from  New 
York  through  the  Suez  Canal — one  ship  to  China  and  Japan  and  the  other  to  the  Philippines — are  shown  in 
the  following  statement  prepared  by  a  company  operating  a  relatively  large  fleet.  The  vessels  are  steamers 
of  the  shelter-deck  type,  each  of  2,927  tons  net  register,  British  measiu-ement,  and  4,640  tons  gross  register. 
Each  vessel  can  carry  8,500  tons  deadweight  of  cargo,  or  9,500  tons  measiuement  cargo  after  deducting  "space 
occupied  by  coal  and  20  per  cent  for  broken  stowage."  The  vessels  were  operated  at  lOJ  knots  speed,  and  each 
had  an  average  coal  consumption  of  38  tons  per  day.  The  number  of  tons  of  coal  taken  at  each  point  and  the 
contract  price  of  coal,  trimmed  into  bunkers,  at  the  different  stations  were  as  follows: 

STEAMER  A,  NEW  YORK  TO  JAPAN  AND  RETURN. 


Sailed  from  New  York  with 

Replenished  at  Algiers  with 

Replenished  at  Sabang  with 

Replenished  at  Moji  with 

(Sufficient  to  take  steamer  to  Yokohama  and  back  to  Moji,  where  she  commenced  replenishing  for  homeward  voyage.) 

Replenished  at  Moji  with 

Replenished  at  Sabang  with 

Replenished  at  Port  Said  with 

Replenished  at  Algiers  with 


PANAJVIA  CANAL  TRAFFIC   AND  TOLLS. 
STEAMER  B,  NEW  YORK  TO  THE  PHILIPPINES  AND  RETURN. 


161 


SaUed  from  New  York  with 

Replenished  at  Algiers  with 

Replenished  at  Sabang  with 

(Sufficient  to  take  steamer  to  Philippines  and  back  to  Sabang,  where  she  commenced  replenishing  for  the  homeward  voyage.) 

Heplenlshed  at  Sabang  with 

Replenished  at  Port  Said  with 

Replenished  at  Algiers  with 


$3.25 
4.85 
5.00 

5.00 
5.25 

4.85 


It  will  be  noted  that  neither  steamer  took  coal  at  the  Suez  Canal  on  the  outward  voyage.  Steamer  A 
purchased  275  tons  of  coal  at  Port  Said  for  $5.50  per  ton,  while  steamer  B  paid  $5.25  per  ton  for  the  same 
quantity.  On  the  outward  trip  the  maximum  quantity  of  coal  was  bought  at  Algiers,  where  enough  Welsh 
or  English  coal  was  secured  to  take  the  vessels  to  Sabang  on  the  Straits  of  Malacca. 

Another  company  that  operates  a  large  fleet  between  New  York  and  the  Orient  states  that  "it  is  usual  for 
our  steamers  sailing  via  Suez  to  take  suflTicient  coal  here  (New  York)  to  reach  the  canal,  say  700  tons,  although 
they  sometimes  bunker  en  route  at  Gibraltar,  Oran,  Algiers,  or  Malta.  At  the  canal  the}"  take  on  sufficient  coal 
to  enable  them  to  reach  Singapore,  or  the  first  port  at  which  they  are  calling  that  they  can  get  Japanese  coal. 
On  the  homeward  trip  they  coal  in  Japan  for  Port  Said  and  again  coal  at  the  canal  and  at  one  of  the  western 
Mediterranean  depots  for  New  York." 

Contract  prices  for  coal  at  New  York  are  not  uniform  for  all  buyers.  One  of  the  companies  mentioned 
above  paid  $3.25  per  ton  for  750  tons  trimmed  into  bunkers,  while  another  company  paid  $3.60.  A  coal 
merchant  doing  a  large  business  quotes  contract  prices  on  Morrisdale  and  Cunard  coal  for  1912  at  $3  per  ton 
f.  a.  s.  at  New  York,  and  for  $3  trimmed  at  Philadelphia  and  Baltimore.  At  Boston  this  merchant  offers  New 
River  and  Pocahontas  coal,  over  ship's  rail,  at  $4.25  and  Pennsylvania  coal  at  $4,  with  15  cents  extra  for 
trimming.  Another  merchant  quotes  1912  prices  of  $3  f.  a.  s.  for  Clearfield  coal  at  New  York,  of  $2.95  trimmed 
at  Philadelphia,  and  of  S2.90  trimmed  at  Baltimore.  He  sells  Pocahontas  coal  for  $3  f.  o.  b.  at  Norfolk  and 
New  River  coal  for  $3  f.  o.  b.  at  Newport  News. 

An  European  coal  dealer  quotes  1912  contract  prices  for  Westphalian  coal  of  16s.  3d.  to  16s.  9d.  f.  o.  b. 
Bremen.  At  Hamburg  he  offers  North  Country  and  Westphalian  coal  at  15s.  trimmed  and  Durham  coal  at 
15s.  6d.  He  sells  Westphalian  coal  at  Antwerp  for  13s.  6d.  trimmed,  and  Welsh  coal  at  Havre  for  from  24s. 
for  "large"  to  21s.  for  "through  and  through"  trimmed.  The  1912  prices  for  the  best  Welsh  coal  at  Cardiff 
is  17s.  6d.  trimmed. 

The  first  of  the  large  coftling  stations  passed  by  a  vessel  from  the  United  States  or  western  Europe  destined 
for  the  Suez  Canal  is  Gibraltar,  and  while  many  vessels  take  on  a  sufficient  suppl}"  at  their  port  of  origia  to 
carry  them  thi-ough  to  Port  Said,  some  vessels  replenish  their  supply  at  Gibraltar,  where  four  dealers  carry, 
stored  in  hulks,  an  average  supph'  of  about  15,000  tons  of  Welsh  and  3,000  tons  of  Newcastle  coal.  1912 
contract  prices  for  the  former  are  from  22s.  to  24s.  and  for  the  latter  21s.  The  ships  are  coaled  either  alongside 
the  hulks  or  from  lighters,  for  which  an  additional  charge  of  60  cents  per  ton  is  made. 

Coal  may  be  obtained  en  route  from  the  United  States  to  Gibraltar  at  St.  Michaels,  Azores,  where  two 
dealers  keep  in  stock  about  10,000  tons  of  Welsh  coal,  which  they  deliver  to  steamers  from  25-ton  lighters. 
The  contract  price  at  the  Azores  in  1911  was  26s.  6d.,  and  the  1912  charge  is  31s.  As  these  rates  are  higher 
than  those  prevailing  at  Gibraltar  and  various  other  Mediterranean  stations,  most  vessels  leave  the  United  States 
with  a  sufficient  supply  of  coal  to  carry  them  to  some  Mediterranean  station  or  to  the  Suez  Canal. 

At  Oran,  in  Algeria,  four  dealers  keep  on  hand  an  average  supply  of  about  3,900  tons  of  Welsh  coal,  8,000 
of  Scotch  and  English  coal,  and  2,500  of  Welsh  patent  fuel  briquets,  which  are  manufactured  at  Mers-et-Kebir. 
The  coal  is  loaded  from  lighters,  and  from  1,200  to  1,500  tons  are  always  kept  on  lighters  for  immediate  deHvery. 
One  of  the  dealers  quotes  1912  contract  prices  for  Durham  coal  at  21s.,  and  another  at  19s.  6d.  f.  o.  b. 


162  PANAJyiA  CANAL  TRAFFIC  AND   TOLLS. 

Algiers  is  a  large  coaling  station,  with  a  plentiful  supply.  The  average  quantity  held  in  stock  by  the  five 
dealers  of  the  port  is  20,000  tons  of  Welsh  coal,  5,000  tons  of  Newcastle  coal,  and  5,000  tons  of  briquets.  The 
general  contract  price  of  Welsh  coal  in  1911  was  20s.,  and  in  1912  22s.  6d.  The  contract  price  of  Durham  coal 
in  1912  was  20s. 

At  Malta  several  dealers  sell  coal  to  steamers,  and  keep  on  hand  an  average  supply  of  about  70,000  tons, 
consisting  mainly  of  Welsh  coal.  Smaller  amounts  of  Newcastle  and  Scotch  coal  are  also  sold.  About  1,000 
tons  of  briquet  coal  is  usually  carried.  Loading  is  effected  rapidly,  either  at  the  wharf  or  from  lighters.  The 
contract  prices  of  1912  are  the  same  as  at  Gibraltar. 

At  Port  Said  several  large  coal  companies  have  depots,  their  combined  sales  amounting  annually  to  about 
1,250,000  tons.  In  1910,  1,251,800  tons  of  Welsh  coal  were  shipped  to  Port  Said  from  South  Wales  and  Mon- 
mouthshire Port.  The  contract  price  quoted  by  one  of  the  dealers  in  1911  was  22s.  for  Welsh  coal  f.  o.  b.,  but 
one  of  the  navigation  companies  above  mentioned  purchased  Welsh  coal  for  21s.  and  Durham  coal  for  17s.  9d. 
The  contract  prices  of  1912,  as  first  announced  by  several  of  the  dealers,  was  26s.  f.  o.  b.  for  Welsh  coal,  and 
22s.  6d.  for  Durham  coal;  but  later  notice  was  given  by  the  Suez  Canal  Co.  that  the  dealers  had  agreed  upon  a 
contract  renewal  price  of  25s.  6d.  for  Welsh  coal.     Vessels  are  coaled  from  lighters  of  50  to  300  tons  burden. 

At  Suez,  the  Red  Sea  terminus  of  the  Suez  Canal,  there  is  a  large  coal  depot,  at  which  five  dealers  sell 
coal,  chiefly  Welsh.  The  cost  is  liigher  than  at  Port  Said,  the  1912  contract  price  offered  by  one  of  the 
dealers  being  36s.  per  ton.  Vessels  usually  purchase  most  of  their  coal  at  Port  Said.  As  at  Port  Said,  vessels 
are  coaled  at  Suez  from  lighters  of  from  50  to  300  tons  capacity. 

Vessels  destined  to  the  Far  East  usually  take  on  a  sufhcient  supply  of  coal  at  Port  Said  or  Suez  to  carry 
them  as  far  as  Singapore;  but  some  sliips  coal  at  Perim,  Aden,  or  Colombo.  At  Perim  Welsh  coal  is  sold  at 
fluctuating  current  prices.  At  Aden  four  dealers  maintain  a  large  stock  of  Welsh  coal,  the  price  of  which  in 
1911  was  31s.  6d.,  and  in  1912,  34s.,  delivered  to  vessels  from  100-ton  lighters.  Colombo  is  a  large  coaling 
station,  whose  various  dealers  handle  several  kinds  of  coals.  Welsh  coal  competes  mth  the  lower-priced 
Australian  and  Indian  coals  of  inferior  steaming  value.  Tlie  average  supply  maintained  at  Colombo  includes 
25,000  tons  of  Welsh  coal,  20,000  tons  of  Bengal,  and  3,000  tons  of  AustraUan.  A  small  amount  of  Natal 
coal  is  sold,  and  there  is  a  supply  of  about  4,000  tons  of  fuel  oU.  Vessels  may  take  coal  either  from  docks 
or  from  lighters.  The  contract  prices  in  1912  are  34s.  for  Welsh  coal,  21s.  6d.  for  Bengal,  and  25s.  6d.  for 
Natal.  Contract  prices  in  1911  were  30s.  6d.  for  Welsh,  24s.  3d.  for  Natal,  and  from  17s.  3d.  to  21s.  6d.  for 
Bengal  coal. 

Tlie  average  supply  at  Sabang,  in  the  Malacca  Straits,  includes  about  18,000  tons  of  Bengal  coal,  10,000 
tons  of  native  Sumatra  coal,  5,000  tons  of  Japanese  coal,  and  but  2,500  tons  of  Welsh  coal.  Here,  as  at  Colomba 
and  Singapore,  Welsh  coal  competes  with  coals  from  a  less  distant  source.  The  price  paid  by  the  vessels 
whose  fuel  costs  are  given  above  for  the  round-trip  voyages  from  New  York  to  the  Philippines  and  Japan  in 
1911  was  $5.25 — 21s.  6d. — for  eastern  coal. 

At  Singapore,  wliich  is  a  much-frequented  coaling  station  for  tlirough  vessels,  over  100,000  tons  of  coal 
are  usually  available.  Welsh,  Indian,  Australian,  Natal,  Japanese,  and  Labuan'  coals  are  sold,  there  being 
10  dealers  in  coal  and  1  in  fuel  oil.  Vessels  are  coaled  from  wharves  and  lighters.  The  1912  contract  prices 
are:  Welsh,  35s.;  AustraUan,  24s.  to  25s.;  Japanese,  22s.  6d. ;  and  Bengal,  21s.  6d.  to  19s.  6d. 

On  voyages  to  Japan  it  is  customary  to  take  on  a  sufficient  supply  at  Sabang  or  Singapore  to  carry  the  vessel 
to  one  of  the  Japanese  ports.  If  the  ship  is  bound  forChina,  enough  fuel  is  taken  to  reach  the  Chinese  destination, 
where  the  bunkers  are  replenished  for  the  return  voyage.  Beyond  Singapore,  British  coal  is  of  shght  importance, 
for  its  price  makes  it  available  only  to  war  vessels.  At  various  Japanese  ports,  certain  quantities  of  Welsh  coal 
are  kept  on  hand,  but  the  supply  used  by  freight  steamere  is  almost  entirely  Japanese.  The  1912  contract 
prices  for  "Japan  best"  coal  (screened)  at  Nagasaki  is  15s.  (trimmed);  Karatsu,  14s.  6d;  Kobe,  18s.  6d;  and 
Yokohama,  19s.  6d.  At  Moji,  the  price  for  "Japan  best"  is  14s.  6d.,  and  for  "Moji  good,"  12s.  9d.  The  prices 
for  unscreened  coal  in  each  case  are  about  Is.  6d.  less  than  the  prices  here  given. 

The  largest  coaling  station  in  southern  China  is  Hongkong,  where  about  30,000  tons  of  Japanese  coal, 
8,000  tons  of  Welsh,  6,000  tons  of  AustraUan,  and  smaUer  quantities  of  Labuan  and  Indo-CMna  coals  and  5,000 
tons  of  fuel  oil  are  kept  on  hand.  The  coaling  is  done  from  fighters.  The  1912  contract  price  announced  by 
one  of  the  large  dealers  is  19s.  9d.  for  "Japan  best;"  another  dealer  quotes  19s.  3d.  The  largest  station  in 
northern  China  is  Shanghai,  where  about  80,000  tons  of  Japanese  coal,  15,000  of  Kaiping  (China)  coal,  5,000  of 
AustraUan,  1,000  of  Shantung  (China),  5,000  of  Hongay  (China),  and  20,000  of  Welsh  coal,  and  2,000  tons  of 


PANA3.IA  CANAL  TRAFFIC  AND  TOLLS.  163 

fuel  oil  are  available.  One  dealer  quotes  1912  contract  prices  for  "Japan  best"  coal  at  19s.  3d.,  and  it  is  chiefly 
Japanese  coal  that  merchant  vessels  use,  the  Welsh  coal  being  used  bj'  war  vessels  and  by  some  of  the  faster 
passenger  steamers.     Kaiping  coal  is  sold  at  from  12s.  6d.  to  15s.  per  ton  trimmed. 

Steamers  bound  for  the  Philippines  usually  take  on  a  sufficient  supply  at  Colombo,  Sabang,  or  Singapore 
to  bring  them  back  from  Manila  to  the  coaling  station.  Vessels  can,  however,  obtain  at  Manila  a  supply  of 
Pocahontas,  Cumberland,  Austrahan,  or  Japanese  coal.  Unscreened  "Japan  best"  coal  is  sold  under  1912 
contracts  at  Manila  for  20s.  6d.  to  22s.  6d.;  Austrahan  coal  at  22s.  6d.  to  23s.  6d.;  and  Pocahontas  and 
Cumberland  coal  at  somewhat  liigher  prices. 

The  foregoing  details  show  that  vessels  using  the  Suez  route  to  and  from  the  Far  East  have  ample  coaling 
facilities.  As  is  shown  in  Plate  12,  there  are  numerous  coaling  stations  of  the  first  rank  and  many  others 
of  less  importance.  Xo  average  price  prevails  for  stations  over  a  wide  area,  because  the  freight  rates  on 
coal  vary,  and  there  are  many  varieties  of  coal,  from  different  sources  of  production,  sold  in  competition  with 
each  other.  British  coal  is  largely  used  east  bound  as  far  as  Singapore,  but  beyond  that  point  Japanese, 
Indian,  Chinese,  and  Austrahan  coal  is  mainly  used  by  merchant  steamers.  The  total  exports  of  coal  from 
South  Wales  and  Monmouthshire  Port  to  the  leading  stations  on  the  Suez  route  in  1910  were  as  follows:  Algiers, 
507,488  tons;  Oran,  135,382;  St.  Michaels,  21,537;  Madeira,  135,123;  Port  Said,  1,251,800;  Suez,  28,507;  Aden, 
143,620;  Colombo,  306,408;  Singapore,  9,377;  Sabang,  4,471;  Hongkong,  28,609;  and  Shanghai,  16,190. 
The  shipments  to  points  beyond  Singapore  are  small,  for  Welsh  coal,  even  at  Singapore,  Colombo,  and  Sabang, 
is  Uttle  used  except  b}"  war  vessels. 

II.  Coal  Supply  and  Costs  at  Stations  along  the  Routes  from  Eastern  United  States  and  Western 
Europe  to  Australia,  Xew  Zealand,  axd  African  Ports  via  the  Cape  of  Good  Hope  Route. 

Vessels  from  the  eastern  United  States  and  from  Europe  to  Australia  and  Xew  Zealand  choose  the  Suez, 
Magellan,  or  Cape  of  Good  Hope  routes.  Those  taking  the  Suez  route  may  either  take  on  enough  coal  at  Port 
Said,  Suez,  or  Aden  to  last  until  an  Austrahan  port  and  Australian  coal  are  reached,  or  a  smaller  supply  may 
be  purchased  at  the  Suez  Canal  or  at  Aden,  and  the  bunkers  be  refdled  at  one  of  the  stations  in  the  Indian  Ocean. 
Vessels  operated  from  Xew  York  to  AustraUa  via  the  Cape  of  Good  Hope  are  said  by  a  large  X"ew  York  naviga- 
tion company  to  coal  as  follows:  "The  Australian  steamers  use  the  Capo  of  Good  Hope  route,  and  sometimes, 
but  very  rarely,  coal  first  at  St.  Vincent.  Usually  they  take  sufficient  coal  at  X*ew  York  to  enable  them  to 
reach  Durban  or  Cape  Town.  There  they  coal  for  Austraha,  where  native  coal  is  again  obtainable."  Ships 
bound  from  the  United  States  and  Europe  to  Australia  via  the  Cape  no  longer  coal  at  St.  Vincent  as  generally 
as  they  did  before  the  native  coal  was  mined  on  a  large  scale  in  X^^atal.  The  price  of  coal  is  higher  at 
St.  Vincent  than  at  European  or  American  ports,  while  native  coal  available  at  Durban  and  Cape  Town  is 
relatively  cheap. 

St.  Vincent,  however,  is  still  a  large  coaling  station  with  three  large  depots,  having  an  average  of  about 
30,000  tons  of  Welsh  coal  in  stock.  Ships  are  coaled  rapidly  from  lighters  of  from  50  to  200  tons  burden.  The 
1912  contract  price  for  Welsh  coal  is  31s.,  free  alongside,  as  compared  -with  29s.  in  1911. 

At  Cape  Town  native  Xatal  coal  is  sold.  The  dealers  quote  1912  contract  prices  from  22s.  to  23s.  (trimmed) 
for  Natal  coal,  and  40s.  for  Welsh  coal.  Cape  Town  is  not  a  large  coaling  station,  the  usual  supplj'  on  hand 
being  about  1,000  tons  of  Admiralty  Welsh  coal,  1,000  tons  of  Natal  coal,  and  500  tons  of  Scotch  coal.  There 
are  three  coal  merchants,  and  there  are  facilities  for  coaling  either  at  docks  or  by  lighters. 

The  largest  coalmg  station  on  the  south  African  route  is  Durban.  Although  off  the  direct  route  from  the 
Cape  of  Good  Hope  to  Australia,  many  vessels  call  at  Durban  because  its  coal  is  sold  so  cheaply.  The  Natal 
coal  has  a  lower  steaming  value  than  Welsh  or  Pocahontas  coals,  but  its  price  is  only  12s.  to  14s.  6d.,  f.  a.  s. 
at  the  wharves.  The  new  stores  near  the  docks  have  capacity  for  25,000  tons.  Vessels  may  load  coal  at  the 
docks  with  special  appliances,  or  the  coal  may  be  lightered  to  them  at  the  outer  anchorage. 

Vessels  usually  take  on  sufficient  Natal  coal  to  run  them  to  their  Australian  destination,  where  native  coal 
is  available  for  the  return  journey.  Sydney,  the  leading  port  of  Australia,  is  frequented  by  vessels  from  aU 
parts  of  the  world  and  is  a  coaling  station  of  the  first  rank,  its  supply  being  obtained  cheaply  from  Newcastle, 
New  South  Wales,  and  other  minor  local  sources.     Coal  is  delivered  from  lighters,  colliers,  or  wharves. 

Ail  of  the  larger  Australian  ports  have  supplies  of  coal.  Adelaide,  South  Australia,  has  five  dealers  with 
a  stock  of  about  8,000  tons  of  Newcastle,  New  South  Wales,  coal,  which  may  be  loaded  from  lighters  or  along- 


164  PANAIkiA  CANAL  TRAFFIC  AND  TOLLS. 

side  hulks.  Albany,  Western  Australia,  provides  the  coal  required  by  such  vessels  as  regularly  trade  there, 
and  is  an  emergencj'  coaling  station  used  when  necessary  by  vessels  bound  for  other  Australian  ports.  Three 
dealers  keep  about  3,000  tons  of  Newcastle  coal  stored  in  hulks,  alongside  of  which  vessels  may  replenish  their 
bunkers.  At  Brisbane,  Queensland,  ships  may  coal  from  lighters  or  at  wharves,  an  average  supply  of  about 
5,000  tons  of  Australian  coal  being  kept  in  stock.  At  Fremantle,  Western  Australia,  four  dealers  keep  on  hand 
an  average  total  of  about  12,000  tons  of  Newcastle  coal.  Vessels  may  coal  from  lighters  or  from  hulks.  At 
Hobart,  Tasmania,  tliree  dealers  have  an  average  supply  of  2,500  tons  of  Newcastle  coal,  which  is  loaded  from 
lighters.  Melbourne,  Victoria,  has  an  average  stock  of  25,000  tons  of  Newcastle  coal,  sold  by  eight  dealers, 
who  supply  vessels  either  at  wharves  or  from  lighters.  Newcastle,  New  South  Wales,  is  the  great  coal-shipping 
port  of  Australia,  and  any  quantity  of  bunker  coal  may  be  obtained  there  at  the  coal  wharves  or  from  lighters. 

The  price  at  which  the  United  States  Navy  can  secure  coal  in  1912  at  Sydney  is  16s.,  trimmed,  for  best 
Southern  screened,  and  at  Melbourne,  19s.  6d.  f.  a.  s.  for  Newcastle  and  Southern.  The  1912  prices  of  coal, 
such  as  is  ordinarily  used  by  merchant  vessels,  are  quoted  by  a  large  dealer  as  follows:  Sydney,  12s.  6d.  to  14s.  6d.; 
Melbourne,  19s.  6d.;  Adelaide,  2.3s.  to  25s.  6d.;  Albany,  25s.  6d.;  Fremantle,  25s.  6d.;  Newcastle,  8s.  6d.;  Bris- 
bane, 10s.  6d.  to  15s.  6d.;  and  Townsville,  26s.  to  28s.  6d. 

Coal  prices  at  New  Zealand  stations  are  higher  than  in  Australia,  but  coal  is  available  at  any  of  the  larger 
ports.  The  supply  comes  from  two  general  sources:  (1)  Local  New  Zealand  coal  is  obtained  from  Westport, 
which  is  the  largest  New  Zealand  coal  shipping  port  and  is  also  a  coaling  station  where  bunker  coal  is  supplied 
at  the  wharves  and  from  colliers  in  the  bay;  (2)  Newcastle  (New  South  Wales)  coal  is  sold  at  Auckland  and 
some  other  ports  along  \vith  New  Zealand  coal. 

At  Auckland  vessels  take  on  coal  when  anchored  in  the  stream,  the  coal  being  taken  directly  from  Westport 
and  Newcastle  colUers.  At  Dunedin  an  average  supply  of  about  2,500  tons  of  New  Zealand  coal  is  kept  in 
stock,  but  on  short  notice  a  large  supply  may  be  obtained  from  the  mines.  Vessels  are  coaled  from  hulks  and 
hghters.  Three  dealers  at  Wellington  keep  about  5,000  tons  of  Westport  coal  in  stock,  the  coal  being  put 
aboard  vessels  from  alongside  hulks.  Colliers  may  be  ordered  from  Westport  to  Wellington  on  short  notice. 
Lyttleton  keeps  about  5,000  tons  of  New  Zealand  coal  in  hulks  and  colliers,  and  larger  quantities  may  be 
obtained  from  Westport  colliers  on  notice  of  a  few  days.  The  1912  contract  prices  for  New  Zealand  coal  are 
quoted  by  a  large  coal  merchant  as  follows:  Wellington,  20s.  9d.;  Lyttleton,  21s.  9d.;  Auckland,  23s.  9d.;  and 
Port  Chalmers  (Dunedin),  23s. 

III.  Coaling  Facilitiks  and  Coal  Costs  on  the  South  American  or  Magellan  Eoute. 

The  coaling  facilities  along  the  South  American  route  are  less  adecjuate  than  on  the  Suez  and  South  African 
routes,  because  native  South  American  coal  is  not  available  until  Coronel,  Chile,  is  reached.  The  usual  practice 
of  vessels  sailing  from  ports  on  the  eastern  seaboard  of  the  United  States  to  points  on  the  west  coast  of  South 
America  is  to  take  on  sufficient  coal  at  the  port  of  clearance  to  carry  them  to  Coronel,  where  a  large  supply 
of  inferior  Chilean  coal  is  obtainable.  Ships  may  coal  at  St.  Lucia,  St.  Thomas,  or  Montevideo,  but  the  price 
of  the  American  and  British  coal  at  those  stations  is  so  lugh  that  most  steamship  companies  sacrifice  as  much 
cargo  space  as  may  be  necessary  to  secure  room  for  the  coal  required  for  the  run  to  Coronel. 

Vessels  at  Coronel  are  coaled  alongside  hulks  or  from  lighters.  About  2,000  tons  of  Australian  coal  are 
kept  in  hulks,  but  the  supply  consists  mainlj^  of  native  coal,  1 J  tons  of  which  are  about  equal  in  steaming  value 
to  1  ton  of  Welsh  coal.  The  1912  contract  price  for  Chdean  coal  at  Coronel  is  24s.  6d.  (trimmed).  A  large 
navigation  company  reported  purchases  in  1911  at  20s.  6d.  ($5),  and  another  at  $6  per  ton. 

A  limited  supply  of  bunker  coal  is  kept  on  hand  at  other  west  coast  South  American  ports.  Iquique,  the 
great  nitrate  port,  has  three  dealers  who  have  a  supply  of  5,000  tons  of  Australian  coal,  5,000  tons  of  Chilean, 
and  some  Welsh  coal,  all  of  which  they  handle  from  lighters.  Antofagasta,  another  nitrate  port,  keeps  in  stock 
not  less  than  20,000  tons  of  Australian  coal,  which  is  handled  from  lighters.  At  Punta  Arenas,  on  the  Straits  of 
Magellan,  two  dealers  keep  on  hand  about  4,000  tons  of  Welsh  and  Australian  coal,  and  vessels  are  coaled  from 
the  hulks  in  which  it  is  stored.  At  Valparaiso  the  average  supply  of  its  four  dealers  is  5,000  tons  of  Australian 
coal,  3,000  tons  of  Pocahontas  coal,  and  4,000  tons  of  AVelsh  coal,  handled  from  lighters.  Comparatively  little 
native  Chilean  coal  is  kept  in  stock  by  west  coast  South  American  dealers,  except  at  Coronel,  most  of  the  coal 
sold  being  from  the  United  States,  Australia,  and  Wales ,  because  vessels  bound  for  Chile  for  nitrate  cargoes  are 
eager  to  carry  coal,  even  at  low  rates.     Moreover,  the  Chilean  coal  is  not  only  of  inferior  quality,  but  deteriorates 


panajMa  canal  traffic  and  tolls. 


165 


rapidly  and  suffers  from  handling.  For  these  reasons,  Chilean  coal  is  sold  mainly  at  Coronel,  which  is  the  lead- 
ing coaling  station  on  the  west  coast  of  South  America.  In  spite  of  low-freight  rates,  British  and  American 
coals  are  expensive.  The  1911  contract  price  paid  by  the  United  States  Navy  Department,  at  Valparaiso,  was 
51s.  f.  o.  b.  and  52s.  trimmed,  for  Pocahontas,  New  River,  Georges  Creek,  or  Admiralty  Welsh,  at  supplier's 
option.  Prices  of  native  coal  at  Coronel  are  less  than  half  these  figures.  The  1912  contract  of  the  Navy  Depart- 
ment calls  for  Admiralty  Welsh  coal,  at  61s.  9d.  f.  o.  b.,  and  62s.  6d.  trimmed.  A  large  dealer  reports  35s. 
as  the  price  of  Australian  and  Welsh  coal  such  as  is  sold  to  merchant  vessels  at  Valparaiso  and  Iquique. 

On  the  return  voyage  from  western  South  America  to  the  Atlantic  seaboard  of  the  United  States  and  Europe, 
it  is  customary  to  start  with  a  small  supply  of  coal  in  the  vessel's  bunkers,  because  the  Chilean  coal  is  inferior 
in  quahty  and  the  Welsh,  Pocahontas,  or  Austrahan  coals  command  high  prices  on  the  west  coast  of  South 
America.  Vessels  coal  eastbound  at  Montevideo,  where  about  25,000  tons  of  Welsh  coal  are  kept  in  stock 
by  four  dealers,  who  handle  it  over  lighters.  The  contract  price  for  1912  quoted  by  various  dealers  is  41s. 
($9.98)  free  on  board.  One  navigation  company  reported  purchases  at  36s.  6d.  ($8.87)  in  1911,  and  another 
at  $8.75  per  ton;  862,037  tons  of  Welsh  coal  were  shipped  to  Montevideo  in  1910. 

Sufficient  coal  is  taken  on  at  Montevideo  to  run  a  vessel  bound  for  the  United  States  to  St.  Lucia,  where 
the  supply  is  replenished.  An  average  stock  of  about  6,000  tons  of  Pocahontas,  5,000  of  New  River,  and  3,000 
of  Eureka  coal  is  kept  on  hand  at  St.  Lucia.  There  are  three  dealers  at  whose  wharves  vessels  may  be  rapidly 
coaled.  Several  dealers  quote  a  1912  contract  price  of  23s.  (trinmied),  alongside  wharf,  for  New  River  and 
Pocahontas  coal.  In  1911,  coal  was  sold  at  St.  Lucia  to  a  New  York  navigation  company  for  23s.  ($5.59) ,  and 
to  another  company  at  $5.30.  Vessels  may  also  coal  at  St.  Thomas,  where  an  average  supply  of  6,000  tons  of 
Pocahontas  and  3,000  of  Ferndale  (Welsh)  coal  is  kept  on  hand  and  handled  either  from  wharf  or  lighters.  The 
1912  contract  price  for  Pocahontas  coal  is  22s.  free  on  board  alongside  wharf. 

The  following  statement,  furnished  by  a  company  that  operated  steamers  during  1911  from  New  York 
via  the  Straits  of  Magellan  to  Callao  and  return,  gives  the  fuel  expenses  iacurred  by  a  vessel  for  a  round-trip 
voyage.  The  figures  are  for  contract  prices  paid  for  coal,  trimmed  into  bunkers;  and  the  amount  taken  at  each 
station  is  indicated. 


steamer  sailed  from  New  York  with 

Replenished  at  Coronel  with 

(Sufflcient  to  take  steamer  to  Callao  and  back  to  Coronel,  where  she  conunenced  leplenishing  for  homeward  voyage.) 

Eeplenished  at  Coronel  with 

Replenished  at  Montevideo  with 

Replenished  at  St.  Lucia  with 

Completed  discharge  at  New  York. 


S3. 25 
6.00 

6.00 
8.75 
5.30 


The  average  cost  per  ton  for  the  coal  consumed  by  the  above  vessel  was  $5.50. 

Another  company  wliich  operates  a  large  number  of  vessels  between  New  York  and  the  west  coast  of  South 
America  has  furnished  the  following  information  concerning  the  price  at  wliich  coal  was  sold  at  stations  along 
the  route  via  the  Straits  of  Magellan  during  the  six  years  ending  in  1911.  The  average  price  paid  by  the  com- 
pany for  this  period  was  $3.73  per  ton  at  New  York;  $5.83  (20s.)  at  St.  Lucia,  West  Indies;  $8.75  (36s.)  at 
Montevideo;  and  $5.47  (22s.)  in  Cliile.  The  average  price  at  Norfolk,  Va.,  during  the  6-year  period  was  $3.19. 
The  company  states  "that  the  quantity  taken  at  each  place  varies  widely,  but  the  average  price  paid  for  coal 
during  the  six  years  has  been  $4.75  per  ton,"  and  this  figure  is  said  to  allow  for  the  relative  inefficiency  of 
Chilean  coal,  IJ  tons  of  Chilean  coal  being  the  equivalent  of  1  ton  of  Admiralty  Cardiff. 

Concerning  the  practice  of  this  company  as  regards  the  coaling  of  its  vessels,  tne  statement  is  made  that — 

In  our  service,  our  custom  is  to  supply  the  steamers  outward  with  coal  sufficient  for  the  entire  voyage  to  Coronel,  Chile,  40  days  steam- 
ing, say  1,200  to  1,400  tons,  which  reduces  productive  ship  capacity  by  that  much.     A  smaller  proportion  is  taken  on  the  homeward  voyage, 
34998°— 12 12 


166  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

the  longest  interval  between  coaling  ports  being  21-22  days.  The  outward  senace  ^^a  the  canal  would  save  fully  10  days'  steaming,  bo 
if  a  full  supply  was  shipped  at  loading  port  it  would  release  250-300  tons  of  cargo  capacity.  How  much,  if  any,  saving  there  would  be  on 
the  homeward  voyage  ^'ia  the  canal  will  depend  on  what  coaling  facilities  are  established,  but  from  the  nitrate  ports  direct  to  the  Isthmus 
would  be  a  shorter  run  than  from  Monte'v'ideo  to  St.  Lucia  at  present,  and  coal  would  certainly  not  be  more  expensive  at  Colou  than  at 
St.  Lucia,  so  this  item  would  be  rather  in  favor  of  than  against  the  canal. 

Vessels  on  the  outward  voyage  from  Europe  to  the  west  coast  of  South  America  sometimes  start  with  coal 
enough  to  reach  Coronel,  and  at  other  times  they  may  replenish  their  supply  at  iLadeira  or  St.  Vincent.  On 
the  return  journey  they  take  on  a  smaller  supply  at  Coronel  or  other  west  coast  ports  and  recoal  usually  at 
ilontevideo  and  St.  Vincent  or  Madeira.  The  coal  supply  at  St.  Vincent  was  referred  to  above  in  connection 
with  the  South  African  route.  The  1912  contract  price  of  Welsh  coal  at  Madeira  is  quoted  by  various  dealers 
at  23s.  (trinuned).     The  average  supply  consists  of  25,000  tons  of  Welsh  ana  4,000  tons  of  Westphalian  coal. 

IV.  Coaling  Facilities  and  Coal  Costs  via  the  Panama  Route. 

In  contrasting  the  costs  of  coal  along  the  Panama  route  with  those  via  alternative  routes,  the  prices  at 
which  coal  is  now  being  sold  at  stations  on  the  Panama  route  and  the  coaling  facilities  now  existmg  at  these 
pomts  can  not  fairly  be  made  the  basis  of  comparison.  The  Suez,  South  African,  and  South  American  routes 
are  old  and  are  equipped  with  stations  at  which  coal  merchants  have  a  well-established  trade,  while  the  stations 
along  the  Panama  routes  west,  north,  and  south  of  Panama  are  far  apart  and  relatively  unimportant. 

The  relative  fuel  expenses  incurred  by  vessels  using  the  Panama  and  alternative  routes  will  depend,  first 
of  all,  upon  the  price  at  which  coal  is  sold  at  the  canal.  Coal  of  a  high  grade  is  to  be  had  at  low  prices  at  the 
Atlantic-Gulf  ports  of  the  United  States  and  at  West  Indian  and  Caribbean  stations.  The  Panama  Canal  can 
be  reached  from  the  Atlantic  ports  of  the  United  States  with  low  fuel  expenses.  A  vessel  at  New  York  may 
take  on  coal  at  from  .$3  to  .$3.25  f.  a.  s.  and  at  Newport  News  or  Norfolk  at  $3  f.  o.  b. 

The  quantity  required  to  be  taken  at  New  York  and  Norfolk  when  clearing  for  Panama  is  small  and  prices 
are  low.  A  ship  sailing  from  New  York  to  the  Suez  Canal  can  start  with  good  inexpensive  coal,  but  the  vessel 
must  devote  more  space  to  coal  than  is  required  on  a  voyage  to  Panama.  The  prices  now  prevailing  at  Med- 
iterranean stations  for  Welsh  or  Durham  coal  are  from  21s.  to  25s.  lOd.  ($5.11  to  $6.34).  The  1912  contract 
renewal  price  for  Welsh  coal  at  Port  Said  is  25s.  6d.  ($6.21)  f.  o.  b. 

The  prices  at  which  coal  is  now  sold  to  merchant  vessels  at  Colon  and  Panama  and  at  Pacific  ports  north, 
of  the  Isthmus  are  high  and  are  no  indication  of  the  prices  that  may  be  expected  to  prevail  after  the  opening 
of  the  canal.  The  Panama  Raih'oad  Co.  sells  Pocahontas  and  New  River  coal  at  Colon  and  Panama  to  merchant 
vessels  at  prices  that,  in  most  instances,  yield  a  good  profit.  It  will  probably  not  be  the  policy  of  the  Govern- 
ment, should  it  decide  to  maintain  coaling  stations  for  supplying  merchant  vessels,  to  charge  prices  much  in 
excess  of  actual  costs. 

At  San  Francisco,  which  is  now  the  chief  coaluig  station  between  Panama  and  Japan,  the  1911  price  was 
$6.90  per  ton  for  Comox  (British  Columbia)  run-of-mine  coal.  At  no  point  beyond  San  Francisco  and  Van- 
couver on  the  Panama  route  to  Japan  can  large  quantities  of  coal  be  obtamed  at  low  prices.  A  relatively 
large  supply  is  kept  at  Honolulu,  but  the  prices  during  recent  years  have  ranged  from  $7  to  $10.50  per  ton. 
Honolulu,  moreover,  is  not  on  the  direct  route  between  the  United  States  and  the  Orient,  and  its  coaling  station 
is  of  service  mainly  to  vessels  plying  m  the  trade  between  the  Pacific  coast  of  the  United  States  and  Australia. 

The  coalmg  stations  at  San  Francisco,  Seattle,  and  Vancouver  will  in  the  future  bear  about  the  same  rela- 
tion to  the  route  Yia  the  Panama  Canal  to  the  Orient  that  the  coaling  stations  at  or  near  the  Suez  Canal  bear 
to  the  route  from  Europe  via  Suez  to  the  Orient.  Vessels  leaving  the  ilediterranean  for  the  East  take  on  enough 
Welsh  or  English  coal  at  Mediterranean  stations  or  at  the  Suez  Canal  for  the  long  run  from  Port  Said  to  Colombo 
or  even  Singapore.  Likewise  a  vessel  leaving  San  Francisco  or  Puget  Sound  takes  coal  for  the  voyage  across 
the  north  Pacific  to  Japan.  Tlie  distance  across  the  north  Pacific  from  San  Francisco  to  Yokohama  is  practi- 
cally the  same  as  the  distance  from  Suez  to  Singapore.  If  m  the  future  the  price  of  coal  at  San  Francisco  or 
Puget  Sound  is  as  low  as  at  Port  Said,  or  possibly  lower,  the  use  of  the  Panama  route  will  be  greatly  aided. 
Vessels  taking  the  route  via  the  Panama  Canal  and  Yokohama  to  Hongkong  ami  Manila  will  secure  coal  in 
Japan,  while  vessels  outbound  from  Europe  via  Suez  to  the  Orient  wtU  be  able  to  buy  coal  at  or  near 
Singapore.  Vessels  taking  the  Panama  route  to  the  Pacific  coast  of  Asia  will  have  some  advantage  over 
vessels  taking  the  Suez  route,  as  regards  fuel  costs,  for  the  latter  part  of  their  voyage,  because  coal  is  cheaper 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  167 

in  Japan  than  at  Singapore.  Likewise  for  the  trip  homeward  from  the  Orient  by  way  of  the  Panama  Canal  the 
cheap  coal  obtainable  in  Japan  will  be  to  the  advantage  of  the  Panama,  as  compared  with  the  Suez,  route. 

The  use  of  the  Panama  Canal  by  vessels  engaged  in  the  traffic  between  Europe  and  the  Orient  will  depend 
very  largely  upon  the  cost  of  coal  at  Colon.  The  distance  from  Europe  to  China  and  Japan  is  less  via  Suez 
than  via  the  Panama  Canal,  and  if  the  American  route  is  taken,  it  will  probably  be  chosen  because  of  the 
cheaper  coal  costs.  The  jsrice  of  coal  at  St.  Lucia,  St.  Thomas,  and  other  stations  between  Europe  and  the 
Panama  Canal  is  shghtly  higher  than  at  Algiers,  Oran,  and  other  Mediterranean  ports  on  the  way  to  the  Suez 
Canal.  Moreover,  the  cost  of  coal  at  San  Francisco  and  at  Vancouver  wiU  probably  range  higher  than  at 
Colombo  and  Singapore.  It  thus  seems  evident  that  if  the  fuel  expenses  are  less  from  Europe  to  the  Orient 
via  Panama  than  via  Suez  it  will  be  largely  because  the  cost  of  coal  is  lower  at  Cristobal  than  at  Port  Said. 

In  voyages  from  the  Atlantic  seaboard  of  the  LTnited  States  to  Austraha  and  New  Zealand  the  advantages 
of  the  Panama  route  as  regards  coal  costs  may  influence  choice  of  routes.  If  the  Panama  route  is  chosen,  vessels 
will  have  good,  cheap  coal  from  the  Atlantic  seaboard  of  the  United  States  to  the  canal,  where  they  wiU  fill 
their  bunkers  with  enough  coal  to  make  the  long  run  from  the  canal  to  New  Zealand  or  to  Australia,  in  both  of 
which  countries  native  coal  is  cheap.  Vessels  will  probably  not  coal  between  the  canal  and  New  Zealand, 
because  the  prices  at  Tahiti  and  other  mid-Pacific  stations  will  unquestionably  be  liigh  and  the  supply  of  coal 
will  probably  be  uncertain.  Vessels  taldng  the  Cape  of  Good  Hope  route  instead  of  the  route  via  Panama 
from  the  United  States  to  Australia  will  doubtless  use  American  coal  for  the  long  run  to  Cape  Town  or  Durban, 
although  this  will  require  the  sacrifice  of  some  of  the  ship's  cargo  capacity  to  provide  space  for  coal.  At 
Durban,  Natal  coal  can  be  gotten  as  low  as  12s.  to  14s.  6d.  ($2.92  to  $3.53)  per  ton.  The  advantage  to  the 
Cape  of  Good  Hope  route  resulting  from  the  low  price  of  Natal  coal  will,  however,  probably  be  quite  offset  by 
the  fact  that  the  distance  and  time  via  the  Panama  route  wiU  be  less  and  the  amount  of  coal  consumed  will 
be  smaller.  For  the  same  reasons  the  coal  advantages  are  with  the  Panama  route  as  compared  with  that  via 
the  Straits  of  Magellan  to  New  Zealand. 

From  Europe  to  New  Zealand,  the  Panama  route  is  shorter  and  requires  the  consumption  of  less  coal; 
but  the  Suez  route  is  shorter  from  Europe  to  Australian  ports.  Since  coal  prices  en  route  to  Panama  at  St. 
Lucia,  St.  Thomas,  or  other  stations  are  slightly  above  the  prices  at  Gibraltar,  Oran,  Algiers,  or  other  points 
en  route  to  the  Suez  Canal,  the  saving,  if  nnj,  in  fuel  costs  via  the  Panama  route  will  depend  mainly  upon 
the  prices  charged  at  Colon.'  If  coal  is  sold  at  Colon  for  less  than  is  charged  at  Port  Said,  some  vessels  will 
be  drawn  to  the  Panama  Canal  that  would  otherwise  take  another  route  from  Europe  to  Australasia.  The 
largest  port  in  Austraha,  Sydney,  being  but  150  miles  further  from  Liverpool  via  Panama  than  via  Suez,  the 
Panama  Canal  ought  to  compete  actively  with  the  Suez  route  for  the  Australasian-European  trade. 

Tlie  foregoing  analysis  of  coaling  facilities  and  coal  prices  along  the  various  routes  with  which  the  Panama 
Canal  must  compete  emphasizes  the  importance  of  maintaining  at  Colon  and  Panama  large  supphes  of  coal 
to  be  sold  at  prices  as  low  as  they  can  be  made  without  loss  to  the  canal  administration,  which  obviously  ought 
to  be  authorized  to  maintain  coaling  stations  at  both  termini  of  the  canal.  The  experience  which  the  Panama 
Railroad  Co.,  acting  for  the  Isthmian  Canal  Commission,  has  had  during  the  period  of  canal  construction 
in  purchasing  and  chstributing  coal  at  the  Isthmus  indicates  the  prices  at  which  coal  can  probably  be  sold 
without  loss,  or  with  small  profit,  to  the  United  States.  Most  of  the  coal  used  by  the  Panama  Railroad  Co. 
and  the  Isthmian  Canal  Commission  has  been  Pocahontas  and  New  River  coal  purchased  at  Norfolk.  The 
prices  paid  at  Norfolk  fi-om  1905  to  the  present  time,  the  amounts  purchased  each  year,  and  the  freight  rate 
from  Norfolk  to  the  Isthmus  are  stated  in  Table  V  on  page  168. 

The  Government  contract  prices  for  coal  delivered  at  the  end  of  the  ship's  tackle  at  the  Isthmus  have 
varied  somewhat  year  by  year.  In  1906-7  the  cost  of  coal  at  the  end  of  the  ship's  tackle  at  the  Isthmus  was 
from  $4.30  to  $4.40;  m  1907-8  the  cost  was  from  $4.27  to  $4.42;  m  1908-9,  $4.14  to  $4.29;  in  1909-10,  $3.74 
to  $3.84;  in  1910-11,  $3.94^;  1911-12,  .$3.80^,  and  smce  the  4th  of  April,  1912,  it  has  been  $4.09J. 

The  prices  now  being  paid  by  the  Panama  Railroad  Co.  for  coal  were  fixed  by  contract  made  April  4,  1912, 
for  a  period  of  two  and  one-half  yeare.  LTnder  this  contract  the  price  to  be  paid  for  coal  at  Norfolk  is  $2.70  per 
ton,  and  $1.39^  is  to  be  paid  for  the  transportation  of  the  coal  from  Norfolk  to  the  Isthmus  and  the  delivery  of 
the  coal  at  the  end  of  the  ship's  tackle.  The  contract  between  the  Panama  Railroad  Co.  and  the  coal  company, 
however,  provides  that  if  the  commercial  price  of  coal  declines  between  Ajiril  1  and  June  1  of  1913  or  1914  the 


168 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


price  paid  for  coal  by  the  Panama  Railroad  Co.  is  to  be  reduced  to  $2.65  per  ton.  If  the  price  of  $2.70  at 
Norfolk  prevails  through  the  two  and  one-half  year  period,  the  cost  of  coal  delivered  at  the  end  of  ship's  tackle, 
at  Colon  will  be  $4.09^.  If  to  this  there  be  added  50  cents  per  ton  to  cover  overhead  charges,  storage,  and 
depreciation,  and  50  cents  a  ton  as  the  cost  of  delivering  the  coal  aboard  vessels  from  cars,  lighters,  or 
barges,  the  price  at  which  the  Panama  Railroad  Co.,  or  the  Isthmian  Canal  Commission,  or  the  canal  admin- 
istration can  sell  coal  without  loss,  or  possibly  with  a  slight  profit  at  Colon  up  to  October  4,  1914,  -vvill  be  $5.09i; 
or  if  the  price  at  Norfolk  should  be  reduced  5  cents  a  ton,  $5.04J.  If  the  coUiers  carrjong  coal  through  the 
Panama  Canal  for  delivery  at  the  station  at  Balboa  are  required  to  pay  a  toll  of  $1.20  per  net  vessel  ton, 
the  cost  of  coal  delivered  at  Balboa  wiE  be  about  50  cents  per  ton  higher  than  at  Colon  or  Cristobal.  It 
^viU  thus  be  possible  for  the  Panama  Railroad  or  the  canal  authorities  to  sell  coal  at  Balboa  Avithout  loss,  or 
with  shght  profit,  for  $5.59J  or  (if  the  Norfolk  price  is  $2.65)  $5.54^. 

The  above  details  concerning  the  actual  cost  of  coal  delivered  at  the  Isthmus  of  Panama  show  that  coal 
can  be  sold  from  a  Government  station  in  Cristobal  at  about  $5  per  ton  and  from  a  station  in  Balboa  for 
about  $5.50  per  ton.  It  should  be  stated  that  the  allowance  here  made  for  overhead  charges,  depreciation, 
and  lighterage — $1  per  ton — is  hberal.  These  prices  compare  favorably  with  the  current  cost  of  coal  at 
the  Suez  Canal.  The  1912  contract  price  of  Welsh  coal  at  Port  Said  is  26s.  ($6.33)  per  ton,  and  the  price 
at  which  coal  is  sold  to  companies  that  renewed  previous  contracts  is  25s.  6d.  ($6.21).  It  seems  certain  that 
coal  can  be  profitably  sold  by  the  United  States  Government  at  Cristobal  for  about  $1.20  to  $1.25  less  than 
the  price  charged  at  Port  Said.  This,  however,  can  be  brought  about  only  by  the  maintenance  of  Govern- 
ment coahng  stations  at  the  canal  termini  and  by  selling  coal  at  cost,  or  with  but  slight  profit. 

Table  V.— COST   OF   COAL  TO   THE    PANAMA    RAILROAD    CO.   AT   THE  '  ISTHMUS— CONTRACT    PRICES  »    PAID  AT 
NORFOLK,  AND  CONTRACT  RATES   FOR  FREIGHT  FROM   NORFOLK  TO  THE  ISTHMUS,  1905-1912. 


Maximum  quan- 
tity contracted 
for  (tons). 


Freight 
from  Nor- 
folk to 
Istlimus. 


1906-7: 

Apr.  1, 1906,  to  Aug.  1, 1906  . 
Aug.  1.  1906,  to  Apr.  1,  1907.. 
Additional  contract 


J2.65 
2.75 
2.75 


60,000-125,000 
60.000 


1.65 
1.65 
1.65 


1907-8: 

Apr.  1, 1907,  to  Aug.  31, 1907. . 
Apr.  1, 1907,  to  Mar.  31, 1908.. 

Apr.  1, 1908,  to  Aug.  31, 1908.. 
Sept.  1, 1908,  to  Mar.  31, 1909.. 

1909_i0: 

Apr.  1, 1909,  to  Aug.  31, 1909. . 
Sept.  1,  1909,  to  Mar.  31,  1910. 


1911-12.. 
1912-14'. 


545,000 
550,000 


1.34i 
1.29J 
1.39i 


1  Contracts  have  usually  run  for  a  year  from  .A.pr.  1 

2  With  addition  of  S25  per  steamer  for  disbursing  of  colliers  at  Colon. 

s  Contracts  rim  for  two  and  a  half  years  from  .\pr.  4, 1912;  if  between  Apr.  1  and  June  1  of  1913  or  1914  the  conmiercial  price  of  coal  declines  below  S2.70,  the  contract 
price  tor  the  remainder  of  the  contract  period  sliall  be  82. 65. 

If  the  price  of  coal  is  kept  low  at  Cristobal  and  Balboa  the  Panama  Canal  will  have  a  decided  advantage 
over  the  Suez  Canal  as  regards  fuel  costs,  especially  for  vessels  engaged  in  the  commerce  between  the  eastern 
seaboard  of  the  United  States  and  the  Orient.  The  relative  expenses  for  coal  via  the  Panama  route  and  via 
the  Suez  Canal  for  vessels  making  round-trip  voyages  between  New  York  and  IManila  (which  is  equally  distant 
from  New  York  bj''  the  two  alternative  routes)  may  be  indicated  by  a  concrete  illustration. 

It  was  stated  above  that  a  steamer  of  4,640  tons  gross  and  2,927  tons  net  register,  British  measurement, 
operated  at  a  speed  of  10^  knots  on  a  round  trip,  made  in  1911,  between  New  York  and  Manila,  by  way  of  the 
Suez  Canal,  consumed  4,475  tons  of  coal,  the  cost  of  which  was  $20,868.75.  Maj.  Eugene  T.  Wilson,  Subsistence 
Officer  for  the  Isthmian  Canal  Commission,  has  calculated  what  the  fuel  expenses  would  have  been  for  this 


panajvia  canal  traffic  and  tolls 


169 


vessel  had  it  made  the  trip  during  1911  between  New  York  and  Manila  by  way  of  the  Panama  route  and  paid 
$4.50  per  ton  for  such  coal  as  was  purchased  at  Colon.     Maj.  WUson  explains  his  calculation  as  follows: 

It  is  assumed  that  the  ship  loads  at  New  York  and  takes  on  only  enough  coal  to  run  to  Newport  News,  where  she  can  get  the  best  coal 
and  get  it  cheaper,  I  assume,  further,  that  it  is  not  desirable  to  put  into  this  ship  more  than  1,050  tons  of  coalat  one  time.  I  assume,  also, 
that  her  coal  consumption  is  such  as  to  give  the  ship  the  usual  20  per  cent  margin  of  safety,  as  far  as  Yokohama.  The  quantities  and  costs 
of  coal  would  be  as  follows: 

The  ship  takes  on  50  tons  at  New  York  at  $3.25;  proceeds  to  Newport  News  and  loads  1,050  tons  at  $3;  thence  to  Colon,  burning  en 
route  370  tons,  leaving  730  tons  in  her  bunkers,  and  at  Colon  purchases  320  tons  at  $4.50,  thus  filling  her  bunkers  up  again  to  1,050  tons. 
The  ship  steams  thence  to  San  Francisco,  burning  610  tons  of  coal  en  route,  and  arriving  there  with  440  tons  in  the  bunkers.  Eight  hundred 
and  fifteen  tons  are  required  for  the  run  to  Yokohama,  accordingly  the  ship  takes  on  at  San  Francisco  375  tons  of  Comox  (British  Columbia) 
run-of-mine  coal  at  $6.90  per  ton.  At  a  Japanese  port  she  buys  900  tons  of  Japanese  coal  at  $3.40,  or  14  shillings  per  ton.  ^'ith  the  900 
tons,  she  travels  down  as  far  as  Manila  and  comes  back  empty,  coaling  back  for  the  return  voyage  at,  say  Nagasaki  or  Moji,  filling  up  her 
bunkers  with  1,050  tons  at  $3.40  per  ton.  She  requires  815  tons  from  Yokohama  to  San  Francisco,  where  she  arrives  with  235  tons.  As  610 
tons  are  required  from  San  Francisco  to  Colon,  she  buys  375  tons  in  San  Francisco  at  $6.90,  and  at  Colon  370  tons  more  at  $4.50  to  take  her 
home.    The  amounts  paid  for  coal  for  the  supposed  round  trip  would  have  been  as  follows: 

COST  OF  COAL  FOR  ROUND-TRIP  VOYAGE,  VIA  PANAMA,  FROM  NEW  YORK  TO  MANILA.     1911  CONTRACT  PRICES. 


Price  per 


New  York 

Newport  News 

Colon 

San  Francisco 

Total  to  Yokohama . 

At  Japanese  ports 

Homeward  from  Manila: 

Moji 

San  Francisco 

Colon 

Total  homeward . . . . 
Total  for  voyage 


$3.25 

3.00 
4.50 
6.90 


S162. 50 
3, 150. 00 
1,440.00 
2,587.50 


7,340.00 


3,570.00 
2,587.50 
1,665.00 


7,822.50 


The  above  calculation  shows  that  the  vessel  would  have  required  4,490  tons  for  the  round-trip  voyage 
between  New  York  and  Manila  by  way  of  Panama  as  compared  with  4,475  tons  that  were  used  on  the  round 
trip  by  way  of  the  Suez  Canal.  The  total  fuel  expenses  for  the  round  trip  via  Panama,  as  calculated  by 
Maj.  Wilson,  would  have  been  $18,222.50,  whereas  the  actual  expenses  by  way  of  Suez  were  $20,868.75, 
the  difference  in  favor  of  Panama  being  $2,646.25.  The  Colon  price  assumed  by  Maj.  Wilson  was  $4.50; 
but  even  on  the  basis  of  a  price  of  $4.75  in  1911,  the  difference  in  favor  of  the  Panama  route  would 
have  been  $2,473.75.  The  lower  cost  by  way  of  Panama  was  due  (1)  to  the  price  of  coal  at  Colon  as  com- 
pared with  prices  at  Port  Said  and  Algiers,  and  (2)  to  the  lower  cost  of  coal  at  Japanese  ports  than  at 
Sabang  on  the  Malacca  Straits. 

In  the  above  comparison  of  the  fuel  expenses  by  way  of  the  Panama  and  Suez  routes  the  prices  paid  for 
the  coal  were  the  contract  rates  prevailing  during  1911,  with  an  assumed  price  of  $4.50  or  $4.75  per  ton  at 
Colon.  If  the  1912  contract  prices  are  substituted  in  place  of  the  1911  prices  in  the  comparison,  and  it  be 
assumed  that  $5  per  ton  is  paid  for  coal  at  Colon,  the  costs  of  coal  by  the  two  alternative  routes  become 
those  shown  in  the  table  on  page  170. 

The  1912  contract  prices  and  the  assumption  that  coal  is  sold  at  Colon  at  $5  per  ton  makes  the  fuel  costs 
for  a  round  trip  between  New  York  and  Manila  for  the  vessel  in  question  $4,041.75  less  b}"  way  of  a  Panama 
route  than  via  the  Suez  Canal. 

The  use  of  oil  as  fuel  for  ocean  steamers  has  made  little  more  than  a  beginning,  and  accurate  comparisons 
of  oil  costs  by  different  routes  are  hardly  possible.  Fuel  oil  is  kept  in  stock  at  stations  on  the  Suez  route,  for 
sale  to  such  oil-burning  steamers  as  are  now  run  on  that  route.  California  oU  is  used  by  several  vessels  on  the 
Atlantic  and  Pacific  Coasts  of  the  United  States,  and  some  of  these  oil  burners  will  use  the  Panama  Canal. 
The  large  California,  Texas,  and  mid  continent  oH  fields  are  relatively  near  the  fuel  stations  along  the  Panama 


170 


pana:via  canal  traffic  and  tolls. 


route  and  the  substitution  of  oil  for  coal  ought  to  be  of  more  assistance  to  the  Panama  route  than  to  those 
with  which  it  has  to  compete.  Presumably  Russian  oil  can  be  sold  at  a  relatively  low  price  at  Suez;  but  along 
the  South  African  and  Magellan  routes  there  are  no  nearby  oil  fields  of  present  importance  from  which  stations 
could  be  supplied  with  cheap  fuel  oil. 

The  surest  method  of  keeping  coal  prices  low  at  the  Isthmus  is  for  the  Government,  through  the  canal 
administration,  to  maintain  commercial  coaling  stations  at  Cristobal  and  Balboa.  The  foregoing  discussion 
has  emphasized  the  assistance  which  cheap  coal  at  the  Isthmus  will  give  the  Panama  Canal  in  competing  for 
traffic  free  to  move  by  other  routes.  Government  coaling  stations  will  give  the  Panama  Canal  greater  traffic 
and  larger  revenues. 

COMPARATIVE  COSTS  OP  COAL,  VIA  PANAMA  AND  VIA  SUEZ,  FOR  ROUND-TRIP  VOYAGE  FROM  NEW  YORK  TO 

MANILA.     1912  CONTRACT  PRICES. 


station. 

Tons  pur- 
chased. 

Price  per 
ton. 

Total. 

FOR  THE  KOUND  TEIP  VOYAGE   BETWEEN  NEW  YORK  AND   MANILA  VIA  PANAMA. 

50 
1,060 
320 
375 
900 
1,050 
375 
370 

$3.25 
3.00 
5.00 
6.90 
3.40 
3.40 
6.90 
5.00 

$162.00 

3,150.00 

1,600.00 

2,587.50 

3,060.00 

3,570.00 

2,587.50 

1,850.00 

18,567.00 

FOR  THE  ROUND  TRIP  VOYAGE   BETWEEN  NEW  YORK   AND  MANILA  VIA  SUEZ. 

750 
1,050 
1,000 
700 
275 
700 

3.25 
5.47 
5.23 
5.23 
6.21 
5.47 

2,437.50 

5,743.50 

5,230.00 

3,661.00 

1,707.75 

3,829.00 

1 

22,608.75 

' 

The  industrial  effects  of  the  canal,  moreover,  can  be  made  greater  by  keeping  coal  prices  low  at  the  Isthmus. 
The  countries  bordering  on  the  Pacific  north  and  south  of  Panama  are  mdustrially  undeveloped.  Cheap  coal 
at  Panama  maj'  be  of  great  assistance  to  those  countries  in  building  up  their  industries.  The  development  of 
the  countries  whose  trade  wall  be  handled  tlu-ough  the  canal  will  increase  the  canal's  traffic  and  revenues.  Cheap 
coal  at  Panama  will  accomplish  as  much  as  low  tolls  might  in  building  up  the  industries  of  the  countries  whose 
trade  will  be  tributary  to  the  canal.  The  fact  need  not  be  pointed  out  that  the  sale  of  coal  at  cost  wiU  impose 
no  burden  upon  the  United  States  Government,  while  low  tolls  or  a  reduction  in  toUs  wHl  necessarily  lessen 
the  revenues  obtained  from  the  operation  of  the  canal. 

It  will  be  desirable  for  the  United  States  Government  to  maintain  coaling  facilities  at  the  canal  to  supply 
the  'Navy.  Tlie  sale  of  coal  to  merchant  vessels  will  simply  require  larger  storage  accommodations  and  more 
loading  and  unloading  machinery.  About  1,250,000  tons  of  coal  are  now  annually  sold  at  Port  Said,  and,  in 
addition,  a  small  amount  is  sold  at  Suez.  The  traffic  of  the  Suez  Canal  is  much  larger  at  present  than  that  of 
the  Panama  Canal  wiU  probably  be  during  the  early  years  of  its  operation,  but  the  coal  sales  at  the  Panama 
Canal  would  doubtless  be  heavy.  Practically  every  vessel  passing  tlirough  the  Panama  Canal  wiU  take  on  coal 
at  Cristobal  or  Balboa,  for  the  reason  that  there  are  no  near-by  stations  vnth  cheap  coal  to  the  northward  and 
southward.  Vessels  west  bound  tlu-ough  the  Panama  Canal  avUI  fill  their  bunkers  for  the  long  runs  beyond, 
just  as  vessels  east  bound  through  the  Suez  Canal  lay  in  a  fuU  supply  of  fuel  either  at  a  Mediterranean  station 
or  at  Port  Said. 


CHAPTER  XI. 

RELATION  OF  TOLLS  TO  THE  VOLUME  OF  TRAFFIC 
THROUGH  THE  CANAL. 

TOLLS  THE  TRAFFIC  WILL  BEAR. 


CHAPTER  XI. 

EELATION    OF    TOLLS    TO    THE    VOLUME   OF  TRAFFIC   THEOUGH  THE   CANAL.     TOLLS    THE  TRAFFIC 

WILL  BEAR. 


INTRODUCTION. 

The  volume  of  traffic  through  the  canal  must  necessarily  be  affected  by  the  tolls  levied  upon  shipping  and 
passengei-s.  Whatever  considerations  other  than  those  of  revenue  may  be  given  weight  in  deciduig  what  the 
tolls  shall  be,  it  is  essential  that  the  charges  shall  be  well  mthin  what  the  traffic  ■\\ill  bear.  The  Government's 
revenue  pohcy  must  not  seriously  limit  the  use  of  the  canal  by  the  commerce  of  the  world. 

The  traffic  of  the  Panama  Canal  may  be  divided,  for  the  purposes  of  this  inquiry,  into  two  parts,  (1)  that 
which  originates  or  terminates  clearly  %vithui  the  zone  of  the  canal's  influence — commerce  that  is  certain  to  use 
the  canal — and  (2)  that  which  hes  on  the  border  of  the  canal's  sphere  of  influence  and  which  may  choose  between 
the  Panama  route  and  routes  through  the  Straits  of  Magellan,  around  the  Cape  of  Good  Hope,  or  by  way  of 
Suez.  The  Panama  route  vrHl  have  a  monopoly  of  the  traffic  of  Hawaii  and  of  the  west  coast  of  North  and 
South  America  with  the  exception  of  a  small  part  of  the  trade  of  southern  Chile,  but  it  so  happens  that  the 
marginal  traffic  for  which  the  Panama  Canal  must  compete  with  other  routes  is  of  exceptionally  large  tonnage 
and  value,  comprismg  the  major  share  of  the  commerce  of  Pacific  Asia  and  of  Australasia.  The  ships  engaged 
in  the  trade  of  which  the  Panama  route  has  a  monopolj'  will  comprise  the  larger  share  of  the  canal's  tonnage; 
but  the  marginal  traffic  is  a  prize  so  well  worth  competmg  for  that  it  should  be  given  careful  consideration  in 
fixing  the  tolls  to  be  charged  at  Panama.  The  volume  of  traffic  and  the  commercial  usefulness  of  the  canal, 
as  well  as  the  revenue  obtaijied  from  its  operation,  are  dependent  upon  the  transit  dues. 

The  toUs  at  Panama,  m  so  far  as  they  are  a  charge  for  a  sei-vice,  may  be  made  equal  to  the  money  equivalent 
of  the  services  rendered  by  the  canal  to  the  commerce  that  derives  least  benefit  from  the  shorter  route  afforded 
by  the  canal.  The  function  of  the  canal  is  to  shorten  ocean  routes,  and  its  services  to  trade  and  shipping  may, 
in  general,  be  measured  by  the  saving  it  effects  m  distances  and  in  sailing  time  between  ports.  For  some 
traffic,  distances  will  be  shortened  so  much  as  to  make  certaui  that  the  canal  will  be  used;  the  traffic  of  some 
sections  will  unquestionably  not  take  the  Panama  route;  while  the  trade  of  some  regions  ^vill  move  by  way 
of  Panama  if  the  toUs  permit. 

Neither  the  tolls  that  shipping  can  pay  for  usmg  the  Panama  Canal  nor  the  limits  that  any  particular 
toU  wdl  give  to  the  canal  trafiic  zone  can  be  deterndned  solely  by  comparmg  distances  via  the  Panama  Canal 
and  alternative  routes.  There  are  other  factors  than  distance  that  mfluence  the  choice  of  routes  followed  by 
ocean  shipping.  Vessels  are  vehicles  of  commerce  operated  to  secure  maximum  profits  for  their  ownei-s,  who 
are  usually  common  carriers,  but  may  be  producei-s  or  merchants  who  own  and  manage  vessels  as  a  part  of 
their  busmess.  Trade  requirements  determme  the  routes  taken  by  ocean  carriei-s.  Often  the  most  profitable 
route  between  the  ports  of  departure  and  ultimate  destination  is  a  circuitous  one  that  will  permit  cargo  to  be 
loaded  and  discharged  at  more  intermediate  ports  than  can  be  reached  by  a  direct  route.  The  possible  effect 
of  trade  requirements  upon  routes  taken  by  vessels  may  be  illustrated  by  reference  to  Cliile  and  Japan.  The 
short  route  from  Europe  and  New  York  to  the  commercially  important  part  of  Chile,  which  is  practically  aU 
north  of  40°  south  latitude,  is  through  the  Panama  Canal;  but  the  trade  of  Punta  Arenas  on  the  Straits  of 
Magellan  wiU  be  large  enough  to  cause  some  vessels  to  be  dispatched  to  Chilean  ports  via  the  Straits  of  Magellan. 
The  distance  from  New  York  to  Punta  Aj-enas  via  the  canal  being  only  700  miles  less  than  the  distance  via 
the  east  coast  of  South  America,  vessels  leaving  New  York  with  fuU  cargoes,  a  part  of  which  is  for  Punta  Aienas, 
may  find  it  more  economical  to  take  the  Atlantic  route  outbound.  From  Punta  Aienas  the  vessels  wiU  proceed 
to  the  ports  along  the  west  coast  of  South  America  and  return  via  the  canal  to  New  York.  For  the  most  part, 
however,  the  commerce  of  South  America  with  both  Europe  and  the  Atlantic-Gulf  seaboard  of  the  United 
States  wiU  be  handled  by  vessels  that  use  the  Panama  Canal  on  both  the  outward  and  home  bound  voyages 

173 


174  PANMIA  CANAL  TRAFFIC  AND  TOLLS. 

Similarly,  the  short  route  from  Japan  to  the  eastern  seaboard  of  the  United  States  will  be  by  way  of  the 
Panama  Canal,  and  vessels  sailing  from  Yokohama  or  other  Japanese  ports  with  full,  or  nearly  full,  cargoes 
will  unquestionably  take  the  Panama  route;  but  such  ships  as  are  obhged  to  leave  Japan  but  partly  loaded 
may  choose  the  route  past  Asia  and  through  the  Suez  Canal  if  the  prospect  of  securing  cargo  at  Chinese, 
East  Indian,  and  Indian  ports  is  better  than  at  ports  of  the  west  coast  of  the  United  States  or  at  foreign  American 
ports.  The  fact  that  a  vessel  under  a  foreign  flag  would  not  be  allowed  to  cany  freight  between  ports  of  the 
United  States  might  also  mfluence  a  ship  to  take  the  Suez  route  from  Japan  to  our  eastern  seaboard. 

The  route  taken  by  vessels  outbound  for  our  Atlantic  coast  from  any  of  the  ports  from  Singapore  and 
Manila  on  the  south  to  Yokohama  on  the  north  will  be  determined  more  by  the  cargo  needs  of  the  vessels  and 
by  the  opportunity  to  obtain,  or  to  discharge  and  load,  cargo  en  route  than  by  the  relative  distances  via  the 
Suez  and  Panama  routes  from  the  Asiatic  port  of  departure  and  the  Anrerican  port  of  destination.  In  a  less 
degree,  the  same  ^vill  be  true  of  vessels  outbound  from  the  Pacific  ports  of  Asia  to  Great  Britain,  HoUand, 
Belgium,  and  Germany. 

The  cost  of  coal  and  the  amount  of  sj^ace  required  for  coal  bunkers  have  a  large  influence  upon  operating 
expenses  and  upon  the  gross  and  net  earnmgs  of  vessels.  Other  things  being  equal,  vessel  ownei-s  will  select 
the  route  upon  which  coal  is  cheapest  and  along  which  coaling  stations  are  nearest  to  each  other.  The  abihty 
to  secure  coal  at  short  intervals  en  route  enables  the  ship  master  to  minimize  bunker  space  and  to  use  a  maximum 
share  of  the  ship's  capacity  for  payitag  cargo.  Lideed,  it  is  often  profitable  for  a  vessel,  saUuig  from  a  port 
at  which  coal  is  relatively  cheap,  to  take  on  a  comparatively  small  amount  of  coal  at  the  beginning  of  the 
voyage,  and  to  buy  coal  at  higher  prices  at  stations  en  route.  When  cargo  is  abundant  and  freight  rates  are 
remunerative,  bunker  spaces  -will  be  kept  as  small  as  practicable.  Steamshij:)  managers  constantly  watch 
fuel  costs,  and  seek  so  to  adjust  the  three  factoi-s  of  cost  of  coal,  quantities  taken  at  stations,  and  the  relation 
of  bunker  and  cargo  spaces  as  to  secure  maximum  profits  from  the  operation  of  their  vessels. 

The  competition  of  the  Panama  and  Suez  Canals  for  the  traffic  of  Pacific  Asia,  the  East  Indies,  and  Austral- 
asia will  be  appreciably  affected  by  the  cost  of  coal  and  the  number  of  stations  along  the  competitive  routes; 
indeed,  the  relative  coal  prices  and  coal  facilities  via  the  Panama  and  alternative  routes  will  have  almost  as 
much  mfluence  as  will  tolls  upon  the  volume  of  traffic  tlirough  the  Panama  Canal.  The  subject  was  deemed 
to  be  of  such  importance  as  to  require  detailed  discussion  and  was  considered  in  the  preceding  chapter. 

Minor  Factors  Affecting  the  Use  of  the  Panama  Canal. 

In  addition  to  the  factors  of  distance,  of  cargo  obtainable  at  ports  of  call,  of  coaling  facUities,  and  of  the 
price  of  coal  at  station  on  the  way,  there  are  such  minor  factors  as  marine-insiu'ance  rates,  climatic  conditions, 
prevaihng  \vinds  and  currents,  and  dangers  from  storms  that  will  influence  the  choice  which  vessels  will  make 
between  the  Panama  Canal  and  some  alternative  route.  Unquestionably,  the  insm-ance  rates  will  be  somewhat 
less  via  Panama  than  via  the  Straits  of  Magellan;  but  what  the  difference  will  be  can  hardly  be  determined  ia 
advance  of  the  opening  of  the  canal.  In  general,  the  climatic  conditions  will  favor  the  Panama  Canal  in  its 
competition  with  the  Suez  Canal.  The  excessive  heat  of  the  Red  Sea  is  liable  to  damage  some  kinds  of  cargo; 
and  it  is  said  that  the  heat  is  such  that  the  stokers  are  unable  to  maintam  the  usual  pressure  m  the  boilers. 
A  vessel's  speed  may  thus  be  reduced  a  knot  or  a  knot  and  a  half  per  hour  for  the  long  rim  of  1,310  miles  from 
Suez  to  Aden.  Vessels  outbound  from  Japan  for  Europe  or  the  Atlantic  seaboard  of  the  United  States  will 
find  favoring  winds  and  currents  across  the  Pacific  and  tlu-ough  the  Panama  Canal  and  opposing  winds  and 
ciu:'rents  for  a  part  of  the  route  in  the  opposite  direction.  Likewise,  the  storms  of  the  North  Pacific  and  the 
Caribbean  are  less  frequent  and  severe  than  those  of  the  Indian  Ocean  and  the  North  Atlantic. 

The  effect  of  these  minor  factors — other  than  insurance  rates — upon  the  choice  of  ocean  routes  will  prob- 
ably not  be  of  much  importance  although  their  influence  will  not  be  negligible.  They  are  mentioned  here  not 
for  the  purpose  of  emphasizmg  them,  but  rather  to  call  attention  to  them  and  to  indicate  how  complex  are  the 
forces  that  determine  the  routes  taken  by  the  sliips  employed  in  the  world's  commerce.  While  distance  is  the 
main  determinant  of  the  choice  of  routes,  the  possible  modifying  effect  of  other  factors  must  constantly  be 
considered. 

In  seeking  the  information  upon  wliich  tliis  discussion  is  based,  special  efforts  have  been  made  to  ascertain 
from  the  managers  of  important  steamsliip  lines  the  probable  routes  over  wliich  their  vessels  wiU  be  operated 
after  the  Panama  Canal  has  been  opened ;  but  even  practical  steamship  men  can  not  fully  determine,  in  advance 


PANMIA  CANAL  TRAFFIC  AND  TOLLS. 


175 


of  actual  experience  in  using  the  canal,  which  routes,  and  which  sequence  of  intermediate  ports,  will  prove  the 
most  profitable  for  their  vessels.  As  is  stated  in  various  parts  of  tliis  report,  there  vnll  be  a  period  of  possibly 
two  years  following  the  opeiaing  of  the  canal  diu-ing  wloich  commerce  will  be  adjusting  itself  to  the  new  routes 
made  possible  by  the  waterway  across  the  Isthmus. 

In  studying  the  relation  of  toUs  to  the  voiiune  of  traffic  through  the  Panama  Canal,  attention  may  be 
centered  upon  the  commerce  of  the  Atlantic  seaboard  of  the  United  States  and  of  Europe  with  the  west  coast 
of  South  America,  wiili  Australasia,  and  with  Pacific  Asia.  The  trade  of  the  west  coast  of  North  America, 
both  with  the  Atlantic-Gulf  seaboard  of  the  United  States  and  with  Exirope  is  so  definitely  witliin  the  canal's 
traffic  zone  that  the  traffic  would  bear  much  higher  toUs  than  it  would  be  wise  or  possible  to  place  upon  the 
shipping  engaged  in  the  commerce  between  the  north  Atlantic  and  either  Southern  Cliile  or  the  coimtries  across 
the  Pacific. 

I.  Relation  of  Panama  Canal  Tolls  to  the  Traffic  of  the  Atlantic-Gulf  Seaboard  of  the  United 
States  with  the  West  Coast  of  South  America. 

The  assistance  given  by  tlie  Panama  Canal  to  the  traffic  between  the  eastern  part  of  the  United  States 
and  the  west  coast  of  South  America  will  be  second  only  to  the  aid  given  to  the  coastwise  commerce  between 
our  two  seaboards.  The  distances  and  the  time  wluch  the  Panama  Canal  will  save  for  vessels  running  between 
the  Atlantic-Gulf  seaboard  of  the  United  States  and  the  ports  of  the  northern  and  southern  sections  of  the 
west  coast  of  South  America  are  indicated  by  the  following  table.  The  reduction  effected  by  the  canal  in  the 
days  of  sailing  time  is  stated  for  vessels  of  9,  10,  12,  14,  and  16  knots  speed,  the  time  allowed  for  passing  through 
the  canal  being,  in  each  case,  one-half  a  day. 

Table  I.— DISTANCES  AND  TIME  SAVED  VIA  THE  PANAMA  CANAL  AS  COMPARED  WITH  THE  STRAITS  OP 
MAGELLAN  BETWEEN  THE  ATLANTIC-GULF  PORTS  OF  THE  UNITED  STATES  AND  THE  WEST  COAST  OF  SOUTH 
AMERICA. 


From  New  York. 

From  New  Orleans. 

To- 

Distance 
saved. 

Days  saved  lor  vessels  of— 

Distance 
saved. 

Days  saved  for  vessels  of— 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 

knots. 

9 
knots. 

10 
knots. 

12 
knots. 

14 

knots. 

16 
knots. 

Milts. 
6,250 
5,139 

3,747 
3,296 

28.4 
23.3 

16.  S 
14.7 

25.2 
20.9 

15.1 
13.2 

21.2 
17.3 
12.5 
10.9 

18.1 
14.8 
10.6 
9.3 

15.7 
12.9 
9.2 
8.1 

Miles. 
7,245 
6,134 
4,742 
4,291 

33.0 
27.9 
21.4 
19.4 

29.7 
25.0 
19.2 
17.4 

24.7 
20.8 
16.0 
14.4 

21.1 
17.7 
13.6 
12.3 

18.4 

15.4 

11.8 

10.7 

The  location  and  trade  of  the  four  cities  of  South  America  fisted  in  the  table  make  them  tyjjical  of  aU 
the  ports  of  the  west  coast  of  that  continent.  Callao,  the  chief  port  of  Peru,  1,346  rmles  from  Panama  and 
2,666  miles  from  the  Straits  of  MageUan,  is  so  located  as  to  make  certain  that  its  commerce  vAth  the  eastern 
seaboard  of  the  United  States  -will  be  able  to  pay  such  toUs  as  may  be  levied  for  using  the  Panama  Canal. 
The  same  may  be  said  of  Iquique  and  Antofagasta,  in  northern  Chile,  the  ports  from  wliich  the  hea\-y  nitrate 
shipments — amounting  in  1911  to  2,500,000  cargo  tons — are  made.  Iquique  is  1,987  miles  from  Panama  and 
2,196  miles  from  the  Straits  of  MageUan.  The  time  saved  by  using  the  Panama  Canal  on  a  trip  from  New  York 
to  CaUao,  for  a  vessel  of  9  knots  speed,  will  be  28.4  days;  for  a  speed  of  10  knots,  25.2;  of  12  Icnots,  21.2; 
of  14  knots,  18.1;  and  of  16  knots,  15.7.  The  saving  effected  by  the  canal  for  the  trip  from  New  York  to 
Iquique  wiU  be,  for  a  vessel  of  9  knots,  23.3  days;  of  10  knots,  20.9  days;  of  12  knots,  17.3  days;  of  14 
knots,  14.8  days;   and  of  16  knots,  12.9  days. 

The  speed  at  which  most  freight  vessels  are  now  operated  is  9  or  10  knots.  As  ships  run  at  these  speeds 
wlQ  save  from  28  to  25  da3"s  by  using  the  canal  between  New  York  and  CaUao,  and  23  to  21  days  between 
New  York  and  Iquique,  they  could  afford  to  pay  heavy  toUs  to  avoid  making  the  trip  via  the  Straits  of  Magel- 
lan— a  toU  much  higher  than  it  would  be  wise  to  charge  for  passing  through  the  canal.  As  wiU  appear  from 
the  foUowing  discussion  a  freight  vessel  can  afford  to  pay  a  toll  equal  to  about  10  cents  per  net  register  ton  for 
each  day  saved. 


176  PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 

The  short  tables  presented  in  tliis  section,  wliich  are  for  the  most  part  compiled  from  the  more  detailed 
tables  in  Cliapter  I,  state  the  number  of  days  which  vessels  can  save  in  making  designated  voyages  by  using 
the  Panama  Canal  instead  of  the  shortest  alternative  route;  and,  in  order  to  determine  what  tolls  would  be  the 
money  equivalent  of  the  saving  in  time  effected  by  the  canal,  it  is  necessary  to  know  the  per  diem  operating 
cost  of  vessels  wlule  they  are  at  sea  en  route  from  port  of  departure  to  port  of  destination,  i.  e.,  to  know  how 
much  an  o\vner  of  a  shij)  saves  for  each  day's  reduction  in  the  time  of  the  voyage.  This  information  has  been 
supplied  by  several  companies  and  the  data  furnished  give  the  "costs  at  sea"  of  vessels  of  different  sizes,  types, 
and  speeds.  The  items  included  in  per  diem  expenses,  in  the  case  of  vessels  owned  by  those  who  operate 
them,  are  wages,  provisions,  and  coal,  also  a  proportionate  share  of  the  aimual  maintenance,  insurance, 
interest,  and  depreciation  charges.  For  vessels  operated  under  time  charters  (such  vessels  being  manned  and 
provisioned  by  their  owners),  the  payment  per  day  for  the  use  of  the  vessel,  plus  the  daily  fuel  costs  at  sea, 
covers  the  per  diem  operating  expenses. 

There  maj^  be  some  cjuestion  as  to  what  are  a  ship's  expenses  at  sea.  The  outlay  for  wages,  provisions,  and 
fuel  would  of  course  be  included  in  expenses  incurred  while  a  ship  is  en  route  between  ports.  Ought  there 
to  be  included  in  expenses  at  sea  a  share  of  the  annual  maintenance,  insurance,  interest,  and  depreciation  costs 
equal  to  the  ratio  of  the  number  of  days  the  ship  is  en  route  to  the  number  of  days  in  a  year?  It  is  beUeved 
that  per  diem  costs  should  include  a  proportionate  share  of  the  annual  maintenance,  insurance,  interest,  and 
depreciation  charges;  and  that  for  every  day  a  vessel  can  save  by  using  the  Panama  Canal  its  owners  profit 
both  by  a  reduction  in  the  operating  expenses  incurred  for  crew  and  coal  and  by  a  reduction  in  the  time  the 
vessel  has  to  be  employed  in  making  a  voyage  and  thus  in  earning  the  amount  received  for  the  transportation 
service  performed.  A  shortening  in  the  time  at  sea  enables  a  vessel  to  make  more  voyages  in  a  year  and  increases 
the  revenues  from  which  maintenance,  interest,  and  depreciation  charges  must  be  met.  Thus  the  per  diem 
cost  at  sea  (or  the  per  diem  saving  due  to  a  reduction  in  time  at  sea)  ought  to  include  the  outlay  for  wages, 
provisions,  and  coal,  and  the  proportionate  share  of  the  annual  maintenance,  insurance,  interest,  and  depreciation 
charges. 

In  ascertaining  the  per  diem  saving  effected  by  a  reduction  of  a  vessel's  time  en  route  it  is  necessary,  in  the 
case  of  a  vessel  operated  by  its  owners,  to  make  a  special  calculation  to  determine  the  per  diem  maintenance, 
insurance,  interest,  and  depreciation  costs;  but  in  the  case  of  a  vessel  operated  under  a  time  charter  such  a 
calculation  is  not  required.  The  time-charter  rate  paid  by  the  user  to  the  owner  must  reimburse  the  owner 
not  only  for  the  expenses  for  wages  and  provisions  of  the  crew  (the  owner  supphes  and  maintains  the  crew) 
but  also  for  his  capital  outlay.  The  amount  received  by  the  owTier  from  the  user  of  the  sliip  must  cover  main- 
tenance, insurance,  interest,  and  depreciation  as  well  as  wages  and  food.  The  user  of  the  vessel  ordinarily 
supphes  the  fuel.  Thus  the  entire  per  diem  costs  at  sea  (as  defined  above)  of  a  steamer  run  under  a  time 
charter  are  the  amount  paid  for  the  use  of  the  vessel  one  day  plus  the  daily  coal  cost. 

The  following  statements  are  made  by  officials  of  companies  that  have  had  long  experience  in.  the  operation 
of  vessels: 

(a)  A  company  that  has  for  many  years  run  chartered  vessels  between  the  eastern  seaboard  of  the  United 
States  and  the  west  coast  of  South  America  says,  in  regard  to  the  monthly  and  daily  expenses  incurred,  that — 

Time  charter  rates  during  the  period  reviewed  (period  of  6  years  preceding  1911)  have  ranged  from  7s.  3d.  to  8s.  4d.  per  net  register 
ton  per  month.  The  average  or  the  normal  rate  would  be  somewhere  between  7s.  9d.  and  Ss.  The  lower  rate  would  he  consers'ative.  The 
ordinary  high-class  "tramp"  steamer  usually  employed  by  us  in  this  trade  (from  the  eastern  United  States  to  the  west  coast  of  South 
America),  say  2,500/2,800  tons  net  register,  has  consumed  about  30  tons  of  coal  per  steaming  day  on  an  average,  taking  the  different  grades 
of  coal,  including  that  supplied  at  coaling  ports  on  the  voyage,  and  the  average  cost  has  been  about  $4.75  per  ton.  These  steamers  are 
of  the  tyjie  known  as  9-knot  boats,  which  in  actual  performance  falls  somewhat  short  of  this  speed,  but  averaging  about  8|  knots  per  hour. 
On  the  out  and  home  voyage  to  the  north  of  Peru,  which  is  as  far  as  our  service  extends,  say  5|  to  6  months'  time,  the  steaming 
days  would  average  about  100.  Thus,  at  7s.  9d.  hire  per  net  register  ton  (or  say  3s.  per  ton  total  dead-weight  capacity)  per  month,  and 
30  tons  of  coal  per  day,  the  cost  per  steaming  day  would  be  to  the  charterers  .?330,  more  or  less. 

The  above  statement  is  that  during  the  six  years  preceding  1911  the  charter  rate  on  slow  freight  steamers 
between  the  eastern  part  of  the  United  States  and  western  South  America  was  about  8  sliiUings,  or  .$2,  per  net 
register  ton  per  month.  The  vessel  in  question,  of  2,800  tons  net  register,  would  thus  cost  the  charterer  $5,600 
per  month  of  30  days.  This  steamer  at  sea  burns  about  30  tons  of  coal  a  day,  the  average  cost  of  wliich,  during  the 
six  3'cars,  has  been  .14.75  per  ton.  The  charter  rate  amounting  to  $186.66  per  day  plus  the  fuel  cost  of  $142.50, 
or  $329.16.  represents  the  outlay  per  day  for  the  operation  of  the  freight  vessel  in  question.     This  is  equal  to 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS.  177 

11.7  cents  per  net  register  ton  or  about  4.5  cents  per  dead-weight  ton  per  day.  These  vessels  are  of  the  shelter- 
deck  type  and  their  registrj-  is  British.  Their  figures  for  registry  do  not  include  the  space  occupied  by  the 
shelter  deck  and  partly  for  this  reason  the  net  register  tonnage  is  low  in  relation  to  dead-weight  capacity. 

(b)  The  expense  of  owning,  operating,  and  maintaining  in  service  in  the  trade  between  the  two  seaboards  of 
the  United  States  of  three  typical  cargo  steamers  has  been  supphed  by  a  firm  operating  a  relatively  large 
number  of  vessels.  The  per  diem  expenses  as  stated  are  for  the  year  1910  and  include  "victualing  and  man- 
ning, deck  and  engine  supplies,  fuel,  mamtenance,  insurance,  interest,  and  depreciation."  The  vessels  being 
under  the  American  flag,  their  registry  tonnage  is  in  accordance  with  American  rules,  which  give  larger  figures 
than  the  British  rules  do.  The  per  diem  expenses  for  the  three  sliips  which  are  run  at  11  knots  speed  are  as 
follows: 

Steamer  of  3,643  tons  net  register,  coal  burner $372. 20 

Steamer  of  4,016  tons  net  register,  oil  burner 455. 15 

Steamer  of  5,636  tons  net  register,  oil  burner 490. 92 

It  will  be  noted  that  the  per  diem  expense  for  the  first  of  the  three  ships  was  slightly  more  than  10  cents 
per  net  register  ton,  and  that  the  per  diem  outlay  for  the  second  of  the  vessels  noted  was  somewhat  more  than 
11  cents  per  nei  ton,  wliile  the  daily  outgo  for  the  third  aiid  largest  of  the  three  vessels  was  but  8.7  cents.  The 
tonnage  of  the  three  vessels  amounted  to  13,395  net  tons.  The  daily  expenses  of  the  three  vessels  equals 
$1,318.27.  The  net  daily  operating  expenses  for  the  three  vessels  is  therefore  almost  10  cents  per  ton  net 
register,  American  measurement. 

(c)  Another  firm  which  operates  a  large  number  of  vessels  between  the  eastern  seaboard  of  the  United 
States  and  the  west  coast  of  South  America  states  that  the  cost  at  sea  "including  interest,  depreciation, 
■wages,  provisions,  and  coal  is  $204  for  a  steamer  of  2,016  tons  net  register  (British  measurement) — 4,814  tons 
dead-weight  capacity — operated  at  a  speed  of  9  J  knots  per  hour."  The  per  diem  operating  expenses  amount 
to  exactly  10  cents  per  ton  net  register,  British  measurement. 

(d)  Another  company,  operating  a  large  fleet  of  vessels  between  New  York  and  the  west  coast  of  South 
America,  states  that  a  typical,  up-to-date,  high-class  freight  steamer  of  3,013  tons  net  register,  British  meas- 
urement, costs  $328  per  diem  to  operate,  including  wages,  provisions,  coal,  interest,  and  depreciation.  The 
speed  at  sea  averages  10  knots.  This  vessel  is  of  the  shelter-deck  type  and  it  has  a  much  lower  registry  under 
the  British  flag  than  it  would  have  if  it  were  under  the  American  flag.  The  per  diem  expenses  as  given 
amount  to  10.8  cents  net  register  ton.  Tliis  would  be  equivalent  to  somewhat  more  than  4  cents  per  dead- 
weight ton  per  day. 

(e)  A  shelter-deck  freight  steamer  of  2,296  tons  net  register,  British  measurement,  and  5,984  tons  dead- 
weight capacity,  was  run  during  1911  between  New  York  and  the  west  coast  of  South  America  by  the  firm 
referred  to  in  the  preceding  paragraph.  This  vessel  was  operated  under  time  charter  at  the  rate  of  3  shillings 
6  pence  ($0.85)  per  dead-weight  ton  per  month.  The  speed  of  the  vessel  at  sea  is  9i  knots.  The  coal  consumed 
daily  averaged  19  tons,  and  all  of  the  coal  for  the  outbound  voyage  was  taken  on  at  Norfolk  at  a  price  of  $2.75 
per  ton,  trimmed  in  the  bunkers.     The  foregoing  figures  give  the  following  per  diem  cost: 

5,984  tons  dead  weight  X  85  cents=$5,086.40,  divided  by  30  gives  per  diem  charter  coats  of $169.  55 

19  tons  of  coal,  at  |2.75 52.25 

Total  par  diem  costs 221.  80 

For  the  outward  voyage,  the  per  diom  expenses  were  9.6  cents  per  net  register  ton  per  day,  or  about  3.7 
cents  per  dead-weight  ton.  The  higher  coal  costs  for  the  return  voyage  of  this  vessel  would  bring  the  per  diem 
expenses  per  net  register  ton  and  per  dead-weight  ton,  respectively,  somewhat  above  10  cents  and  4  cents. 

A  large  manufacturing  concern,  which  employs  its  own  vessels  to  market  its  products  in  foreign  countries, 
gives  information  regarding  the  per  diem  operating  expenses  for  three  vessels,  two  of  the  shelter-deck  type,  one 
operated  through  tlie  Suez  Canal  to  Japan  and  China,  and  another  by  the  same  route  as  far  as  the  Philippines. 
A  third  vessel  of  the  well-deck  type  was  run  through  the  Straits  of  Magellan  to  the  west  coast  of  South 
America.     In  each  instance  the  per  diem  expenses  are  for  a  round-trip  voyage  made  during  1911. 

(jO  The  two  vessels  operated  through  the  Suez  Canal  are  each  of  2,927  tons  net  register,  British  measure- 
ment, 4,640  gross  register,  8,500  dead-weight  capacity,  and  9,500  tons  capacity  for  measurement  cargo.  The 
vessels  were  operated  at  lOJ  knots  speed  and  had  an  average  coal  consumption  of  38  tons  per  day.     The  per  diem 


178  PANAMA  CANAL  TKAFFIC  AND  TOLLS. 

operating  expenses  of  these  two  ships  averages  $348.86  per  vessel,  or  1 1.9  cents  per  net  register  ton  per  day  or 
4.1  cents  per  dead-weight  ton.  The  shelter-deck  space  not  being  included  in  the  British  measurement,  these 
ships  have  a  relatively  low  net  register  tonnage  as  compared  with  cargo  capacity.  If  measured  by  American 
rules  the  net  register  tonnage  would  be  so  increased  as  to  reduce  the  per  diem  operating  expenses  to  10  cents 
or  less  per  net  ton. 

(g)  The  well-deck  steamer  referred  to  m  the  second  paragraph  above  as  having  made  a  round  trip  between 
New  York  and  the  west  coast  of  South  America  during  1911  has  3,488  tons  net  register,  British  measurement, 
5,409  tons  gross,  8,715  tons  dead-weight  capacity,  and  8,500  tons  capacity  for  measurement  cargo.  This  vessel 
is  operated  at  a  speed  of  10  knots  and  has  a  coal  consumption  of  30  tons  per  day.  The  per  diem  expenses  for 
this  vessel  were  $342.91,  or  about  10  cents  per  net  register  ton  and  4  cents  per  dead-weight  ton. 

In  general  it  may  be  said  that  the  daily  operating  expenses  for  large  freight  vessels  of  the  most  modern 
type  are  less  than  10  cents  per  net  register  ton,  British  measurement;  that  for  freight  steamers  of  average  size 
and  efficiency  the  operating  expenses  are  about  10  cents  per  day  per  net  ton,  and  that  for  the  smaller  and  older 
type  of  freight  vessels  the  expenses  are  11  cents  and  in  some  instances  12  cents  per  net  ton  per  day.  For  vessels 
of  the  shelter-deck  type  the  average  will  usually  be  over  10  cents  per  net  ton  British  measurement  and  slightly 
under  10  cents  per  ton  American  and  Suez  measurements.  "Well-deck"  vessels  have  nearly  the  same  net  ton- 
nage by  both  British  and  American  measurements.  Taking  ships  as  they  run,  the  average  expense  of  main- 
tauiing  a  10-knot  freight  ship  m  service  is  approximately  10  cents  per  day  per  net  ton,  American  measurement, 
and  somewhat  under  10  cents,  Suez  measurement. 

The  foregoing  figiu-es  regarding  per  diem  costs  are  in  every  case  for  freight  vessels,  some  of  them  being 
owned  by  the  company  using  them,  others  being  operated  under  time  charters.  The  daily  expenses  of  a  passenger 
ship  are  necessarily  much  higher  than  for  a  freight  vessel.  Passenger  steamers  must  be  operated  at  a  higher  speed 
than  freight  vessels,  and,  as  is  well  known,  any  increase  in  the  speed  of  a  vessel  requires  more  than  a  proportional 
addition  to  expenses.  For  a  vessel  operated  over  a  given  route,  as  between  New  York  and  the  west  coast  of 
South  America,  the  higher  its  speed  the  less  time  it  can  save  by  using  the  Panama  Canal  instead  of  a  longer 
route,  but  the  actual  economy  due  to  usmg  the  canal  is  gi-eater  in  the  case  of  a  passenger  ship  than  in  the  case 
of  a  freight  vessel.  This  is  true  not  only  because  per  diem  expenses  increase  more  rapidly  than  speed  is  aug- 
mented, but  also  because  a  passenger  vessel  requires  a  much  larger  daily  outlay  while  at  sea  than  a  freight 
vessel  does.     A  passenger  ship  is  comparable  to  a  floating  hotel,  a  fi-eight  vessel  to  a  floating  warehouse. 

The  expenses  incurred  by  the  Panama  Railroad  Steamship  Co.  for  maintaining  the  Cristohal  in  service  for 
six  round  voyages  between  New  York  and  Colon,  made  during  194  days  of  1911,  amounted  to  $729.93  per  day. 
This  includes  the  following  items:  Superintendence,  wages  of  crew,  fuel,  lubrication,  stationery,  subsistence, 
stores  for  departments,  other  operations,  and  depreciation.  Expenses  incurred  while  the  ship  is  at  terminals 
are  not  included;  but  the  ship  is  made  to  bear  its  proportionate  share,  while  at  sea,  of  the  office  supeiintendence 
expenses.  The  Cristobal  is  of  6,195  tons  net  register  and  9,606  gross,  American  measurement.  It  is  operated 
at  an  average  speed  at  sea  of  12  knots,  with  a  per  diem  expense  of  11.7  cents  per  net  register  ton  per  day. 

The  steamship  Panama,  of  the  Panama  Railroad  Steamship  Co.'s  fleet,  had  per  diem  expenses  of  $866.05 
on  an  average,  during  6  round  voyages  made  during  147  da^^s  of  1911.  The  items  of  expense  are  the  same  as 
those  of  the  Cristohal  as  listed  in  the  preceding  paragraph.  This  vessel  is  of  4,193  tons  net  register  and  5,666 
gross  register,  American  measurement.  Its  speed  at  sea  averages  14^  knots  and  the  per  diem  expenses  equal  20 
cents  per  net  register  ton.  This  vessel,  which  is  only  two-thirds  the  size  of  the  Cristohal,  carries  twice  as  many 
passengers  and  is  operated  2J  knots  per  hour  faster  than  the  Cristohal.  For  these  reasons  its  daily  expenses  per 
net  register  ton  are  70  per  cent  greater. 

It  is  stated  above,  in  Table  1,  that  a  vessel  of  10-knots  speed  can  reach  Coronel,  Chile,  from  New  York  in 
13.2  days  less  time  via  Panama  than  via  the  Straits  of  Magellan,  and  it  is  thus  evident  that,  as  far  as  distance 
and  time  control  the  route  taken,  vessels  of  10  knots  speed  and  per  diem  expenses  of  10  cents  per  net  ton 
could  be  charged  a  toU  of  about  $1.30  per  net  ton,  American  measurement,  without  their  being  diverted  to  the 
route  through  the  Straits  of  Magellan.  New  Orleans  and  the  other  Gulf  ports  are  so  much  nearer  than  New 
York  to  the  Panama  Canal  that  the  traffic  between  the  Gulf  seaboard  of  the  United  States  and  western  South 
America  will  derive  greater  benefit  from  the  canal,  and  thus  can  bear  higher  tolls,  than  the  traffic  between  New 
York  and  the  seaports  south  of  Panama.  What  is  true  of  New  York  as  I'egards  possible  canal  tolls  on  traffic 
with  western  South  America  is  true,  in  a  larger  measure,  of  New  Orleans. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  179 

The  first  of  the  estimates  above  given  (par.  a)  of  per  diem  costs  of  maintaining  vessels  in  service  refers  to  a 
vessel  operated  under  a  time  charter.  The  rates  paid  by  the  charterer  to  the  owner  of  the  vessel  cover  all 
expenses,  except  coal,  that  can  be  charged  against  a  vessel  during  the  time  it  is  at  sea.  A  freight  vessel  of  2,800 
tons  net  register  with  per  diem  expenses  of  $330 — including  wages,  provisions,  coal,  maintenance,  insurance, 
interest,  and  depreciation — could  afford  to  pay  a  toll  of  $1.18  per  ton  net  register  to  effect  a  saving  of  10 
daj's  in  length  of  voyage.  Being  operated  at  9  knots  speed,  tliis  vessel  would  save  16.8  days  in  sailing  time 
by  the  use  of  the  canal;  and  this  would  be  equivalent  to  a  toU  of  $2.04  per  net  ton  as  measured.  It  is 
evident  that  a  freight  vessel,  such  as  is  referred  to  in  the  first  of  the  above  estimates  as  to  per  diem  costs,  would 
hardly  use  the  Straits  of  Magellan  for  the  commerce  between  the  eastern  part  of  the  United  States  and  any 
part  of  the  west  coast  of  South  America.  For  a  point  as  far  south  as  Coronel  a  vessel  of  9  knots  speed  would 
save  14.7  days  on  the  voyage  from  New  York  by  using  the  canal  instead  of  the  Straits  of  Magellan. 

The  first  of  the  three  vessels  mentioned  (par.  h)  in  the  second  estimate  of  per  diem  expenses — a  steamer 
of  3,643  tons  net  register  vnih  per  diem  expenses  of  $372.20 — could  pay  a  toU  of  $1.40  per  net  register  ton  to 
effect  a  reduction  of  13.7  days  in  sailing  time  at  11  knots  speed  between  New  York  and  Valparaiso. 

The  second  of  these  three  vessels  (par.  i)  could  pay  a  toU  of  $1.55  per  net  ton  to  save  13.7  daj^s  time, 
while  the  third  and  largest  of  the  three  vessels  could  pay  a  toU  of  $1.19  to  reduce  its  sailing  time  13.7  days. 
It  is  thus  evident  that  these  vessels  when  operated  at  1 1  knots  per  hour  in  the  trade  between  the  eastern  part 
of  the  United  States  and  South  America  would  prefer  the  canal  route,  although  the  toUs  charged  were  from 
$1.19  to  $1.55  per  ton  net  register. 

The  estimate  of  per  diem  expenses  presented  above  in  paragraph  c  refers  to  a  steamer  of  2,016  tons  net 
register,  operated  at  9^  knots  per  hour,  the  per  diem  expenses  being  $204,  including  wages,  provisions,  coal, 
mterest,  and  depreciation.  Such  a  vessel  would  save  about  14  days' time  by  using  the  canal  instead  of  the 
Straits  of  Magellan  between  New  York  and  Coronel,  and  as  the  vessel's  per  diem  expenses  are  about  10  cents 
per  net  ton,  it  would  find  the  use  of  the  canal  economical  mth  the  tolls  as  high  as  $1.40  per  ton  net  register, 
'British  measurement. 

The  vessels  referred  to  in  paragraphs  d,  e,  and /are  of  the  shelter-deck  type,  while  the  one  mentioned  in 
(paragraph  ^  is  a  well-deck  vessel,  and  are  of  British  measurement.  Their  per  diem  expenses  average  about  10 
cents  per  net  ton.  One  of  the  vessels  is  operated  at  a  speed  of  9J  knots,  one  at  lOJ  knots,  the  other  two  at  10 
Iknots.  These  are  typical  of  the  freight  vessels  that  are  now  employed  in  the  trade  between  the  eastern  sea- 
feoard'bf  the  United  States,  the  Orient,  and  the  west  coast  of  South  America,  and  they  probably  represent 
jhe, class  of  freighters  that  will  be  most  largely  used  in  that  trade  after  the  canal  is  in  service. 

The  per  diem  expenses  of  vessels  carrying  both  freight  and  passengers  are,  as  stated  above,  necessarily 
higher  than  the  daily  outlay  for  freight  vessels  even  when  the  passenger  ships  are  run  at  the  same  speed  as  the 
vessels  carrying  only  cargo.  Inasmuch  as  it  is  necessary  to  maiutam  a  higher  speed  for  the  passenger  than 
for  the  freight  service,  passenger  vessels  can  afford  to  pay  relatively  high  tolls  for  a  comparatively  small  reduc- 
tion in  the  time  of  the  voyage.  Such  being  the  case,  it  is  certain  that  all  passenger  vessels  operated  between 
the  United  States  and  the  west  coast  of  South  America  and,  as  the  evidence  presented  below  will  show,  also 
passenger  vessels  between  Europe  and  the  west  coast  of  South  America  will  use  the  Panama  Canal  instead  of 
the  route  through  the  Straits  of  Magellan. 

This  brief  analysis  indicates  that  it  is  probable  that  all  the  vessels  operated  between  the  eastern  seaboard 
of  the  United  States  and  western  South  America  will  take  the  Panama  route  instead  of  the  one  through  the 
Straits  of  Magellan  unless  traffic  at  Puuta  Arenas  upon  the  Straits  of  Magellan  shall  prove  to  be  important 
enough  to  cause  some  ships  to  be  dispatched  outbound  or  inbound  via  the  Straits.  For  reasons  that  will  be 
discussed  in  considerkig  the  traffic  of  Europe  with  the  west  coast  of  South  America,  it  is  not  probable  that 
any  considerable  share  of  the  commerce  of  the  xVtlantic-Gulf  coast  of  the  United  States  with  western  South 
'America  would  be  diverted  from  the  Panama  Canal  by  tolls  equal  to  those  levied  at  Suez. 

II.  Relation  of  Panama  Canal  Tolls  to  the  Traffic  Between  Europe  and  the  West  Coast  of  South 

America. 

The  assistance  which  the  Panama  Canal  will  render  the  commerce  of  Europe  with  the  west  coast  of  South 
America  will  be  less  than  that  derived  by  the  trade  of  the  Atlantic-Gulf  seaboard  of  the  United  States  with 
Pacific  South  America.  As  ships  from  Europe  must  cross  the  Atlantic  and  practically  pass  by  the  United 
States  on  the  way  to  Panama,  the  Canal  route  reduces  the  distances  and  sailing  time  from  Europe  to  western 


180 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


South  America  by  smaller  percentages  than  it  does  the  distances  and  time  from  the  eastern  seaboard  of  the 
United  States  to  points  south  of  Panama.  The  actual  reduction  in  distances  and  sailing  time  which  the  use 
of  the  canal,  instead  of  the  Straits  of  Magellan,  route  will  accomplish  for  voyages  from  representative 
European  ports  to  ports  in  the  northern,  central,  and  southern  sections  of  the  west  coast  of  South  America  is 
indicated  by  Table  II . 

Table  II.— DISTANCES  AND  TIME  SAVED  VIA    THE    PANAMA    CANAL    AS    COMPARED    WITH    THE    STRAITS    OF 
MAGELLAN  BETWEEN  EUROPEAN  PORTS  AND  THE  WEST  COAST  OF  SOUTH  AMERICA. 


From  Liverpool. 

From  Antwerp. 

From  Gibraltar. 

To— 

Days  saved  for  vessels  of— 

Days  saved  for  vessels  of— 

Days  saved  for  vessels  of- 

Distance 
saved. 

Distance 
saved. 

Distance 
saved. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

Miles. 

mies. 

Miles. 

Callao 

4,043 

18.2 

16.3 

13.5 

11.5 

10.0 

3,905 

17.6 

15.8 

13.1 

11.5 

9.7 

3,327 

14.9 

13.3 

11.0 

9.4 

8.1 

Iquique 

2,932 

13.1 

11.7 

9.7 

8.2 

7.1 

2,794 

12.4 

11.1 

9.2 

7.8 

6.8 

2,216 

9.7 

8.7 

7.2 

6.1 

5.2 

Valparaiso . 

1,540 

6.6 

5.9 

4.8 

4.1 

3.5 

1,402 

6.0 

5.3 

4.3 

3.5 

3.1 

824 

3.3 

2.9 

2.3 

1.9 

1.6 

Coronel 

1,089 

4.5 

4.0 

3.3 

2.7 

2.3 

951 

3.9 

3.4 

2.8 

2.3 

1.9 

373 

1.2 

1.0 

0.8 

0.6 

0.5 

With  per  diem  expenses,  including  wages,  provisions,  coal,  maintenance,  interest,  and  depreciation,  of 
freight  steamers  of  10  knots  speed,  of  about  10  cents  per  ton  net  register,  will  the  traffic  of  Europe  with  western 
South  America  north  of  the  agricultural  jiortion  of  Cliile,  the  chief  port  of  which  is  Valparaiso,  be  diverted 
from  the  Panama  Canal  bj'  a  toU  of  $1.20 — the  Suez  rate  after  January  1,  1913 — per  net  ton?  The  nitrate 
ports  of  northern  Chile,  Iquique  and  Antofagasta,  from  which  the  exports  of  nitrate  in  1910  amounted  to 
2,500,000  cargo  tons  (500,000  tons  to  the  United  States  and  2,000,000  tons  to  Europe),  for  the  transporta- 
tion of  wliich  more  than  1,000,000  tons  net  register  of  sliips  were  required,  are  witliin  the  canal's  traffic  zone. 
Vessels  of  9  and  10  knots  speed  ^viU  save  from  11  to  13  days  by  taking  the  canal  route  from  Liverpool  and 
Antwerp  to  Iquique  and  9  to  11  days  to  Antofagasta  (224  miles  south  of  Iquique);  and,  with  per  diem  sea 
expenses  of  10  cents  per  net  register  ton,  vessels  bound  for  Iquique  would  save  from  $1.10  to  $1.30  by  takuig 
the  canal  en  route  to  and  from  Iquique.  Between  Antofagasta  and  Liverpool  and  Antwerp  the  shorter  dis- 
tance via  the  canal  route  would  save  a  vessel,  ^nth  per  diem  expenses  per  net  ton  of  10  cents,  from  $0.81  to 
$0.99.  It  will  be  understood  that  these  savings  are  only  those  due  to  reducing  the  number  of  days  sailing 
and  do  not  include  other  possible  economies  to  be  secured  by  taking  the  Panama  route. 

The  trade  of  central  Chile  with  Euroi)e  in  exports  and  imports,  wliile  not  so  large  in  tonnage  as  the  nitrate 
traffic,  is  important.  The  Panama  Canal  will  shorten  the  route  from  Liverpool  to  Valparaiso  6.6  days  for 
9-knot  sliips  and  5.9  days  for  vessels  of  10  knots  speed.  The  saving  in  time  from  Antwerp  wiU  be  6  da3's  for 
9-knot  steamers  and  5.3  days  for  those  of  10  loiots.  Panama  tolls  ranging  from  53  to  82  J  cents  per  net  register 
ton  would,  if  no  other  factors  were  involved,  offset  the  adA^antages  which  freight  vessels  of  9  and  10  knots 
speed  would  secure  by  the  reduction  in  the  length  of  the  route  between  Valparaiso  and  Liverpool  and  Antwerp. 

The  shorter  distance  via  Panama  is  only  one  of  three  factors  that  will  cause  vessels  from  Europe  to  Chile 
to  take  the  Panama  route  instead  of  the  one  by  way  of  the  Straits  of  Magellan.  The  Panama  route  offers 
greater  trade  opportunities. 

Vessels  do  not  ordinarily  proceed  du-ectly  from  Europe  to  Valparaiso  ■wdthout  calling  on  the  way  to  discharge 
and  load  cargo;  nor  do  vessels  other  than  those  having  fuU  cargoes  of  grain  sail  from  Valparaiso  direct  for 
Europe.  For  the  most  part,  ships  trading  between  Europe  and  central  Chile  call,  either  on  the  outbound  or 
homebound  trip,  or  possibly  on  the  vo3'age  in  each  direction,  at  several  west  coast  South  American  ports.  At  the 
present  time  vessels  approach  the  west  coast  of  South  America  via  tlie  Straits  of  Magellan  and  proceed  north- 
ward, toucliing  at  such  ports  as  their  traffic  may  require  and  return  via  the  same  route  to  Europe. 

Wlaen  the  canal  is  opened  the  natural  approach  to  the  trade  of  the  west  coast  of  South  America  AviU  be 
via  Panama  instead  of  tlirough  the  Straits  of  Magellan.  There  is  practically  no  traffic  on  the  west  coast  of 
South  America  south  of  Valdi\na,  which  is  1,000  miles  north  of  tlie  Straits  of  Magellan,  and  comparatively  little 
south  of  Valparaiso,  which  is  1,433  miles  from  the  Straits.    A  vessel  has  a  long  run  from  the  Straits  of  Magellan 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS.  181 

before  reaching  important  trade  centers,  wliUe  if  the  Panama  route  is  taken  a  call  may  be  made,  to  mention 
only  a  few  large  ports,  at  Buenaventura,  Colombia,  which  is  about  350  miles  south  of  the  canal;  at  Guayaquil, 
Ecuador,  793  miles  from  Panama;  at  Callao,  Peru,  500  miles  farther  south;  and,  as  the  vessels  proceed  south, 
at  Mollendo,  Iquique,  Antofagasta,  Coquimbo,  Valparaiso,  Coronel,  Valdivia,  and  various  other  Chilean  ports. 

The  third  factor  favoring  the  Panama  route  for  shipping  engaged  in  the  trade  between  Europe  and  Chile 
is  the  lower  fuel  cost  for  voyages  from  Europe  out  to  Chile  and  return  via  Panama  than  by  way  of  Magellan. 
The  trip  via  Magellan  requires  more  coal,  and  the  prices  of  coal  at  stations  along  the  route  are  much  higher 
than  at  Panama  or  at  stations  along  the  Panama  route.  Careful  calcidations  based  upon  the  coal  required  by 
a  10-knot  freight  steamer,  whose  daily  coal  consumption  is  known  to  average  30  tons,  shows  that  on  a  round- 
trip  voyage  from  Liverpool  to  Valparaiso  the  fuel  expenses  incurred  would  be  about  .19,300  in  excess  of  the 
cost  of  coal  on  a  round  trip  by  way  of  Panama.  The  saving  in  fuel  expenses  alone  would  about  equal  the 
amount  of  tolls  which  this  vessel  would  have  to  pay  for  passing  through  the  canal  on  its  outbound  and  return 
voyages. 

At  Valdivia,  wliich  is  40°  south  of  the  Equator  and  practically  at  the  southern  margin  of  the  traffic  of 
Chile,  a  vessel  is  about  equally  distant  from  Liverpool  \'ia  the  Straits  of  Magellan  and  the  Panama  Canal,  the 
distance  being  slightly  less  via  ^lagellan.  If  the  vessel  has  a  fuU  cargo,  the  route  to  the  south  tlirough  the 
Straits  may  be  taken;  but  if  the  shipmaster  desires  to  secure  cargo  at  intermediate  ports,  the  route  northward 
along  the  coast  and  through  the  Panama  Canal  \vi]l  be  selected.  As  is  pointed  out  in  the  chapter  on  coal 
prices  via  the  Panama  Canal  and  other  routes,  the  cost  of  coal  along  the  Atlantic  coast  of  South  America  will 
be  high,  much  higher  than  at  Panama.  A  vessel  en  route  from  southern  Chile  to  Europe  can  save  nearly  enough 
in  coal  costs  by  taking  the  Panama  route  to  pay  the  canal  tolls. 

Wliile  some  of  the  commerce  of  central  Clule  with  Europe  wiU  be  handled  via  the  Straits  of  Magellan,  it 
seems  probable  that  the  larger  share  \\'ill  be  carried  by  vessels  operated  through  the  Panama  Canal  and  up  and 
down  the  west  coast  of  South  America,  even  though  the  tolls  at  Panama  are  liigher  than  the  theoretical 
saving  effected  by  the  canal  in  shortening  distances.  The  trade  opportunities  along  the  west  coast  of  South 
America  and  the  cheap  coal  at  Panama  will  draw  to  the  canal  route  the  trade  between  Chile  and  Europe. 

In  the  table  giving  the  tonnage  of  vessels  that  would  have  used  the  Panama  Canal  in  1909-10,  it  is  assumed 
that  aU  of  the  com_naerce  of  Europe  with  the  west  coast  of  South  America  would  have  taken  the  canal  route. 
There  \y\ll  be  some  share  of  it  handled  tlirough  the  Straits,  but  the  tonnage  taking  that  route  vnB.  be  comparatively 
small.  It  is  not  deemed  necessary  to  make  an}'  reduction,  on  account  of  the  traffic  through  the  Straits  of  Magellan, 
from  the  3,148,400  tons  net  register  of  vessels  that  were  found  to  be  engaged  during  1909-10  in  the  trade  of 
Europe  with  the  west  coast  of  South  America.  A  further  justification  for  this  decision  is  the  fact  that  in  order 
to  make  certain  of  eliminating  all  duphcations  from  the  records  kept  by  European  countries  of  the  entrances 
and  clearances  of  vessels  engaged  in  their  commerce  Avdth  western  South  Ajnerica  the  oflacial  figures  were  reduced 
from  4,185,457  tons  to  3,148,400.  In  making  tliis  large  reduction  it  was  thought  best  to  err  on  the  side  of 
cutting  out  too  much  rather  than  on  the  side  of  accepting  too  large  a  tonnage  of  available  canal  traffic.  When 
one  considers  the  volume  and  bulkj-  character  of  the  mineral  and  agricultural  exports  of  the  countries  of  western 
South  America,  it  seems  probable  that  3,148,400  tons  net  register  is  a  conservative  statement  of  the  entrances 
and  clearances  of  sliipping  emploj'-ed  in  1909-10  between  Europe  and  the  Pacific  ports  of  South  America. 

III.  Relation  of  Panama  Canal  Tolls  to  the  Traffic  Between  the  Atlantic-Gulf  Seaboard  of  the 
United  States  and  Australia  and  New  Zealand. 

The  effect  which  the  Panama  toUs  may  have  on  the  use  of  the  American  canal  by  the  trade  of  Austraha 
and  New  Zealand  with  the  eastern  seaboard  of  the  United  States  and  with  northwestern  Europe  is  a  question 
so  important  as  to  merit  special  consideration.  The  countries  of  Oceania  have  a  large  and  rapidly  gro-ndng 
foreign  trade.  Austraha's  commerce,  valued  at  $550,000,000  in  1909,  had  increased  $200,000,000  during  the 
preceding  decade.  Meanwliile  New  Zealand's  foreign  commerce  had  risen  from  $100,000,000  to  $175,000,000 
in  value.  The  foreign  trade  per  capita  of  Austraha  in  1909  was  $130  and  of  New  Zealand  $170;  the  per  capita 
value  of  the  foreign  commerce  of  the  United  States  is  $35,  a  httle  over  one-fifth  that  of  New  Zealand.  The 
Australasian  traffic  is  a  prize  for  wluch  the  Panama  Canal  may  well  compete. 

The  trade  of  the  eastern  seaboard  of  the  United  States  with  Austraha  and  New  Zealand  in  1910  was  valued 
at  $46,543,000;  in  1900  the  value  was  $27,731,000;  the  gain  for  the  decade  was  nearly  68  per  cent.  In  so  far  as 
distance  is  the  controUing  factor  tliis  rapidly  increasing  conunerce  wiU  use  the  Panama  Canal.  For  the  Aus- 
34998°— 12 13 


182 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 


tralian  commerce  the  Panama  Canal  must  compete  ^vitll  the  Cape  of  Good  Hope  route,  which  is  the  one  now  taken 
from  our  eastern  seaboard  to  Australia,  because  tlie  distances  (from  New  York)  are  practically  the  same  via 
the  cape  as  via  the  Suez  Canal.  The  present  short  route  from  the  Atlantic  coast  of  the  United  States  to  New 
Zealand  is  by  way  of  the  Straits  of  Magellan.  Wlien  the  Panama  Canal  is  opened  the  most  direct  route  -will 
be  by  way  of  the  American  Isthmus.  The  effects  which  the  Panama  Canal  wiU  have  on  the  distances  and 
steaming  time  from  New  York  and  New  Orleans  to  Austraha  and  New  Zealand  are  stated  in  Table  III. 

Table  III.— DISTANCES  AND  TIME  SAVED  VIA  THE  PANAMA  CANAL  AS  CONTRASTED  WITH  ROUTES  VIA  THE 
SUEZ  CANAL,  THE  CAPE  OF  GOOD  HOPE,  AND  THE  STRAITS  OF  MAGELLAN  BETWEEN  THE  ATLANTIC- 
GULF   SEABOARD   OF  THE  UNITED   STATES  AND   AUSTRALASIA. 


From  New  York. 

From  New  Orleans. 

To— 

Days  saved  for  vessels  of— 

Days  saved  for  vessels  of— 

Remarks. 

saved. 

9 
loiots. 

10 
knots. 

12 

knots. 

14 
knots. 

16 
knots. 

saved. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

Adelaide 

Miles. 
1,746 

7.6 

6.7 

5.6 

4.6 

4.0 

Miles. 
3,258 

14.6 

13.1 

10.8 

9.2 

8.0 

Diflerence  between  routes  via  Panama,  Tahiti, 
Sydney,  and  Melbourne,  and  via  St.  Vincent 
and  Cape  of  Good  Hope. 

Melbourne 

2,770 

12.3 

11.0 

9.1 

7.7 

6.7 

4.282 

19.3 

17.3 

14.3 

12.2 

10.7 

Difference  between  routes  via  Panama,  Tahiti, 
and  Sydney,  and  via  St.  Vincent.  Cape  of  Good 
Hope,  and  Adelaide. 

Sydney 

3,932 

17.7 

15.8 

13.1 

11.2 

9.7 

5,444 

24.6 

22.2 

18.4 

15.7 

13.7 

Difference  between  routes  via  Panama  and  Tahiti 
and  via  St.  Vincent,  Cape  of  Good  Hope,  Ade- 
laide, and  Melbourne. 

Wellington... 

2,493 

11.0 

9.9 

8.1 

6.9 

6.0 

3,488 

15.6 

14.0 

11.6 

9.9 

8  6 

Difference  between  routes  via  Panama,  and  Ta- 
hiti and  via  Straits  of  Magellan. 

The  Panama  Canal  will  shorten  the  distance  from  New  York  to  Adelaide  1,746  miles,  and  the  steaming 
time  of  9  and  10  knot  freight  vessels  7.5  and  6.7  days,  respectively.  The  reduction  in  the  case  of  Melbourne 
is  2,770  miles — 12.3  and  11  days — and  for  Sydney  3,932  miles — 17.7  and  15.8  days.  It  is  thus  evident  that 
freight  vessels  of  9  and  10  knots  speed  with  per  diem  expenses  of  10  cents  to  12  cents  per  ton  net  register,  can 
reduce  the  expenses  of  voyages  from  New  York  to  Melbourne  from  $1.10  to  $1.46  per  ton;  and  the  expenses  of 
voyages  from  New  York  to  Sydney  from  $1.58  to  $2.12  per  ton.  Even  in  the  case  of  12-knot  vessels,  which 
are  fast  for  a  strictly  freight  service,  the  Panama  Canal  would  effect  a  saving  of  $0.91  to  $1.08  per  net  vessel 
ton  from  New  York  to  Melbourne  and  of  $1.31  to  $1.57  to  Sydney.  The  traffic  from  our  Atlantic  seaboard 
to  Melbourne  and  Sydney  will  bear  a  relatively  stiff  Panama  Canal  toU. 

The  reduction  in  distance  from  New  York  to  Adelaide,  due  to  the  canal,  is  but  1,746  miles,  and  the  saving 
in  time  for  freight  steamers  ranges  from  7.5  daj-s  for  9-knot  vessels  to  6.7  days  for  those  of  10  knots  and  to 
5.6  days  for  those  of  12  knots.  The  money  equivalents  of  these  reductions  in  time  are  from  $0.56  to  $0.90. 
If  Adelaide  were  the  terminal  port  of  the  route  out  from  New  York,  or  if  Adelaide  were  a  port  whose  trade  was 
carried  in  vessels  that  did  not  regularly  call  at  other  places  in  Australia,  its  traffic  witli  New  York  would  bear 
only  relatively  low  Panama  tolls,  v/ere  it  not  for  the  lower  fuel  costs  by  way  of  Panama.  A  lOi-knot  freight 
steamer  of  38  tons  per  day  average  coal  consumption  while  at  sea  would  save  about  $3,500  by  taking  the 
Panama  route  instead  of  the  one  around  the  Cape  of  Good  Hope  on  a  round  trip  voyage  between  New  York 
and  Adelaide.     This  would  nearly  pay  the  tolls  one  way. 

Steamers  outbound  from  the  United  States  or  Europe  to  Australia  regularly  proceed  to  Sydney,  calling  at 
Adelaide  and  Melbourne  en  route.  Sydney  is  the  most  important  port  of  Australia,  and,  being  but  60  miles 
from  the  Newcastle  coal  fields,  it  is  an  economical  coaling  station.  It  is  the  tolls  wliich  the  vessels  engaged  in 
traffic  of  Sydney  can  afford  to  pay  for  using  the  Panama  Canal,  that  are  the  real  measure  of  the  tolls  that  the 
traffic  of  Adelaide  and  Melbourne  can  bear.  The  fuel  expenses  by  way  of  the  Panama  route  between  New 
York  and  Sydney  are  much  less  than  by  way  of  the  Cape  of  Good  Hope.  For  the  above-mentioned  lOJ-knot 
freight  steamer  the  fuel  costs  for  a  round  trip  voyage  between  New  York  and  Sydney  would  be  about  $6,230 
less  via  Panama  than  via  the  Cape  of  Good  Hope. 

Most  of  the  commerce  between  the  Atlantic  seaboard  of  the  United  States  and  Austraha  is  handled  by 
line  steamers  that  are  now  run  from  New  York  to  Australia  by  way  of  the  Cape  of  Good  Hope  and  back  by 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  183 

the  same  route.  After  the  Panama  Canal  is  opened  these  lines  ■will  be  operated  through  the  canal,  and  for  the 
economies  thus  effected,  relatively  high  tolls  may  be  charged  without  diversion  of  much  traffic  to  the  route 
around  South  Africa. 

Some  cargoes  are  now  taken  out  to  Austraha  in  chartered  vessels,  sail  and  steam.  Saihng  vessels,  whose 
use  after  the  opening  of  the  canal  will  be  infrequent,  vnl\  naturally  go  out  from  the  eastern  coast  of  the  United 
States  around  Africa,  and,  if  cargo  can  be  gotten  in  Australia,  they  wiU  return  around  Cape  Horn.  Chartered 
steamei's  that  are  able  to  secure  full  cargoes  for  the  return  trip  from  Australia  to  the  United  States  will 
undoubtedly  take  the  Panama  route. 

It  can  hardly  be  predicted  what  route  will  be  taken  from  Austraha  to  the  Atlantic  coast  of  the  United 
States  by  chartered  steamers  that  can  not  secure  full  cargoes  in  Australia.  Vessels  leaving  Austraha  in  ballast 
will  be  apt  to  seek  sugar  or  other  cargo  in  the  East  Indies,  but  they  may  cross  the  Pacific  to  take  cargo  from 
the  west  coast  of  South  America  or  even  of  North  America  to  Atlantic  ports  of  the  United  States  or  Europe. 
Chartered  steamers  that  can  secure  in  Austraha  a  partial  cargo  for  the  United  States  and  a  partial  cargo  for 
Europe  ^vill  take  the  Panama  route ;  and  it  may  happen  that  a  vessel  receiving  only  a  partial  cargo  for  Europe 
may  take  the  Panama  route  and  finish  her  loading  at  some  American  port.  Whether  such  a  vessel  takes  the 
Panama,  the  Cape  of  Good  Hope,  or  the  Suez  route  wdU  depend  upon  the  prospect  of  securing  traffic  on  the 
way.  Such  vessels  as  proceed  from  Austraha  to  New  Zealand  to  secure  or  to  complete  cargoes  either  for  the 
eastern  United  States  or  for  Europe  will  select  the  Panama  route  if  the  tolls  are  reasonable. 

All  but  a  small  share  of  the  commerce  between  the  Atlantic-Gulf  seaboard  of  the  United  States  and  New 
Zealand  may  be  expected  to  use  the  Panama  Canal.  The  time  saved  via  Panama  over  the  route  through  the 
Straits  of  Magellan  will  be  11  days  for  9-knot  steamers,  and  9.9  daj's  for  10-knot  sliips.  A  10-knot  ship 
could  afford  to  pay  about  $1,  and  a  9-knot  sliip  $1.10,  per  ton  net  register  to  efl'ect  this  saving  in  time. 
The  fuel  expenses  via  Panama  will  be  as  much  less  than  via  Magellan  as  to  give  the  canal  route  a  decided 
advantage.  Chartered  steamers  outbound  from  Europe  via  the  Suez  or  Cape  route  may,  from  time  to  time, 
approach  New  Zealand  from  Australia,  and  it  is  quite  certain  that  steamers  en  route  via  the  Panama  Canal 
between  the  Atlantic  seaboard  of  the  United  States  and  Austraha  will  call  on  the  outbound  and  inbound  voyages 
at  one  or  more  New  Zealand  ports.  As  far  as  Europe  is  concerned.  New  Zealand  may  be  considered  either  as 
an  outpost  on  the  Suez  or  Cape  routes  bej^ond  Austraha,  or  as  a  way  station  on  the  route  via  Panama  to 
Austraha.  Tliis  observation,  however,  apphes  rather  to  the  traffic  of  line  vessels  than  to  that  of  chartered  ships, 
and  is  only  partly  true  even  of  fine  steamers,  for  the  reason  that  New  Zealand  exports  are  relatively  large  in 
volume  and  include  bulky  commodities  readily  shipped  in  full  cargoes.  Thus  New  Zealand  is  not  to  be  con- 
sidered primarily  as  a  traffic  dependency  of  Austraha  (although  to  some  extent  it  is  such) ;  but  rather  as  a  com- 
mercially autonomous  section  to  and  from  which  traffic  routes  lead.  This  fact  is.  one  that  should  be  considered 
in  discussing  the  use  of  the  Panama  Canal  by  the  vessels  employed  in  the  commerce  of  Europe  with  New 
Zealand. 

In  the  foregoing  discussion  of  the  Panama  toUs  that  the  traffic  between  the  eastern  seaboard  of  the  United 
States  and  Australia  and  New  Zealand  can  afford  to  pay,  the  traffic  to  and  from  New  York — the  typical  North 
Atlantic  port — has  alone  been  considered.  The  assistance  which  New  Orleans  and  other  Gulf  ports  will  derive 
from  the  canal  in  the  trade  with  Australasia  will  be  much  greater  than  the  aid  that  will  be  secured  by  the 
Atlantic  ports.  New  Orleans  will  be  brought  by  the  new  route  from  3,258  to  5,444  miles  nearer  the  principal 
ports  of  Austraha  and  New  Zealand;  and  the  tolls  equivalent  to  such  savings  in  distance  would  much  exceed 
those  that  may  wisely  be  charged  at  Panama. 

IV.  Effect  of  Tolls  upon  Traffic  via  the  Panama  Canal  Between  Europe  and  Australia  and  New 

Zealand. 

The  continent  of  Austraha  hes  just  outside  of  the  traffic  zone  of  the  Panama  Canal,  as  regards  the  trade 
of  Europe.  The  line  passing  through  points  equally  distant  from  Liverpool  via  the  Panama  and  Suez  routes 
runs  just  east  of  Austraha — 150  miles  from  Sydney.  New  Zealand,  however,  is  located  well  within  the  Panama 
Canal's  sphere  of  influence.  (See  Plate  2  at  end  of  volume. )  The  following  table  (Table  IV)  states  the  distances 
from  Livei"pool  to  the  principal  ports  of  Austraha  and  to  Wellington,  New  Zealand,  via  the  Suez  and  Panama 
routes.  The  table  also  gives  the  number  of  days  to  be  saved  by  steamers  in  taking  the  Suez  route  to  Australia 
and  the  Panama  route  to  New  Zealand. 


184 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


Table   rV. 


-DISTANCES   FROM  LIVERPOOL  TO  AUSTRALIA  AND   NEW  ZEALAND  VIA  THE  PANAMA  CANAL  AND 
VIA  THE   SUEZ   CANAL,  AND   DISTANCES  AND   DAYS  SAVED   BY  THE   SHORTER  ROUTE. 


Via— 

Distance. 

Distance 

saved  via 

shorter 

route. 

Days  saved  via  shorter  route  tor  vessels 
of— 

Remarks. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

/Panama . . 
\Suez 

/Panama... 
\Suez 

Panama  .. 
\Suez 

/Suez 

\Panama . . 

mies. 
13,478 
11,142 

12,966 
11,654 

12,385 
12,235 

12,989 
11,425 

mus. 

2,336 

10.8 

9.7 

8.1 

6.9 

6.1 

Via  Aden,  Colombo  and  King  George  Sound. 

Melbourne — 

1,312 

6.1 

5.4 

4.6 

3.9 

3.4 

Via  Aden,  Colombo,  King  George  Sound,  and  Adelaide. 

Sydney 

150 

0.69 

0.62 

0.52 

0.44 

0.39 

Via  Aden,  Colombo,  King  George  Sound,  Adelaide,  and  Melbourne. 

Wellington... 

1,564 

6.7 

6.0 

4.9 

4.2 

3.5 

Via  Panama  and  Tahiti. 

For  the  commerce  of  Australia,  the  Panama  Canal  will  compete  mainly  with  the  route  around  the  Cape 
of  Good  Hope  rather  than  with  the  Suez  Canal.  The  distance  from  the  EngHsh  Charmel  to  AustraUan  ports 
(which  are  located  on  the  south  and  southeastern  sides  of  the  contment)  being  only  1,000  miles  less  xia.  Suez 
than  via  the  Cape,  freight  vessels  practically  always  take  the  Cape  route,  wliile  only  steamers  carrying  passengers, 
mail,  and  express  use  the  Suez  Canal.  Inasmuch  as  there  mil  hardly  be  a  service  of  passenger  steamers  main- 
tained between  Europe  and  Austraha  via  Panama  with  calls  at  American  ports,  the  only  European-Australian 
tonnage  which  the  American  canal  can  expect  to  secure  is  of  cargo  ships  which  for  the  most  part  are  now 
operated  via  Cape  Town.  Nor  is  it  to  be  expected  that  much  of  the  strictly  freight  traffic  between  Europe 
and  Australia  ^vill  use  the  Suez  Canal  until  its  tolls  are  reduced'below  their  present  amount  of  6.75  francs 
($1.30)  per  ton  net  register,  Suez  measurement.  The  rate  is  to  be  6.25  francs  begiiming  January  1,  1913, 
but  that  will  not  cause  much  chversion  of  traffic  to  the  canal  route. 

The  fact  that  Sydney  is  the  ultimate  destination  of  nearly  all  vessels  that  go  out  to  Austraha  from  Europe 
is  of  Grst  importance  in  connection  with  the  possible  use  of  the  Panama  Canal  by  a  portion  of  the  trade  of 
Australia  with  Europe.  A  cargo  vessel  departing  from  Sychiey  for  a  port  on  or  beyond  the  Enghsh  Channel 
will  ordinarily  take  the  Cape  of  Good  Hope  route;  although  it  is  about  850  miles  longer  than  the  route  via 
Panama.  The  time  required  to  make  the  run  from  Sydney  to  the  Enghsh  Channel  would  be  practically  the 
same  by  way  of  Panama  as  by  way  of  Suez,  and  if  either  canal  were  selected  in  preference  to  the  Cape  of  Good 
Hope  route  the  choice  would  probably  be  determined  by  the  tolls  payable  and  the  cost  of  coal  via  the  two 
alternative  canal  routes.  The  fuel  expenses  will  be  somewhat  less  via  Panama.  A  lOJ-knot  freight  steamer 
of  38  tons  per  day  average  coal  consumption  while  at  sea,  making  a  round-trip  voyage  between  Liverpool  and 
Sydney  can  save  somewhat  more  than  a  thousand  dollars  in  coal  costs  by  taking  the  Panama  route  instead 
of  going  by  way  of  the  Cape  of  Good  Hope.  The  tolls  payable  at  Panama  would  be  about  seven  times  that 
amount,  and  it  is  thus  evident  that  traffic  considerations  rather  than  economy  of  fuel  expenses  will  determine 
the  choice  between  the  Panama  and  Cape  of  Good  Hope  routes  for  vessels  making  a  voyage  between  Europe 
and  Sydney. 

It  is  the  vessels  leaving  Austraha  for  Europe  partly  loaded  or  m  ballast  that  will  contribute  most  of  the 
tonnage  of  shippmg  \ising  the  Panama  Canal-  en  route  between  Australia  and  Europe.  Some  of  these  vessels 
will  seek  cargo  at  ilelbourne,  Adelaide,  or  elsewhere  along  the  south  coast  of  Australia  and  proceed  to  Europe 
by  the  Cape  of  Good  Hope.  Other  vessels  will  run  to  the  East  Indies  and  secure  Java  sugar  or  some  other 
cargo  and  pass  on  through  the  Suez  Canal;  while  some  ships  will  continue  the  present  practice  of  crossmg  the 
Pacffic  with  cargoes  of  coal,  or  in  ballast,  or  partly  laden,  to  the  west  coast  of  the  United  States  or  of  Chile, 
where  bulk  cargoes,  varying  with  the  seasons,  can  usually  be  obtained.  The  opening  of  the  Panama  Canal  will 
strengthen  the  reasons  vessels  ^vill  have,  when  clearing  hght  from  Austraha,  to  seek  cargoes  on  the  west  coast  of 
North  and  South  America.  The  canal  will  enlarge  the  exports  from  the  Pacffic  coast  of  America  to  Europe 
and  will  provide  a  shorter  and  more  profitable  route  for  the  enhanced  volume  of  trade. 

Thus,  wliile  it  is  to  be  expected  that  most  of  Europe's  commerce  with  Austraha  will  continue  to  follow-  the 
Cape  of  Good  Hope  and  Suez  routes,  it  is  also  quite  certain  that  as  long  as  the  Suez  tolls  are  not  less  than  those 
at  Panama  some  considerable  share  of  Austraha's  exports  and  of  the  shipping  outbound  from  Austraha  to 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  185 

Europe  will  pass  through  the  Panama  Canal.  In  the  figures  of  tonnage  of  traffic  that  will  use  the  Panama 
Canal,  10  per  cent  of  the  tonnage  of  the  shipping  entering  Europe  from  Austraha  has  been  included. 

The  position  of  New  Zealand  is  such  that  the  use  of  the  Panama  Canal  by  its  commerce  with  Europe  may 
be  largely  influenced  by  the  tolls  charged.  With  the  opening  of  the  Panama  Canal  the  trade  of  Europe  with 
New  Zealand  may  move  by  four  possible  routes.  The  shortest  course  between  Liverpool  and  Welhngton  will 
be  by  way  of  Panama — 11,425  miles  in  length;  the  next  shortest  route  will  be  one  through  the  Straits  of  Magel- 
lan— 11,975  miles  long.  The  distance  via  Suez,  Colombo,  and  Melbourne  is  12,989  and  via  the  Cape  of  Good 
Hope  about  14,000  miles.  The  competition  of  routes  will  be  keen,  but  nearly  all  of  New  Zealand's  exports  to 
Europe  will  naturally  move  either  by  way  of  Panama  or  the  Straits  of  Magellan.  New  Zealand's  exports 
consist  for  the  most  part  either  of  commodities  handled  in  full-vessel  cargoes  or  of  perishable  articles  that 
require  refrigeration,  and  are  certain  to  choose  the  shorter  and  cooler  route.  The  refrigerated  meats  and  fruits 
will  be  carried  by  hne  steamers,  fitted  with  passenger  accommodations  and  operated  back  and  forth  by  a  direct 
route  between  Europe  and  New  Zealand.  The  better  coaUng  facilities  and  cheaper  coal  along  the  Panama 
route,  as  compared  mth  that  through  the  Straits  of  Magellan,  and  the  possibihty  of  engaging  in  the  passenger 
traffic  at  intermediate  ports  make  it  probable  that  regular  hne  vessels  operated  between  Europe  and  New 
Zealand  mil  use  the  Panama  Canal,  although  the  tolls  to  be  paid  are  greater  than  the  saving  effected  by  the 
reduction  in  distance  and  time. 

Vessels  seeking  cargoes  for  Europe  may  be  expected  to  approach  New  Zealand  in  consitlerable  numbers 
from  Australia,  after  having  made  a  charter  voyage  to  that  continent.  If  such  vessels  secure  full  cargoes 
in  New  Zealand  for  Europe  they  will  take  either  the  ^Magellan  or  Panama  route,  with  chances  in  favor  of  the 
latter.  The  fuel  expenses  of  a  10-knot  steamer  of  .30  tons  per  day  average  coal  consumption  wliile  at  sea, 
making  a  round-trip  voyage  between  Liverpool  and  Wellington,  will  be  about  .18,470  less  by  way  of  Panama 
than  via  the  Straits  of  Magellan,  the  saving  in  coal  bills  being. nearly  enough  to  pay  canal  tolls  both  ways. 
The  large  difference  in  favor  of  Panama  is  due  to  the  liigh  cost  of  coal  at  the  stations  along  the  east  coast  of 
South  America. 

Storms  will  be  less  dangerous  by  way  of  the  Panama  route  between  Europe  and  New  Zealand,  and  the 
insurance  rates  will  be  lower  than  via  the  Straits  of  Magellan.  It  is  probable  that  many  chartered  vessels 
from  New  Zealand  to  Europe  will  go  by  way  of  the  Straits  of  Magellan  to  avoid  the  payment  of  Panama 
Canal  tolls.  It  is,  however,  to  be  expected  that  a  large  share  of  the  chartered  vessels  in  both  directions 
between  Europe  and  New  Zealand  will  choose  the  Pauama  route  to  save  fuel  expenses.  Line  vessels  will 
unquestionably  prefer  to  take  the  Panama  route.  Tolls  will  not  divert  them  to  the  Straits  of  Magellan.  In 
discussing  the  tonnage  of  available  Panama  Canal  traffic  it  was  estimated  that  50  per  cent  of  the  tonnage  of 
vessel  movements  between  Europe  and  New  Zealand  would  be  by  way  of  Panama. 

V.  Eelation  of  Canal  Tolls  to  the  Traffic  via  the  Panama  Canal  Between  the  ATLANTic-GtrLF  Sea- 
board OF  THH  United  States  and  Japan,  China,  and  the  Phillipines — The  Countries  Between 
Yokohama  and  Singapore. 

The  eastern  seaboards  of  Asia  and  North  America  are  on  opposite  sides  of  the  northern  Hemisphere.  The 
line  of  80°  west  longitude,  which  runs  close  to  the  Panama  Canal,  sku-ts  the  east  coast  of  Florida  and  passes 
between  Savannah  and  Charleston.  The  corresponding  longitude  on  the  opposite  side  of  the  earth,  that  of 
100°  east  of  Greenwich,  runs  through  the  Malay  Peninsula,  somewhat  west  of  Singapore.  New  England  and 
southern  Clmia  are  opposite;  wliile  the  PhOlipme  Islands  and  central  and  northern  China  are  180°  from  Nova 
Scotia  and  Newfoundland. 

Tliese  facts  would  indicate  that  the  Pacific  seaboard  of  Asia  is  nearer  to  the  Atlantic  coast  of  the  United 
States  via  the  Suez  Canal  than  via  Panama;  but  the  Suez  route,  though  shorter  in  degrees  of  longitude,  is  longer 
in  distance,  because  the  route  by  way  of  Suez  and  Singapore  to  tlie  Orient  lies  in  tropical  and  equatorial  latitudes 
where  the  degrees  are  of  maximum  length,  while  the  course  from  the  Atlantic  shore  of  the  United  States  to 
Pacific  Asia,  via  Panama,  follows  closely  the  great  circle  route  from  the  Isthmus  to  Japan  and  thus  crosses  the 
broad  Pacific  in  northern  latitudes  where  the  degrees  are  relatively  short.  Tlius,  Hongkong  wliich  is  16°  and 
16'  of  longitude  farther  west  of  New  York  than  it  is  east  thereof  is  practically  the  same  distance  fi-om  New  York 
via  the  Panama  and  Suez  routes.  Manila  is  also  about  equally  distant  from  New  York  via  the  alternative 
canal  routes.     From  New  Orleans  and  the  Gulf  ports,  because  of  their  nearness  to  the  American  Istlmius,  all 


186 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


oriental  countries  north  and  east  of  Singapore  are  less  distant  via  the  Panama  route.  Table  V  states  which 
route  is  shorter  in  distance  and  time  from  New  York  and  from  New  Orleans  to  Yokohama,  Shanghai,  Hongkong, 
Manila,  and  Singapore. 

Table  V.— DISTANCES  AND  DAYS  SAVED  BY  THE  PANAMA  OR  THE  SUEZ  CANAL  BETWEEN  THE  ATLANTIC-GULF 
SEABOARD   OF  THE  UNITED   STATES  AND  JAPAN,  CHINA,  THE   PHILIPPINES,  AND   SINGAPORE. 


Via- 

From  New  York. 

From  New  Orleans. 

To— 

Dis- 
tance 
saved. 

Days  saved  for  vessels  of — 

Dis- 
tance 
saved. 

Days  saved  for  vessels  of— 

Remarks. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

9 
knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

Yokohama. . . 

fPanama... 

Milai. 
3,768 

16.9 

15.2 

12.6 

10.7 

9.3 

mies. 
5,705 

25.9 

23.3 

19.3 

16.5 

14.4 

Via  San  Francisco. 

Via  Colombo,  Singapore,  Hongkong 

Shanghai 

/Panama... 

1,876 

8.1 

7.3 

6.0 

6.1 

4.4 

3,813 

17.1 

15.4 

12.7 

10.8 

9.4 

and  Shanghai. 

Via  San  Francisco  and  Yokohama. 
Via  Colombo,  Singapore,  and  Hong- 

1,919 

8.4 

7.5 

6.2 

5.2 

4.5 

kong. 
Via  San  Francisco,  Yokohama,  and 

Hongkong.... 

Isuez 

/Panama... 

18 
41 

Shanghai. 

1,978 

8.6 

7.7 

6.4 

5.4 

4.7 

Via  San  Francisco  and  Yokohama. 

Manila 

Via  Colombo  and  Singapore. 

Via  San  Francisco  and  Yokohama. 

Singapore 

\Suez 

2,484 

11.0 

9.8 

8.4 

6.9 

5.9 

547 

2.0 

1.7 

1.4 

1.1 

.9 

Via  Colombo. 

■  .  The  competition  of  routes  for  the  traffic  between  the  Atlantic  seaboard  of  the  United  States  and  the  Orient 
will  be  solely  between  the  Suez  and  the  Panama  canals.  A  small  tonnage  of  sailing  vessels  will  round  the  Cape 
of  Good  Hope,  but  as  sailing  vessels  will  navigate  neither  canal  and  as  their  use  is  steadily  declining,  they  need 
not  be  considered  in  this  discussion.  Practically  all  of  the  traffic  between  the  Atlantic-GuH  seaboard  of  the 
United  States  and  the  Pacific  ports  of  Asia  wiU  be  handled  by  steamers  following  either  the  Suez  or  Panama 
route.  Which  of  these  two  routes  a  vessel  will  take,  when  outbound  from  an  eastern  port  of  the  United  States 
to  an  Asiatic  port  from  Singapore  to  Yokohama,  or  when  inward  bound  from  eastern  Asia  to  an  Atlantic  or 
Gulf  port  of  the  United  States,  will  be  determined  by  one  or  more  of  several  factors — relative  distances  via 
alternative  routes,  necessity  for  and  prospect  of  securmg  cargo  en  route,  the  coaling  facilities  and  the  cost  of 
fuel  on  the  way,  and  the  tolls  payable  at  Panama  and  Suez. 

Most  of  the  traffic  between  the  Atlantic-Gulf  seaboard  of  the  United  States  and  the  region  from  Singapore 
to  Yokohama  will  be  carried  by  steamship  lines  and  not  by  individual  chartered  vessels.  Vessels  operated 
in  a  line  service  follow  more  fLxed  routes  than  chartered  or  "tramp"  ships  do;  the  ocean  line  must  make  regular 
calls  en  route,  and  it  must  give  a  schedule  sei-vice  at  many  fixed  points  between  its  home  and  terminal  port. 
Thus,  relative  distances  via  alternative  routes  between  the  ports  of  departure  and  destination  can  be  but  one, 
and  that  often  not  the  strongest,  factor  determining  the  choice  of  ocean  highways.  In  a  word,  the  factors 
which  affect  the  route  taken  by  both  chartered  and  line  vessels  are  compUcated. 

This  will  be  particularly  true  of  the  shippmg  that  will  handle  the  commerce  of  the  countries  from  Singapore 
to  Yokohama  with  the  Atlantic  seaboards  of  the  United  States  and  Europe.  As  was  stated  in  the  Isthmian 
Canal  Commission  report  of  1901 : 

From  New  York  and  the  North  Atlantic  ports  of  the  United  States  the  distance  to  the  Philippmes  and  Hongkong  by  the  American 
canal  route  will  not  be  much  less  than  by  Suez;  consequently  the  trade  of  our  eastern  seaboard  with  those  and  other  places  so  nearly 
antipodal  will  be  divided  between  the  easterly  and  westerly  routes.  The  shipper  will  have  the  advantage  of  the  competition  of  the  carriers 
using  the  different  canals.  The  coast  between  Shanghai  and  possibly  Yokohama  on  the  east  and  Smgapore  and  possibly  India  on  the  west 
will  be  traveled  in  both  directions  by  vessels  bound  for  American  ports.  The  overlapping  of  trade  routes  in  the  East  and  the  tendency 
of  vessels  to  follow  the  routes  where  the  greatest  volume  of  traffic  can  be  secured  may  possibly  bring  some  of  the  East  Indian  trade  across 
the  Pacific  and  through  the  American  canal. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  187 

The  actual  routes  which  hne  and  charter  steamers  will  find  most  profitable  to  follow  in  handling  the 
commerce  of  the  eastern  United  States  with  the  Pacific  side  of  Asia  can  not  be  definitely  forecasted  in  advance 
of  the  opening  of  the  Panama  Canal.  The  following  statement  by  one  of  the  managers  of  a  company  which 
acts  as  agents  for  steamship  companies  doing  a  large  busmess  between  New  York  and  the  Orient  suggests  how 
some  vessel  lines  may  be  operated: 

As  regards  the  busmess  that  would  move  from  New  York  by  the  Panama  Canal  which  now  moves  through  Suez,  in  our  opinion  the 
first  consideration  would  be  the  rate  of  canal  dues;  secondly,  the  coaling  facilities  and  the  price  of  bunker  coals  en  route;  and  given  a 
satisfactory  solution  of  these  two  very  important  pointa  the  question  of  distance  alone  would  govern,  and  we  should  probably  operate  our 
far  eastern  trade  in  two  sauces,  directing  the  boats  for  the  Straits  Settlements,  Manila,  and  southern  China  via  the  Suez  Canal  as  here- 
tofore, and  the  Japan  and  Shanghai  boats  by  way  of  the  Panama  Canal. 

This  prophesy  would  indicate  that  the  commerce  between  New  York  and  the  Orient  wiU  so  divide  between 
the  Suez  and  Panama  routes  as  to  locate  the  boundary  of  the  Suez  and  Panama  traffic  zones  between  Hongkong 
and  Shanghai  and  thus  to  associate  the  PhUippine  trade  more  closely  with  the  Suez  than  with  the  Panama 
route;  but  from  what  has  already  been  said  it  is  evident  that  no  such  sharp  line  of  division  can  be  drawn  between 
the  sections  of  the  Orient  that  will  be  commercially  tributary  to  the  Suez  route  and  the  sections  that  wUl  lie 
within  the  Panama  Canal's  sphere  of  influence.  There  wiU  doubtless  be  much  overlapping  in  the  Orient  of 
eastbound  and  westbound  routes  taken  not  only  by  chartered  but  also  by  line  vessels. 

If  the  toUs  at  Panama  are  not  higher  than  at  Suez  the  American  route  will  have  some  advantage  in 
competing  for  the  traffic  of  the  Orient.  Lower  toUs  at  Panama,  however,  would  not  draw  away  from  the 
Suez  Canal  a  large  share  of  the  shipping  that  would,  with  equal  toUs  at  each  canal,  take  the  Suez  route. 
Trafiic  opportunities  via  the  opposing  routes  and  the  relative  costs  of  coal  and  other  necessities  en  route  will 
have  more  influence  than  canal  tolls  in  determining  the  division  of  traffic  between  the  two  canals.  On  the 
1st  of  January  of  1913  the  Suez  toUs  on  loaded  vessels  will  become  6.25  francs  ($1,206)  per  net  ton,  Suez 
measurement,  and  on  vessels  in  baUast  3.75  francs  ($0,723)  per  net  ton.  The  Suez  charges  have  been  reduced 
from  time  to  time  during  recent  years,  and,  in  view  of  the  continued  liigh  profits  of  the  Suez  Co.,  it  is  probable 
that  further  reductions  in  the  toUs  wifl  be  made  in  the  future.  The  Suez  tolls,  of  6.25  francs  per  net  ton, 
amounting  to  about  65  cents  per  ton  upon  cargo  wliich  consists  for  the  most  part  of  commodities  of  high 
value,  do  not  impose  a  heavy  burden  upon  commerce,  and  the  Suez  charges  will  doubtless  be  kept  as  low  as 
those  imposed  at  Panama. 

It  should  be  borne  in  mind,  also,  that  the  Suez  Canal  has  a  firm  hold  upon  most  of  the  trafiic  that  uses  it — 
the  traffic  between  Europe  and  India,  the  East  Indies,  and  the  Far  East.  The  commerce  through  the  Suez 
Canal  to  and  from  the  Atlantic  ports  of  the  United  States  is  of  small  volume  compared  with  the  European 
commerce  that  uses  the  Suez  route.  Such  being  the  case,  the  United  States  can  not  hope,  by  means  of  low 
tolls  at  Panama,  to  divert  a  large  tonnage  from  the  Suez  to  the  American  route.  It  will,  however,  be  desira- 
ble for  the  United  States  to  keep  the  toUs  at  Panama  at  least  as  low  as  they  are  at  Suez  and  to  provide  vessels  at 
Panama  with  coal  and  other  necessaries  at  economical  prices  in  order  thereby  to  insure  bringing  to  the  Panama 
Canal  the  major  share  of  the  commerce  between  the  Atlantic  seaboard  of  the  United  States  and  the  Pacific 
ports  of  Asia  from  Singapore  to  Yokohama;  but  the  increase  in  revenue  that  might  be  secured  at  Panama  by 
charging  low  toUsto  draw  competitive  traffic  away  from  the  Suez  Canal  would  be  much  less  than  the  loss  in  receipts 
resulting  from  the  reduction  of  Panama  toUs  upon  the  large  volume  of  shipping — that  moving  between  the 
Atlantic  and  west  coast  of  the  Americas — by  which  the  Panama  Canal  is  certain  to  be  used.  Indeed,  the  Suez 
Canal  and  the  Panama  Canal  each  has  such  a  well-defined  traffic  zone,  that  neither  can  hope  to  secure  larger 
revenues  by  fixing  its  tolls  with  a  view  to  obtaining  competitive  traffic;  but  while  the  Suez  Canal  can  secure 
none  of  the  traffic  of  the  west  coast  of  the  Americas,  it  is  possible  for  the  Panama  Canal  to  obtain  some  of  the 
commerce  between  North  Atlantic  countries  and  those  of  the  Pacific  side  of  Asia.  Thus,  in  so  far  as  can  be 
done  without  unduly  reducing  the  revenues  derivable  from  the  traffic  using  the  Panama  Canal,  the  competition 
of  the  Panama  route  with  the  Suez  Canal  should  be  aided.  The  surest  and  most  economical  way  to  assist  the 
Panama  route  in  drawing  traffic  from  Suez  is  for  the  Government  of  the  United  States  to  provide  coal  and 
other  supplies  as  cheaply  as  possible  at  Colon  and  Panama. 


188  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

VI.  Relation  of  Canal  Tolls  to  the  Traffic  via  the   Panama  Canal  Between  Europe  and  the 

Countries  East  of  Singapore. 

The  distance  from  Europe  to  the  east  coast  of  Asia  is  shorter  via  Suez  than  by  way  of  Panama.  The  city 
of  Yokohama  is  694  miles — the  equivalent  of  two  and  one-half  dnjs'  saUing  for  a  vessel  of  moderate  speed — 
nearer  Liveipool  by  the  Suez  than  by  the  Panama  route.  Plate  2  at  the  end  of  this  volume  locates  points 
equally  distant  from  Liverpool  via  Panama  and  Suez.  The  advantage  which  the  Suez  Canal  has,  in  distance 
and  sailing  time,  over  the  Panama  Canal  for  the  commerce  between  northwestern  Europe  and  Pacific  Asia  is 
illustrated  by  Table  VI,  which  gives  the  saving  effected  by  the  Suez  Canal  from  Liveq:)Ool  to  the  chief  commer- 
cial centers  of  the  Orient. 

Table  VI.— DISTANCES  AND  DAYS  SAVED  VIA  THE  SUEZ  CANAL,   AS  COMPARED  WITH  THE  PANAMA  ROUTE, 
BETWEEN   LIVERPOOL  AND   SINGAPORE,  MANILA,  HONGKONG,  SHANGHAI,  AND   YOKOHAilA. 


Distance 
shorter  via 
Suez  than 

via 
Panama 
(nautical 
miles). 

Days  sa\ 

ed  for  vessels  ot- 

To— 

9 

knots. 

10 
knots. 

12 
knots. 

14 
knots. 

16 
knots. 

Remarks. 

Singapore 

0,946 
■1,421 
4.172 
2.776 
694 

31.6 
19.9 
18.8 
12.3 
2.7 

28.4 
17.9 
16.8 
11 
2.4 

23.6 
14.8 
13.9 
9.1 
1.9 

20.2 
12.6 
11.9 
7.8 
1.5 

17.5 

11 

10.3 
6.8 
L3 

/Panama  route  via  San  Francisco  and  Yokohama. 
\Suez  route  via  Colombo. 

/Panama  route  via  San  Francisco  and  Yokohama. 
\Suez  route  via  Colombo  and  Singapore. 

/Panama  route  via  San  Francisco  and  Yokohama. 
\Suez  route  via  Colombo  and  Singapore. 

/Panama  route  via  San  Francisco  and  Yokohama. 
\Suez  route  via  Colombo,  Singapore,  and  Hongkong. 

/Panama  route  via  San  Francisco. 

\Suez  route  via  Colombo,  Singapore,  Hongkong,  and  Shanghai. 

Hongkong 

Shanghai 

Yolcohama 

What  has  been  said  in  the  precedmg  pages  regardmg  the  factors  other  than  distance  that  wiU  affect  the 
choice  of  routes  taken  hj  line  and  charter  vessels  between  the  eastern  seaboard  of  the  United  States  and  eastern 
Asia  is  appUcable  to  a  discussion  of  the  possible  use  of  the  Panama  Canal  bj'  a  portion  of  the  commerce  between 
Europe  and  the  Orient.  There  were  reasons  given  for  tliinkmgthat  some  vessels  outbound  from  Europe  ■will  be 
dispatched  hj  way  of  the  United  States  and  the  Panama  Canal,  and  for  believing  that  at  least  a  small  per- 
centage of  the  vessels  home-bound  to  Europe  from  Japan  and  other  countries  of  the  Orient  will  cross  the  Pacific 
to  North  or  South  America  and  proceed  thence  via  the  Isthmian  Canal  to  Europe.  At  the  present  time  an 
appreciable  tonnage  of  shipping  makes  the  voyage  from  the  Far  East  by  way  of  America,  and  with  the  opening 
of  the  Panama  Canal  the  volume  of  traffic  to  and  fro  between  the  English  Channel  and  the  Orient  moving  via 
America  may  be  expected  to  increase. 

The  chief  factor  in  producing  this  result  ynh  be  the  attractive  force  of  the  large  volume  of  commerce  (a) 
from  the  eastern  seaboard  of  the  United  States  to  the  Orient;  (b)  from  the  Orient  to  both  the  Pacific  and 
Atlantic  seaboards  of  the  United  States;  and  (c)  from  both  the  western  and  eastern  seaboards  of  the  United 
States  to  Europe.  Just  as  vessels  following  the  Suez  route  between  Europe  and  the  ultimate  ports  of  the 
Orient  Toaay  exchange  cargo  en  route  at  Asiatic  ports,  so  may  ships  taking  the  Panama  route  between  Europe 
and  Asia  engage  en  route  in  the  foreign  trade  of  the  United  States  with  Asia  and  with  Europe;  and,  while 
both  the  shorter  distances  via  the  Suez  route  and  Europe's  intimate  commercial  relations  with  Asia  will  cause 
most  of  the  European-Asiatic  trade  to  follow  the  Suez  route,  a  minor  share  of  the  commerce  will  move  by 
way  of  Panama. 

Fuel  expenses  for  voyages  between  Europe  and  China  will  be  less  via  Suez  than  via  Panama,  but  for 
voyages  from  British  and  other  North  European  ports  to  Japan  the  coal  costs  will  be  somewhat  less  via  Panama. 
Freight  vessels  leaving  Yokohama  with  full  cargoes  for  Europe  will  be  influenced  by  the  slightty  lower  fuel 
expenses  to  select  the  Panama  route;  if,  as  is  probable,  the  tolls  at  Panama  are  no  higher  than  at  Suez. 

It  is  possible  that  such  vessels  as  are  now  obliged  to  cross  the  Atlantic  from  Europe  to  the  United  States 
with  light  cargoes  or  in  ballast,  and  wliich  are  consequently  eager  to  obtain  freight  at  low  rates,  may  bring 
goods,  destined  for  the  Orient,  to  New  York  for  transshipment  to  lines  running  from  New  York  to  Japan,  China, 


PANAMA  CANAL  TRAFFIC  AND  TOLI^.  189 

and  the  Philippines.  At  the  present  time  a  part  of  the  commerce  between  the  eastern  United  States  and  the 
Orient  is  sent  to  Europe  and  there  transslaipped,  but  the  opening  of  the  Panama  Canal  may  reverse  this  current 
of  trade.  A  manager  of  a  firm  doing  a  large  business  as  agent  and  carrier  in  the  commerce  between  the  eastern 
United  States  and  the  Orient  says: 

We  are  of  the  opinion  that  instead  of  the  trans-Atlantic  lines  soliciting  American  freight  for  transshipment  via  Europe  they  may 
be  soliciting  European  freight  for  transshipment  at  New  York  for  such  of  those  New  York  services  [to  the  Orient]  as  find  it  advantageous 
to  use  the  Panama  Canal.  This  may  add  somewhat  to  the  traffic  [between  the  United  States  and  the  Orient  and  Australasia],  but  it  is 
hard  to  tell  what  such  a  movement  might  eventually  amount  to. 

The  possibility  that  the  Panama  Canal  may  be  used  by  at  least  a  minor  share  of  the  shippuig  moving 
between  Europe  and  the  Pacific  ports  of  Asia,  and  the  apparent  prospect  that  New  York  may  become  a  transfer 
point  for  a  portion  of  the  trade  of  Europe  with  the  Far  East,  make  it  desirable  that  the  toUs  should  be  no 
higher  at  Panama  than  at  Suez.  It  is  uncertam  what  share  of  the  traffic  between  Europe  and  the  Orient 
can  be  secured  by  the  Panama  Canal  in  competition  with  the  Suez  route.  In  any  event  the  Panama  Canal  will 
obtain  only  a  small  percentage  of  the  total,  but  it  wtR  be  weU  not  to  handicap  the  Panama  route  by  tolls 
higher  than  those  at  Suez. 


CHAPTER  XIL 


PANAMA  TOLLS   I. 

PRINCIPLES  AND  CONSIDERATIONS   THAT  SHOULD 
CONTROL  IN  FIXING  RATES. 


191 


CHAPTER  XII. 


PANAMA  TOLLS  I. 

PRINCIPLES  AND  CONSIDERATIONS  THAT  SHOULD  CONTROL  IN  FIXING  TOLLS. 

The  Panama  Canal  has  been  constructed  and  undoubtedly  will  be  operated  primarily  to  promote  the 
commerce  and  industry  of  the  United  States  and  the  world.  In  deciding  upon  the  policy  to  be  adhered  to 
in  the  administration  of  the  canal  the  commercial  usefulness  of  the  waterway  should  be  given  first  considera- 
tion. Tolls  may  msely  be  imposed  to  secure  revenue,  but  the  transit  dues  must  not  prevent  the  canal 
from  fulfilluig  its  primary  function.  The  tolls  should  not  only  be  within  what  the  traffic  will  bear,  but  should 
be  low  enough  to  permit  commerce  to  derive  substantial  benefits  from  the  canal. 

The  Canal  to  be  Commercially  Self-Supporting. 

The  canal  should,  however,  be  required  to  yield  such  revenues  as  can  be  secured  ^dthout  unduly  limiting 
its  usefulness.  The  United  States  has  made  a  heavy  investment,  and  will  have  large  current  operating  and 
maintenance  expenses  to  meet  year  by  year.  Business  prudence  and  political  wisdom  demand  that  the  canal 
shall  be  commercially  self-supporting,  provided  revenues  large  enough  to  enable  the  canal  to  carry  itself  can 
be  secured  without  unwisely  restricting  traffic.  This  principle  was  advocated  by  the  President  in  his  message 
of  December  21,  1911,  in  which  he  stated: 

I  believe  that  the  cost  of  such  a  Government  work  as  the  Panama  Canal  ought  to  be  imposed  gradually  but  certainly  upon  the  trade 
■which  it  creates  and  makes  possible.  So  far  as  we  can.  consistent  with  the  development  of  the  world's  trade  through  the  canal  and  the 
benefit  which  it  was  intended  to  secure  to  the  east  and  west  coastwise  trade,  we  ought  to  labor  to  secure  from  the  canal  tolls  a  sufficient 
amount  ultimately  to  meet  the  debt  which  we  have  assumed  and  to  pay  the  interest. 

The  canal  will  cost  the  United  States  Government  $375,000,000,  much  of  which  has  been,  or  wdll  be,  secured 
by  borro^ving  funds.  The  interest  and  principal  of  this  debt  must  be  paid  either  from  funds  secured  by  general 
taxes  or  from  the  revenues  derived  from  canal  tolls.  It  seems  wise  and  prudent  that  the  United  States  should 
adhere  to  sound  business  principles  in  the  operation  of  the  canal  and  in  lev^-ing  tolls.  Public  expenditures 
are  increasing  rapidly.  Funds  are  required  in  increasing  amount  for  the  promotion  of  the  public  health,  for 
irrigation  and  reclamation,  and  for  maintauiing  the  military  power  and  naval  prestige  of  the  United  States. 
Large  expenditures  upon  rivers  and  harbors  are  urgently  needed.  Taxes  must  inevitably  increase.  The 
demands  upon  the  United  States  are  certain  to  be  much  greater  in  the  future  than  they  have  been  in  the  past, 
and  it  does  not  seem  wise  for  the  Federal  Government  to  construct  and  maintain  at  the  expense  of  the  general 
budget  such  a  costly  public  work  as  the  Panama  Canal.  Those  who  derive  immediate  benefit  from  the  use  of 
the  Panama  Canal  may  properly  return  to  the  Govermuent  a  portion  of  the  profit  secured  from  using  the  canal, 
provided  this  policy  can  be  followed  out  without  burdening  commerce. 

In  reaching  this  conclusion  the  fact  has  not  been  overlooked  that  the  jieople  of  the  United  States  will 
have  in  the  Panama  Canal  a  great  militaiy  and  naval  asset.  The  naval  advantages  derived  from  the  Panama 
Canal  will  be  of  such  value  that  many  men  regard  the  waterway  primarily  as  a  militaiy  asset,  as  a  work  that 
must  have  been,  and  would  have  been,  executed  regardless  of  its  commercial  usefulness.  This  is  an  exaggerated 
view  of  the  miUtary,  as  compared  with  the  commercial,  value  of  the  canal,  the  cliief  purpose  of  wliich  is  to 
shorten  the  routes  of  ocean  commerce.  However,  the  Navy  will  be  very  definitely  benefited.  The  mobility 
of  the  fleets  will  be  increased,  and  they  will  be  able  to  defend  our  now  widely  separated  seaboards  more 
economically  and  more  eflfectively.  It  is  often  said  that  the  canal  will  double  the  efficiency  of  the  Navy. 
This  may  be  an  overstatement  of  the  facts,  but  is  probably  approximately  correct. 

The  strong  fortifications  that  will  be  maintained  at  the  Atlantic  and  Pacific  termini  of  the  canal  will  enhance 
its  value  to  our  Navy.  The  Canal  Zone  will  be  a  strong  naval  base  from  which  our  fleets  may  go  forth  to  strike 
a  blow,  and  to  which  they  may  return,  confident  of  being  protected  wliile  coal  and  other  supphes  are  being  secured 
and  while  the  vessels  of  the  fleet  are  being  given  necessary  repairs.     It  would  be  difficult  to  overestimate  the 

193 


194  PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 

importance  to  the  United  States  of  having  strong  fortifications  and  a  secure,  well-equipped  naval  base  at  the 
sole  gateway  between  the  Atlantic  and  Pacific. 

The  canal,  however,  will  add  to  our  military  expenses  as  weU  as  to  our  fighting  strength.  To  maintain 
strong  fortifications  at  the  Atlantic  and  Pacific  termini  of  the  canal,  manned  by  at  least  6,000  troops,  to  keep 
1,200  marines  stationed  on  the  Isthmus,  to  support  naval  coaling  depots  at  Cristobal  and  Balboa,  and  dry  docks 
and  repair  shops  for  the  Xavy  at  Balboa,  and  to  provide  and  operate  the  transports  and  coUiers  which  the  Army 
and  Navy  will  need  to  have  to  maintain  the  military  estabhshments  on  the  Isthmus  wiU  require  an  annual 
outlay  quite  equal  to  the  cost  of  operating  the  canal  and  paying  interest  on  the  investment.  The  necessary 
addition  to  our  military  and  naval  expenses  (which  are  already  heavy  in  comparison  with  the  expenditures  for 
civil  aft'airs)  consequent  upon  the  utilization  of  the  canal  as  a  military  asset  ■will  be  so  large  as  to  emphasize  the 
advisability  of  adopting  the  policy  of  making  the  canal  self-supporting  as  a  commercial  highway. 

The  policy  of  having  the  annual  operation,  maintenance,  and  interest  charges  borne  partly  by  the  military 
and  naval  budgets  and  partly  by  the  revenues  derived  from  tolls  has  some  advocates.  Those  who  hold  this 
view  contend  that,  inasmuch  as  the  canal  is  a  benefit  to  the  Navy  and  to  the  Army  as  well  as  to  commerce, 
a  part  of  the  canal  expenses  shoidd  be  charged  against  the  appropriations  made  for  the  support  of  the  Army 
and  Navy.     Two  objections  may  be  made  to  this  policy. 

1.  The  canal,  as  has  just  been  stated,  will  bring  about  a  large  increase  in  the  annual  Army  and  Navy 
expenses. 

2.  The  Navy  is  maintained  and  the  canal  is  fortified  not  only  to  enhance  our  military  power  but  also  to 
protect  American  commerce  on  the  high  seas  and  to  facilitate  the  extension  of  our  foreign  trade. 

Commerce  will  derive  large  mdirect  benefits  from  the  addition  which  the  canal  will  make  to  our  military 
strength  and  naval  efficiency.  The  policy  of  chargmg  toUs  upon  shipping  large  enough  to  produce  a  revenue 
equal  to  the  operating,  maintenance,  and  interest  expenses  will  mfiict  no  injustice  upon  those  who  use  the 
canal.  It  wUl  be  borne  in  mind,  of  course,  that  the  Panama  Canal,  at  least  during  the  early  years  of  its 
operation,  will  be  used  more  largely  by  foreign  ships  than  by  American  vessels  and  that  the  conunerce  passing 
through  the  waterway  will,  for  some  years  to  come,  be  more  largely  foreign  than  American. 

Revenue  and  Rate  of  Tolls  That  Will  Make  the  Canal  Commercially  Self-supporting. 

The  annual  revenue  ultimately  required  to  make  the  canal  commercially  self-supporting  will  be  about 
$19,250,000.  It  is  estimated  that  the  operating  and  maintenance  expenses  will  amount  to  .$3,500,000  yearly 
and  that  $500,000  ^vill  be  required  for  sanitation  and  for  the  government  of  the  zone.  The  interest  on 
$375,000,000  at  3  per  cent  per  annum  will  amount  to  $11,250,000,  and  the  treaty  vnth  Panama  guarantees  an 
annuity,  beginning  in  1913,  of  $250,000  to  the  Republic  of  Panama.  The  sum  of  these  four  items  is  $15,500,000. 
If  to  this  there  be  added  1  per  cent  per  annum  on  $375,000,000  to  accumulate  a  fimd  to  amortize  the  investment 
the  total  annual  expenses  will  be  $19,250,000. 

In  deciding  what  tolls  shall  be  charged  for  the  use  of  the  canal,  the  fmidamental  question  is  whether  a 
system  of  charges  can  be  devised  and  levied  that  will  ultimately  yield  about  $19,250,000  per  annum  without 
unduly  burdening  American  trade  and  without  seriously  limiting  the  ability  of  the  canal  to  compete  for  traffic 
against  the  routes  via  the  Straits  of  Magellan,  the  Cape  of  Good  Hope,  and  the  Suez  Canal. 

The  investigation  of  the  traffic  available  for  the  use  of  the  canal  led  to  the  conclusion  that  about  10,500,000 
tons  net  register  of  shipping  will  pass  through  the  canal  during  the  early  years  of  its  operation.  The  rate  at 
which  the  Suez  Canal  tonnage  and  the  commerce  of  the  world  is  increasing  indicates  that  an  increase  of  at  least 
60  per  cent  in  the  traffic  of  the  Panama  Canal  may  be  expected  during  the  decade  1915-1925.  It  is  thus 
probable  that  there  will  be  17,000,000  tons  of  shipping  using  the  canal  during  1925.  An  increase  of  60  per 
cent  during  the  second  decade  of  the  canal's  operation  would  bring  the  traffic  up  to  27,000,000  net  register 
tons  at  the  end  of  20  years.  These  estimates  are  believed  to  be  conservative.  If  the  traffic  of  the  Panama 
Canal  shall  be  equal  to  these  estimates,  it  will  be  possible  to  secure  from  moderate  tolls  enough  revenues  to 
enable  the  canal  to  be  commercially  self-supporting.  If  tolls  of  SI. 20  per  net  vessel  ton,  or  charges  equal  to 
those  which  the  Suez  Canal  will  impose  on  and  after  January  1,  1913,  are  levied  for  the  first  10  years  on  all 
shipping  using  the  Panama  Canal,  the  annual  receipts  at  the  end  of  the  first  decade  wiU  more  than  cover  the 
estimated  operation,  maintenance,  zone  sanitation  and  government,  Panama  annuity,  and  interest  charges. 
It  will  be  possible  within  10  3'ears  after  the  opening  of  the  canal  to  begin  the  accumulation  of  an  amortization 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  195 

fund.  If  a  toll  of  only  $1  per  net  ton  is  maintained  during  the  second  de<-ade  of  the  canal's  operation,  the 
annual  receipts  will  be  large  enough  to  meet  operating,  maintenance,  zone  sanitation  and  government,  interest, 
and  Panama  annuity  expenses,  to  set  aside  a  liberal  amount  for  the  amortization  of  the  investment,  and  to 
furnish  several  million  dollars  per  armum  for  the  betterment  of  the  canal,  which  by  that  time  will  probably  be 
necessary. 

A  toll  of  $1.20  per  net  vessel  ton  would,  in  the  case  of  the  ordinary  cargo  steamer,  impose  a  charge  of 
44  to  80  cents  per  ton  upon  the  freight  carried.  This  is  due  to  the  fact  that  freight  vessels  can  carry  from 
1 A  to  2f  tons  of  cargo  for  each  net  register  ton — the  ratio  of  freight  tonnage  to  vessel  tonnage  depending  upon  the 
type  of  ship  and  the  character  of  the  goods  carried.  A  toll  of  .?L20  per  net  ton  would  add  about  2  to  4  cents 
per  hundredweight  to  the  freight  rate. 

After  the  Panama  Canal  is  opened,  it  is  probable  that  some  low-grade  bulk  freight  may  be  carried  as  full- 
vessel  cargoes  between  our  two  seaboards  at  rates  as  low  as  $5  per  weight  ton.  The  charges  on  high-class 
measurement  freight  will  probably  be  from  .$12  to  $1.5  per  ton.  If  these  are  the  rates  charged,  a  toll  of  $1.20 
per  net  ton  on  vessels  passing  the  Panama  Canal  would  add  about  10  or  12  per  cent  to  the  rate  of  freight  charged 
on  low-grade  bulk  commodities  and  about  4  or  5  per  cent  to  the  rate  of  freight  on  high-class  goods  sliipped  as 
measurement  cargo.  Tolls  of  this  amount,  whether  borne  by  the  shipper  or  the  carrier,  would  not  materially 
restrict  the  use  of  the  canal  nor  would  such  charges  be  a  serious  burden  upon  traffic.  Of  course,  any  toll  is  a 
burden  that  must  be  borne  either  by  the  carrier,  the  shipper,  or  the  producer;  but,  if  the  toll  charged  neither 
limits  canal  traffic  nor  liinders  the  healthy  and  profitable  extension  of  trade,  the  burden  is  one  wliich  the 
Government  may  properly  impose  in  order  to  secure  the  revenues  recjuired  to  meet  canal  expenses.  Taxes, 
as  well  as  tolls,  are  a  burden;  and  it  is  probable  that  the  canal  revenues  can  be  secured  with  minimum  public 
burden  by  taking,  as  canal  revenues,  a  portion  of  the  profits  derived  by  those  that  directly  use  the  canal. 

The  Different  Interpketations  Given  the  Hay-Pauncefote  Treaty. 

There  has  been  much  discussion  of  the  policy  of  exempting  American  ships  from  the  payment  of  Panama 
Canal  toUs.  Those  who  favor  this  policy  believe  it  to  be  permitted  by  the  Hay-Pauncefote  treaty,  Article  III, 
section  1,  of  which  stipulates  that — • 

The  canal  shall  be  free  and  open  to  the  vessels  of  commerce  and  of  war  of  all  nations  obser\dng  these  rules,  on  terms  of  entire  equality, 
to  that  there  shall  be  no  discrimination  against  any  such  nation,  or  its  citizens  or  subjects,  in  respect  of  the  conditions  or  charges  of  traffic, 
or  otherwise.     Such  conditions  and  charges  of  traffic  shall  be  just  and  equitable. 

Some  advocates  of  free  tolls  for  American  vessels  are  of  the  opinion  that  the  coastwise  shipping  of  the 
United  States  can  be  exempted  from  Panama  tolls  without  discriminating  against  foreign  shippmg,  because 
vessels  under  foreign  flags  are  not  allowed  to  engage  in  the  coastwise  trade  of  the  United  States.  Being  excluded 
from  our  coastwise  trade,  such  vessels,  it  is  contended,  are  not  discriminated  against  by  favors  granted  to  our 
own  ships.  Other  advocates  of  free  tolls  for  American  shipping  so  interpret  the  Hay-Pauncefote  treaty  as  to 
exempt  from  the  restrictions  of  Article  III,  section  1,  all  American  ships — those  engaged  in  foreign  commerce 
as  well  as  those  employed  in  our  coastwise  trade.  Those  who  give  the  treaty  this  interpretation  hold  that 
Article  III  of  the  convention  formulates  the  rules  which  the  United  States  adopted  for  the  use  of  the  canal  by 
all  other  nations  than  the  United  States,  i.  e.,  that  the  United  States  agreed  to  maintain  the  canal  as  a  highway 
to  be  used  by  all  foreign  nations  under  terms  of  entire  equality  as  long  as  such  nations  observe  the  rules  laid 
down  by  the  United  States. 

Among  those  who  interpret  the  Hay-Pauncefote  treaty  as  requiring  the  payment  of  the  same  Panama 
toUs  by  all  vessels,  both  American  and  foreign,  are  advocates  of  the  policy  of  relieving  the  American  coastwise 
shipping  of  the  burden  of  canal  charges  by  the  repayment  from  the  United  States  Treasury  to  the  owners  of 
American  vessels  using  the  canal  the  amounts  collected  as  tolls.  The  result  of  this  policy  would  be  the  same  as 
the  exemption  of  American  coastwise  shipping  from  the  payment  of  tolls.  Repayment  of  the  exact  tolls  col- 
lected would  give  the  same  assistance  to  American  vessels  as  would  be  rendered  by  the  exemption  of  American 
ships  from  the  payment  of  tolls. 

It  does  not  come  within  the  province  of  this  report  to  interpret  the  scope  and  meaning  of  the  Hay-Pauncefote 
treaty.  Whatever  the  Hay-Pauncefote  treaty  may  be  held  to  mean,  the  policy  of  the  United  States  as  to  the 
exemption  of  American  sliips  from  the  payment  of  Panama  tolls  should  not  be  decided  with  reference  to  the 
rights  of  the  United  States  under  the  treaty.     The  fundamental  questions  to  be  considered  are  (1)  whether  the 


196  PANMIA  CANAL  TRAFFIC  AND  TOLLS. 

exemption  of  American  shipping  from  the  payment  of  tolls  is  required  to  enable  the  canal  effectively  to  promote 
the  deyelopment  of  American  commerce  and  shipping,  and  (2)  %vhat  effect  the  nonpayment  of  the  tolls  by 
American  ships  will  haye  on  the  canal  reyenues. 

The  general  principle  has  been  enunciated,  from  time  to  time,  in  this  report  that  the  rate  or  rates  of  toll 
adopted  for  the  Panama  Canal  should  be  such  as  not  unduly  to  burden  American  trade;  but  that  the  charges 
should  be  high  enough  to  secure  from  the  canal  reyenues  that  ^vill,  \vithin  a  few  years  after  the  opening  of  the 
canal,  be  sufficient  to  meet  the  annual  operatiiig,  maintenance,  sanitation,  goyernment,  annuity,  and  interest 
charges,  provided  revenues  of  this  amount  can  be  secured  without  limiting  the  usefulness  of  the  canal  m  the 
promotion  of  American  shipping  and  the  development  of  the  commerce  of  the  United  States  and  of  the  world. 
The  exemption  of  American  shipping  from  the  pa^'ment  of  toUs  will  reduce  the  revenues  obtained  from  the 
canal.  Is  this  sacrifice  of  revenue  necessary  and  justifiable?  The  question  of  special  significance  is,  Will 
this  contribution  by  the  Government  be  effective  in  buUding  up  the  American  marine  ? 

Abgumexts  for  axd  Agaixst  Free  Tolls  For  AiiERiCAX  Ships. 

The  arguments  that  have  been  advanced  in  favor  of  the  exemption  or  repayment  of  Panama  tolls  on 
American  shipping  may  be  summarized  as  follows : 

1.  It  is  contended  that,  unless  American  ships  are  aided  by  the  exemption  or  repayment  of  Panama  Canal 
tolls,  not  enough  vessels  will  be  constructed  and  put  into  operation  to  handle  the  traffic  seeking  shipment  between 
our  two  seaboards.  It  is  asserted  that  the  coast-to-coast  shipping  business  will  not  be  profitable  enough  to 
attract  capital  and  that  Government  aid  will  be  needed. 

2.  It  is  argued  that  the  higher  cost  of  constructing  and  operating  American  vessels  will  enable  the  foreign 
vessels  (which  ^vill  be  mainly  British)  to  carry  commodities  between  British  Columbia  and  the  Atlantic  seaboard 
of  the  United  States,  and  between  eastern  Canada  and  the  west  coast  of  the  United  States,  at  lower  rates  than  can 
profitably  be  charged  by  American  vessels  engaged  in  the  traffic  between  the  two  seaboards  of  the  United  States. 
The  lower  rates  thus  enjoyed  by  Canadian  shippers,  producers,  and  merchants  will,  it  is  said,  give  them  a  decided 
advantage  over  their  competitors  in  the  United  States,  to  the  detriment  of  American  shipping  and  of  the  domestic 
industry  and  commerce  of  the  United  States. 

3.  A  third  argument  advanced  is  that,  if  tolls  are  charged  on  the  coast-to-coast  traffic  by  way  of  the  canal, 
the  railroads  wUl  be  able  to  maintain  their  rates  higher,  by  the  amount  of  the  canal  tolls,  than  their  charges 
would  otherwise  be:  and  that,  inasmuch  as  the  traffic  handled  east  bound  and  west  bound  by  the  railroads  will 
be  larger  than  the  tonnage  shipped  by  water  between  our  two  coasts,  the  addition  to  the  rail  rates  due  to  canal 
tolls  on  coast-to-coast  business  vnll  require  the  pubfic  to  pay  the  railroads  much  more  than  the  Government 
Will  receive  from  the  canal  toUs  on  coastwise  shipping.  It  is  asserted  that  the  canal  toUs  wifi  enable  the  railroads 
to  add  to  the  freight  tax  paid  by  the  shippers. 

4.  The  fourth  contention  is  that  an  insufficient  supply  of  American  ships  for  the  coast-to-coast  trade  of  the 
United  States  and  the  lower  rates  enjoyed  by  foreign  shippers  wiU  create  an  irresistible  demand  on  the  part  of 
the  commercial  interests  of  the  United  States  for  the  admission  of  foreign-built  ships  to  the  American  coastwise 
trade.  This  argument  is  advanced  not  only  by  the  owners  and  builders  of  American  ships  but  also  b}'  others 
who  feel  that  the  admission  of  foreign-built  ships  to  American  registry  will  bring  about  the  closing  of  the  prin- 
cipal seaboard  shipyards,  and  thus  make  the  United  States  dependent  upon  foreign  yards  for  the  construction 
of  vessels  for  the  American  Xavv". 

The  arguments  in  favor  of  charging  aU  vessels.  American  and  foreign,  the  same  canal  tolls  and  in  opposition 
to  the  poUcy  of  omitting  or  remitting  tolls  upon  American  coastwise  shipping  may  be  summarized  as  follows: 

1.  It  is  not  necessary  to  relieve  coastwise  shipping  of  canal  tolls  as  long  as  foreign  built-ships  are  not  allowed 
to  engage  in  the  domestic  commerce  of  the  United  States.  American  shipowners  have  a  monopoly  of  the  coast- 
wise trade;  the  canal  will  greatly  increase  the  demand  for  coastwise  transportation,  and  the  rates  that  may  be 
charged  by  water  carriers  between  our  two  seaboards  wiU  be  high  enough  to  make  their  business  profitable. 
Coastwise  shipping  will  be  increased  in  tonnage  in  proportion  to  the  enlarged  demand  for  transportation  facilities, 
unless,  as  is  feared  by  some  persons,  the  steamship  lines  owned  or  affiliated  with  the  transcontinental  railroads 
may  engage  in  destructire  warfare  against  vessel  lines  not  connected  with  the  railroads. 

If  it  should  be  foimd  to  be  the  poUcy  of  the  railroad-controlled  steamship  fines — assuming  that  such  lines 
are  permitted  to  use  the  canal — to  attemjjt  to  drive  the  lines  independent  of  railroad  affifiation  off  the  canal 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  197 

route,  the  independent  steamship  companies  can  be  protected  against  unfair  competition  by  Federal  supervision 
and  regulation  of  the  services  and  rates  of  coastwise  carriers.  For  reasons  that  are  presented  below,  it  is  not 
probable  that  it  will  be  a  wise  pohcy  on  the  part  of  the  railroads  to  engage  in  destructive  warfare  against  inde- 
pendent coastwise  steamsliip  hnes ;  but,  in  either  event,  it  will  doubtless  be  wiser  for  the  Government  to  regulate, 
rather  than  to  limit,  the  use  of  the  canal. 

2.  To  the  argument  that  Canadian  shippers  and  producers  \vill  have  an  advantage  over  their  competitors 
in  the  United  States,  because  the  rates  \vill  be  lower  by  foreign  vessels  than  by  American  ships,  two  answers  are 
made: 

(a)  The  American  producer  is  protected  by  the  tariff.  The  prmcipal  articles  shipped  from  Washington 
and  Oregon  in  competition  with  the  producers  in  British  Columbia  will  be  wheat,  lumber,  and  fish.  The  present 
tariff  upon  wheat  is  25  cents  per  bushel  and  upon  flour  25  per  cent  ad  valorem.  Upon  lumber  the  tariff  rates 
range  from  50  cents  to  $2.75  per  thousand  feet,  and  on  fish  the  duties  are  f  cent  per  pound  for  most  varieties, 
with  a  duty  of  1  cent  per  pound  upon  salmon,  mackerel,  and  hahbut. 

(6)  The  rates  charged  by  steamship  lines  between  ports  on  the  Atlantic  and  ports  in  British  Columbia 
will  probably  be  the  same  as  the  rates  of  the  steamship  lines  operating  between  the  Atlantic  and  Pacific  sea- 
boards of  the  United  States.  The  coastwise  steamship  lines  operating  through  the  canal  to  and  from  Canadian 
and  British  Columbian  ports  ^vill  be  in  competition  with  the  lines  operating  between  the  two  seaboards  of  the 
United  States,  and  it  is  not  to  be  expected  that  the  hnes  serving  Canadian  and  American  ports  will  act  inde- 
pendently of  each  other.  In  all  probability  the  rates  of  the  several  lines,  American  and  foreign,  will  be  fLxed 
in  the  "conferences"  of  the  interested  Unes,  and  it  is  not  to  be  expected  that  the  rates  to  and  from  British 
Columbian  ports  will  be  lower  than  the  rates  between  the  less  distant  places  on  the  two  seaboards  of  the  United 
States. 

Shippers  in  British  Columbia  and  Canada  will  be  able  to  charter  vessels  at  lower  rates  than  the  shippers  in 
the  United  States  will  have  to  pay,  for  the  reason  that  American  producers  and  merchants  will,  unless  our 
navigation  laws  are  changed,  be  able  to  secure  the  services  only  of  American  vessels,  which,  as  compared  with 
those  under  foreign  flags,  are  more  expensive  to  build  and  to  operate.  However,  as  has  been  explained  in 
earher  parts  of  this  report,  a  relatively  small  share  of  the  tonnage  between  the  two  seaboards  of  North  America 
win  be  shipped  as  full  vessel  cargoes.  All  but  a  comparatively  few  of  the  largest  shippers  will  employ  the 
services  of  line  steamere. 

The  producers  and  exporters  of  lumber  from  the  Northwestern  States  of  the  United  States  are  desirous 
of  being  rcheved  from  the  payment  of  canal  tolls  in  order  that  they  may  thereby  more  readily  compete  with 
their  Canadian  rivals.  Lumber  is  well  adapted  to  shipment  as  full  cargoes  in  chartered  vessels,  and  the  exemp- 
tion of  coastwise  shipping  from  the  payment  of  canal  toUs  would  somewhat  increase  the  profits  of  the  north- 
western lumbermen.  In  this  connection,  however,  it  should  be  borne  in  mind,  as  has  just  been  stated,  that  the 
lumber  sent  to  the  eastern  ports  of  the  United  States  has  no  tariff  duties  to  pay,  wliile  the  British  Columbian 
shipper  to  our  Atlantic  seaboard  can  enter  our  markets  only  by  the  payment  of  relatively  high  duties. 

Whether  there  be  tolls  on  American  sliips  at  Panama  or  not,  it  is  unhkely  that  much  Pacific  coast  lumber 
can  be  sold  in  the  Atlantic  markets  of  the  United  States  in  competition  with  southern  lumber.  The  lumber  from 
the  southern  mills  is  shipped  north  either  by  cheap  aU-water  routes  or  by  inexpensive  raU-and-water  routes 
from  Mobile,  Jacksonville,  Savarmah,  Charleston,  Georgetown,  N.  C,  Norfolk,  Va.,  and  numerous  other  GuK 
and  south  Atlantic  ports.  The  large  exports  of  lumber  from  Washington  and  Oregon  are  shipped  mainly  to 
foreign  countries,  and  can  be  transported  in  foreign  vessels  at  the  same  charter  rates  as  are  paid  by  British 
Columbian  exporters. 

3.  The  third  argument  in  favor  of  reUeving  American  coastwise  shipping  from  Panama  toUs — that  the 
tolls  charged  will  be  added  to  railroad  rates — assumes  an  improbable  adjustment  of  rail  and  water  rates.  Those 
who  contend  that  the  traffic  carried  by  rail  between  the  eastern  and  western  parts  of  the  United  States  will  be 
charged  rates  increased  by  the  rate  of  canal  tolls  assume  that  the  rail  charges  must  be  and  will  be  controlled 
by  the  coast-to-coast  water  rates  and  that  the  schedules  of  railroad  rates  mil  be  fixed  at  such  differentials 
above  the  water  rates  as  the  railroads  can  charge  and  secure  traffic  in  competition  with  the  rival  water  lines. 
In  order  to  bring  about  this  adjustment  of  rail  and  water  rates  there  must  be,  fu'st,  active,  rate-con trolfing 
competition  among  the  water  lines,  and,  second,  it  must  be  the  policy  of  the  railroads  to  fix  rates  so  as  to  com- 
pete actively  with  the  carriers  by  water  for  practically  all  traffic  moving  between  the  two  seaboards.  Will 
those  conditions  exist  ? 

34998°— 12 14 


198  PANAJ^IA  CANAL  TRAFFIC  AND  TOLLS. 

Up  to  the  present  time  it  has  been  the  practice  of  steamship  lines,  when  operating  between  common  termini, 
to  adjust  services  and  rates  by  "conference."  There  is  more  competition  among  steamship  lines  than  among 
railroad  companies;  but  the  informal  organizations  or  conferences  of  steamship  companies  are  able  to  regulate 
competition  and  to  prevent  rates  from  being  forced  hj  competition  to  the  level  below  which  they  could  not  be 
forced  mthout  making  the  business  unprofitable.  When  several  steamship  lines  operate  over  estabUshed 
routes  and  serve  the  same  sections,  they  are  able  by  agreements  and  understandings  with  each  other  so  to  limit 
competition  as  to  make  their  ser^nces  and  rates  at  least  partially  monopolistic.  Unless  prevented  by  effective 
Government  regulation,  steamship  companies  will,  like  railroad  companies,  steadily  increase  the  monopolistic 
character  of  their  ser'V'ice. 

If  this  analysis  of  the  relation  of  steamship  companies  with  each  other  be  correct,  it  foUows  that  the  rates 
charged  by  steamship  lines  between  the  two  seaboards  of  the  United  States  will  be,  or  will  tend  to  be,  not  the 
lowest  rates  at  which  traffic  can  be  profitably  handled,  but  rates  as  high  as  the  interested  steamship  lines 
think  the  rates  can  be  put  without  limiting  the  growth  of  traffic  or  without  losing  tonnage  to  the  railroad  lines. 
Steamship  companies,  like  railroad  companies,  \vill  tend  to  charge  what  the  traffic  will  bear;  and  steamship 
traffic  will  bear  such  rates  as  shippers  vnll  pay  to  have  their  goods  transported  by  water  instead  of  by  rail. 
If  tliis  be  true,  the  tendency  will  be  for  carriers  by  water  to  adjust  their  charges  with  reference  to  the  schedules 
of  railroad  rates.  In  so  far  as  this  practice  of  rate  making  prevails,  it  wiU  be  impossible  for  the  carriers  by 
water  to  add  the  canal  tolls  to  their  rates.  Whether  there  be  canal  tolls  or  not,  rates  by  water  carriers  will 
be  such  as  the  traffic  wiU  bear;  the  upper  limit  of  what  traffic  by  water  will  bear  will  be  the  lower  limit  to 
which  rates  are  brought  by  the  raOroads;  and  the  tolls  will  be  paid  by  the  owners  of  the  steamship  lines 
instead  of  by  the  shippers  in  additional  water  rates. 

In  the  case  of  chartered  vessels,  however,  the  sliipper,  and  not  the  owner,  of  the  vessels  must  bear  the 
burden  of  the  canal  tolls.  Charter  rates  will  necessarily  be  increased  by  the  amount  of  the  canal  tolls;  and, 
in  so  far  as  railroads  compete  with  the  chartered  vessel  for  lumber  and  similar  traffic,  the  canal  toUs  will  be  of 
advantage  to  rafiroads.  This  advantage,  however,  ^vill  be  more  theoretical  than  real.  It  is  not  probable  that 
the  railroads  can,  in  any  event,  compete  with  the  carrier  by  water  for  bulk  cargoes  of  lumber,  coal,  and  similar 
products.  The  railroads  will  be  obliged  to  allow  that  traffic  to  move  by  water.  Thej'  will  not  run  the  risk  of 
depressing  their  general  schedule  of  commochtj'  and  class  rates  for  the  purpose  of  preventing  chartered  vessels 
from  securing  traffic  that  can  be  handled  between  the  two  seaboards  of  the  United  States  for  S5  per  ton. 

The  probable  adjustment  of  rates,  by  the  coastwise  water  Imes  and  by  the  railroads,  upon  traffic  between 
the  two  seaboards  of  the  United  States  was  considered  at  length  in  Chapter  IV,  and  the  general  conclusion 
reached  was  that  "it  will  be  the  policy  of  the  railroads  to  allow  a  portion  of  the  traffic  that  might  be  held  to 
the  rails  to  be  shipped  coastwise  through  the  canal  and  to  maintain  rates  upon  the  traffic  which  can  readily  be 
prevented  from  taking  the  canal  route.  It  is  probable  that  the  railroads  will  adopt  the  general  poficy  of  sur- 
rendering without  serious  struggle  the  minor  portion  of  their  traffic  in  order  to  maintain  profitable  charges 
upon  the  major  share  of  their  tonnage." 

The  foregoing  argument  concerning  the  effect  of  canal  tolls  upon  rail  and  water  rates,  and  concerning  the 
adjustment  of  the  charges  of  coastwise  and  all-rail  carriers  handling  traffic  between  the  two  seaboards  of  the 
United  States  may  be  summarized  as  follows: 

Producers  and  consumers  would  not  secure  the  major  share  of  the  benefits  resulting  fi'om  the  remission  of 
tolls  upon  coastwise  shipping  using  the  Panama  Canal.  On  the  traffic  handled  by  steamship  lines  between  the 
two  seaboards,  rates  will  be  but  slightly  affected  by  canal  tolls.  The  coastwise  traffic  between  our  Atlantic  and 
Pacific  ports  will  consist  mainly  of  general  commodities  and  package  freight  handled  by  the  established  steam- 
ship lines.  The  rates  charged  bj"  the  steamship  lines,  being  regulated  by  agreements  among  competing  companies 
and  being  fixed  with  reference  to  what  the  traffic  will  bear,  ■wUl  presumably  be  as  high  as  traffic  conditions 
warrant  regardless  of  tolls.  The  several  lines  wUl  have  uniform  and  relatively  stable  schedules  of  charges  and 
the  rates  of  the  steamship  lines  will  ordinarily  be  adjusted  with  reference  to  the  stable  schedule  of  commodity 
and  class  rates  prevailing  upon  the  transcontinental  railroads  and  their  rail  connections.  If  canal  tolls  are 
charged,  the  operating  expenses  of  the  steamship  companies  will  be  increased  by  the  amount  of  the  tolls  and 
their  net  profits  will  be  lessened  by  the  same  amount. 

Charter  traffic  between  the  two  seaboards  of  the  United  States  will  be  limited  to  a  few  commodities  handled 
as  bulk  cargoes  hj  or  for  the  exceptionally  large  shipper.     Chartered  vessels  will  not  compete  with  the  regular 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  199 

steamship  lines  to  such  an  extent  por  in  such  a  manner  as  generally  to  regulate  the  rates  charged  by  the  steam 
ship  lines  on  the  greater  portion  of  their  traffic. 

4.  The  contention  that,  unless  coastwise  shipping  is  relieved  of  Panama  tolls,  there  wiU  be  an  insufficient 
supply  of  American  sliips  and  that  this  condition  will  bring  about  the  admission  of  foreign-bmlt  ships  to  our 
domestic  trade  need  not  be  given  great  weight.  If  the  canal  brings  about  a  large  demand  for  coastwise  trans- 
portiition  facilities  it  will  be  profitable  for  American  capital  to  invest  in  ships  to  provide  those  facilities.  If 
there  should  prove  to  be  a  permanent  scarcity  of  American  ships  to  handle  the  coast-to-coast  traffic,  it  is  prob- 
able that  the  Congress  can  and  will  devise  methods  of  aiding  American  shipping  without  closing  American  ship- 
yards to  the  detriment  of  our  navy. 

5.  It  is  earnesth'  argued  by  those  who  favor  relieving  American  shipping  of  Panama  toUs  that  the  pohcy 
should  be  adopted  in  order  to  give  further  aid  to  the  American  merchant  marine.  When  subjected  to  analysis 
this  argmnent  loses  force.  Our  shipping  employed  in  the  foreign  trade  needs  assistance,  but  our  coastwise 
marine  has  a  monopoly  of  the  coastmse  trade  and  does  not  need  further  aid.  In  1911  there  were  3,5.37,750  tons 
of  American  ships  enrolled  for  the  domestic  trade  on  the  Atlantic-Gulf  and  Pacific  seaboards.  The  increase 
during  the  preceding  decade  had  been  38  per  cent.  There  is  thus  a  relatively  large  and  healthily  increasing 
tonnage  of  coastwise  shipping;  and  the  opening  of  the  Panama  Canal  will  undoubtedly  bring  about  a  large 
addition  to  the  coastwise  fleet.  Our  coastwise  marine  is  now  given  sufficient  aid  and  protection  by  our  navi- 
gation laws. 

American  shipping  engaged  in  the  foreign  trade  has  declined  steadily  for  several  decades;  and  careful 
consideration  may  well  be  given  to  measures  that  promise  effective  aid  in  building  up  our  .shipping  regis- 
tered for  the  foreign  trade;  but  the  exemption  of  that  shipping  from  the  payment  of  Panama  Canal  tolls  is 
inadvisable. 

The  pohcy  is  not  advisable  because  the  aid  given  would  be  of  httle  effect.  The  amount  of  money  paid  by 
the  Government  to  our  shipping  engaged  in  the  foreign  trade  would  be  slight  and  the  subsidy  thus  granted 
would  be  so  widely  and  thinly  distributed  as  to  accomphsh  little,  if  any,  results.  In  order  to  make  a  ship  subsidy 
effective,  the  companies  aided  must  thereby  be  put  in  a  position  to  compete  successfully  with,  foreign  steamship 
companies.  The  Government  must  concentrate  its  aid  and  so  strengthen  the  strong  lines  that  are  given  Gov- 
ernment support  as  to  put  them  in  a  position  to  hold  their  own,  and  to  grow  stronger,  in  competition  with  their 
foreign  rivals. 

The  adoption  of  the  policy  of  paying  back  to  American  shipowners  the  Panama  tolls  collected  from  them, 
might  be  a  disadvantage  instead  of  an  aid  to  our  shipping.  The  repayment  to  shipowners  of  the  Panama  toUs 
collected  from  them  would  invite  similar  action  by  other  nations  to  overcome  the  effect  of  our  action.  It  woiild 
be  a  form  of  subsid}'  suggesting  retahatory  action  by  foreign  governments. 

The  same  tolls  should  be  collected  from  aU  ships,  American  or  foreign,  in  order  that  the  Government  may 
secure  from  the  canal  traffic  such  revenue  as  can  be  collected  mthout  limiting  the  commercial  usefiUness  of 
the  waterway.  This  argument  ought  to  be  given  weight  in  deciding  upon  the  pohcy  to  be  followed  in 
charging  Panama  tolls.  The  United  States  Goverimient  should  conserve  its  revenues  carefully.  The  fiscal 
policy  of  the  Government  shoidd  square  with  business  principles.  Our  coastwise  shipping  does  not  need  fmther 
aid,  and  to  exempt  our  marine  in  the  foreign  trade  from  canal  toUs  would  be  to  grant  a  subsidy  that  would 
reduce  the  Government  revenues  \vithout  effectively  aiding  our  merchant  marine. 

Panama  Tolls  Should  be  Within  What  the  Traffic  Will  Bear. 

In  fixing  Panama  Canal  tolls  some  consideration  should  be  given  to  the  established  principles  of  rate  mak- 
ing. It  will  not  be  advisable  for  the  United  States  Government  in  fixing  canal  toUs  to  adhere  strictly  to  the 
principles  that  control  rail  and  water  carriers  in  the  making  of  freight  rates;  but  the  rate  or  rates  of  toll  levied 
at  Panama  may  well  be  a  compromise  between  charges  based  upon  traffic  and  revenue  principles  and  charges 
fixed  solely  with  reference  to  the  promotion  of  political  or  national  aims.  The  tolls  charged  for  the  use  of 
the  canal  shoidd  not  be  all  the  traffic  will  bear;  indeed,  they  ought  to  be  less  than  ships  can  afford  to  pay  in. 
return  for  the  services  rendered  by  the  canal.  Wlule  the  prunary  purjioses  of  the  Panama  Canal  are  to  pro- 
mote commerce  and  to  strengthen  the  military  and  naval  efficiency  of  the  United  States,  it  should  be  the  policy 
of  the  United  States  Government  so  to  manage  the  canal  as  both  to  develop  traffic  and  to  increase  the  canal 
revenues. 


200  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  preceding  chapter  considered  with  some  detail  the  effects  which  tolls  may  have  upon  traffic  through 
the  canal;  and  the  facts  there  presented  show  clearly  that  all  of  the  commerce  between  the  Atlantic-Gulf  sea- 
board of  the  United  States  and  the  entire  west  coast  of  America,  includmg  Hawaii,  will  bear  heavier  Panama 
toUs  than  it  will  be  wise  to  charge.  The  canal  route,  because  of  the  savmg  m  distance  and  fuel  expenses,  has 
a  monopoly  of  this  traffic,  and  tolls  will  have  to  be  much  above  $1.20  per  net  vessel  ton — the  Suez  Canal 
rate — to  divert  any  tonnage  from  Panama.  Even  the  shipping  engaged  in  the  trade  of  central  Chile  with  our 
Atlantic  seaboard  will  unquestionably  use  the  canal  route,  because  of  the  high  price  of  coal  via  the  Straits  of 
Magellan. 

The  Panama  Canal  is  likewise  certain  to  be  used  by  practically  all  of  the  trade  between  Europe  and  Pacific 
America,  including  Hawaii.  Between  Europe  and  all  places  north  of  Valparaiso  the  canal  route  will  be  taken, 
although  the  tolls  exceed  the  1913  Suez  rate  of  $1.20  per  net  ton;  and,  although  ordinary  freight  vessels  en 
route  between  Europe  and  Valparaiso  will  effect  a  distance  saving  via  Panama  equivalent  to  only  60  or  70 
cents  per  net  ton,  the  fuel  expenses  and  the  space  necessarily  devoted  to  coal  bunkers  via  Panama  will  be 
enough  less  than  via  Magellan  to  cause  the  Panama  route  to  be  preferred,  though  the  tolls  are  made  double 
the  saving  that,  will  result  from  the  shortening  of  time  and  distance.  Moreover,  as  has  been  explained,  the 
Panama  route,  even  though  more  expensive  than  the  one  via  Magellan,  will  be  preferred,  because  it  will  enable 
vessels  to  engage  in  trade  at  the  west  coast  South  American  ports  intermediate  between  Panama  and  Val- 
paraiso. It  will  be  well  to  study  carefully  the  effect  which  Panama  tolls  may  have  upon  the  routes  taken  by 
vessels  running  between  Europe  and  central  Chile,  but  it  is  not  believed  that  ships  will  be  diverted  to  the  Straits 
of  Magellan  by  tolls  at  Panama  of  $1.20  per  net  vessel  ton. 

Shipping  engaged  in  th«  trade  between  the  eastern  part  of  the  United  States  and  Australia  could  readily 
afford  to  pay  Panama  tolls  equal  to  those  that  will  be  charged  at  Suez — $1.20  per  net  ton  beginning  with 
January  1,  1913 — even  though  the  fuel  expenses  wsre  the  same  via  Panama  as  by  way  of  the  Cape  of  Good  Hope. 

Vessels  making  voyages  between  the  eastern  part  of  the  United  States  and  New  Zealand  will  have  the 
choice  of  the  Panama  and  Magellan  routes.  The  saving  resulting  from  the  shortening  of  time  and  distance  via 
Panama  will  be  somewhat  less  than  $1.20  per  net  ton  for  freight  vessels,  but  the  fuel  expenses  via  the  Isthmian 
route  will  be  so  much  less  than  those  by  way  of  the  Straits  of  Magellan  as  to  leave  no  doubt  as  to  the  prefera- 
bility  of  the  Isthmian  route. 

Australia  is  nearer  Europe  by  way  of  Suez  than  via  Panama,  and  most  of  the  Continent  is  less  distant  from 
Europe  via  the  Cape  of  Good  Hope  than  by  way  of  the  American  isthmus.  However,  the  city  of  Sydney,  which 
is  the  ultimate  destination  of  most  vessels  outbound  from  Europe  to  Australia,  is  but  150  miles  farther 
from  Liverpool  via  Panama  and  Tahiti  than  via  Suez,  Colombo,  and  Australian  ports  of  call.  As  compared 
with  the  route  from  Australia  to  Europe  via  Durban  (to  secure  coal)  and  the  Cape  of  Good  Hope,  the  sailing 
distance  via  Panama  is  about  1,000  miles  shorter,  and  the  fuel  expenses  wiU  be  somewhat  less  via  the  American 
route. ' 

These  facts  indicate  that  the  course  taken  by  vessels  between  Sydney,  Australia,  and  the  ports  of  northern 
Europe  will  be  determined  mainly  by  the  relative  advantages  of  the  alternative  routes  as  regards  traffic  oppor- 
tunities at  intermediate  ports.  At  the  present  time  many  vessels  sail  from  Australia  in  ballast  or  with  part 
cargoes  for  the  west  coast  of  North  and  South  America  to  secure  freight  for  transportation  to  Europe  via  the 
Straits  of  Magellan.  The  opening  of  the  Panama  Canal  may  be  expected  to  increase  the  tendency  of  vessels 
to  cross  the  Pacific  from  Australasian  ports  to  secure  cargoes  in  America  for  Europe.  The  route  taken  by  vessels 
outbound  and  inbound  between  Europe  and  Australia  will  unquestionably  be  influenced  by  the  rate  of  tolls 
charged  at  Panama.  If  the  Panama  transit  dues  are  the  same  as  those  at  Suez,  both  canal  routes  will  compete 
with  the  Cape  of  Good  Hope  under  equal  conditions.  The  Australian-European  tonnage  that  can  be  secured 
for  the  Panama  route  will  not  constitute  a  large  enough  share  of  the  total  traffic  of  the  Panama  Canal  to  warrant 
a  general  reduction  iu  Panama  tolls  for  the  purpose  of  increasing  the  use  of  the  American  canal  by  the  commerce 
of  Australia  with  Europe. 

The  Panama  Canal  must  compete  with  the  Suez  route  for  the  commerce  between  the  Atlantic-Gulf  sea- 
board of  the  United  States  and  the  Orient  east  of  Singapore.  Manila  and  Hongkong  are  about  equally  distant 
from  New  York  by  the  Suez  and  Panama  routes.  The  territory  north  and  east  of  those  two  cities  is  within  the 
Panama  Canal's  traffic  zone,  while  that  south  and  west  is  tributary  to  the  Suez  route.     It  is  not  to  be  expected, 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  201 

however,  that  all  of  the  commerce  between  the  eastern  seaboard  of  the  United  States  and  points  south  and  west 
of  Hongkong  and  Manila  will  take  the  Suez  route  and  that  all  of  the  ships  plying  between  our  Atlantic  ports 
and  the  territory  north  and  east  of  Hongkong  and  Manila  will  use  the  Panama  Canal.  There  will  be  some 
traffic  from  places  north  and  east  of  Hongkong  and  Manila  that  will  be  taken  to  New  York  and  the  Atlantic- 
Gulf  seaboard  of  the  United  States  by  way  of  Suez,  and  it  is  equally  certain  that  some  vessels  will  start  from 
points  west  of  Hongkong  and  Manila  and  proceed  by  way  of  Panama  to  the  eastern  ports  of  the  United  States- 
There  will  be  an  overlapping  of  routes  between  Singapore  and  Yokohama. 

The  fuel  expenses  for  round-trip  voyages  between  the  Atlantic-Gulf  seaboard  of  the  United  States  and 
the  Orient  east  of  Singapore  will  be  so  much  less  by  Panama  than  by  Suez  as  to  make  it  certain  that  the 
Panama  route  will  be  taken  by  practically  all  the  trade  between  the  eastern  part  of  the  United  States  and 
Japan,  China,  and  the  Philippines.  ToUs  at  Panama  equal  to  those  at  Suez  will  not  cUvert  from  the  Ameri- 
can route  any  considerable  amount  of  the  commerce  between  the  United  States  and  the  Pacific  seaboard 
of  Asia. 

Europe  will  trade  with  the  Orient  east  of  Singapore  mainly  by  way  of  the  Suez  Canal.  The  fine  cormecting 
points  equally  distant  from  Liverpool  via  Panama  and  Suez  runs  347  miles  east  of  Yokohama.  (The  line 
connecting  points  equally  distant  from  Liverpool  via  the  Panama  and  Suez  routes  is  located  in  plate  2  at  the 
end  of  this  volume.)  Traffic  opportunities  at  intermediate  ports  ^vill  decide  whether  vessels  take  the  Suez  or 
Panama  route  between  Europe  and  Japan,  China,  or  the  Phihppines.  For  voyages  between  northern  Europe 
and  China,  fuel  expenses  will  be  less  via  Suez :  while  to  and  from  Japan  coal  costs  will  be  slightly  lower  via 
Panama. 

With  tolls  at  Panama  not  exceeding  those  at  Suez,  the  Panama  Canal  can  secure  a  small  share  of  Europe's 
traffic  with  the  Far  East.  The  tonnage  to  be  competed  for  is  heavy.  In  1910  the  European  entrances  and 
clearances  of  vessels  engaged  in  the  oriental  trade  amounted  to  nearly  12,000,000  tons  net  register.  If  it  should 
be  possible  for  the  canal  to  secure  20  per  cent,  or  even  10  per  cent,  of  this  tonnage  the  traffic  of  the  American 
waterway  and  its  revenues  would  be  appreciably  increased.  However,  in  estimating  the  tonnage  of  available 
Panama  traffic  it  has  not  been  assumed  that  the  American  route  would  secure  any  of  the  East  Indian  and  Chinese 
commerce  with  Europe.  Indeed,  the  only  European-oriental  trade  credited  to  the  Panama  route  was  5  per 
cent  of  the  shipping  engaged  in  the  trade  between  Europe  and  Japan. 

Summary  of  the  Considerations  that  Should  Control  in  Fixing  Panama  Tolls. 

1.  In  managing  the  Panama  Canal  and  in  fixing  tolls,  the  usefulness  of  the  watei-way  to  commerce  and 
industry  should  be  given  first  consideration.  The  poficy  as  regards  tolls  and  revenue  should  not  be  allowed  to 
Umit  the  traffic  usefulness  of  the  waterway. 

2.  The  Panama  Canal  should  be  made  commercially  self-supporting.  Tolls  based  upon  the  value  of  the 
service  rendered  by  the  canal  are  justifiable.  Those  who  use  the  waterway  may  justty  be  required  to  make 
some  compensation  for  the  benefits  received.  Tolls,  not  unduly  restricting  the  commercial  usefulness  of  the 
waterway,  may  be  levied  that  will  yield  revenue  enough  to  meet  operation,  maintenance,  sanitation,  govern- 
ment, annuity,  and  interest  charges. 

3.  The  same  rate  of  toll  should  be  charged  upon  American  as  upon  foreign  vessels,  because — 

(a)  The  omission  or  repayment  of  tolls  on  American  shipping  would  be  of  assistance  mainly  to  our  coastwise 
shipping  wliich  does  not  need  aid  and  would  be  of  but  little  help  to  American  vessels  engaged  in  the  foreign 
trade. 

(b)  Such  subsidies  as  are  given  the  American  merchant  marine  should  be  paid  to  vessels  employed  in  our 
foreign  trade;  but  the  remission  or  repayment  to  vessel  owners  of  Panama  tolls  on  American  ships  in  the  foreign 
trade  would  be  an  ineffective  subsidy  that  might  invite  retaliatory  measures  by  foreign  governments. 

(c)  The  exemption  of  coastwise  shipping  from  Panama  tolls  would  inure  mamly  to  the  benefit  of  the  coast- 
wise carriers  and  only  partially  to  the  benefit  of  shippers  and  consumers.  Neither  the  rates  of  the  steamship 
lines  nor  the  charges  of  the  rail  carriers  will  be  appreciably  higher  if  tolls  are  charged  on  coastwise  shipping 
than  they  will  be  if  such  shipping  is  reheved  from  the  payment  of  tolls. 

4.  The  United  States  should  adhere  to  business  principles  in  the  management  of  the  Panama  Canal.  The 
Government  needs  to  guard  its  revenues  carefully.     Present  demands  on  the  general  budget  are  heavy  and  are 


202  PANAMA.  CANAL  TRAFFIC  AND   TOLLS. 

certain  to  be  larger.  Taxes  must  necessarily  increase.  Those  who  directly  benefit  from  using  the  canal,  rather 
than  the  general  taxpayers,  ought  to  pay  the  expenses  of  operating  and  carrying  the  Panama  Canal  commer- 
cially. 

5.  The  tolls  at  Panama  should  be  such  as  to  enable  the  canal  (a)  to  divert  from  the  Straits  of  Mao-ellan  all 
the  traffic  of  the  Pacific  coast  of  South  America,  (b)  to  prevent  the  use  of  the  Cape  of  Good  Hope  route  by  the 
commerce  between  the  Atlantic-Gulf  coast  of  the  United  States  and  AustraHa,  (c)  to  divert  from  the  Suez  Canal 
the  trade  between  the  eastern  seaboard  of  the  United  States  and  the  Orient  east  of  Singapore,  and  (d)  to  com- 
pete with  the  Suez  Canal  for  a  portion  of  Europe's  commerce  with  the  Far  East. 


CHAPTER   XIII. 


PANAMA  TOLLS  II. 

RATES  OF  TOLL-GROSS  AND  NET   REVENUE. 


ao3 


CHAPTER  XIII. 


PANAMA  TOLLS  II— RATES  OF  TOLL— GROSS  AND  NET  REVENUE. 

BASES    OF   TOLLS. 

For  reasons  that  have  been  briefly  stated  in  Chapter  IX  of  this  report  and  which  are  discussed  in  detaU 
in  the  volume  upon  the  ^leasurement  of  Vessels,  it  is  recommended  that  the  tolls  levied  upon  merchant  vessels 
for  the  use  of  the  Panama  Canal  be  based  upon  net  vessel  tonnage  so  determined  as  to  express  the  ship's 
earning  capacity,  and  that  the  tolls  upon  war  vessels  be  based  upon  displacement  tonnage.  It  is  recommended 
that  the  same  basis  for  the  levy  of  tolls — net  tonnage  or  actual  earning  capacity — be  adopted  for  both  freight 
and  passenger  vessels,  that  spaces  occupied  by  passengers  and  freight  pay  the  same  rate  of  tolls,  and  that  no 
tolls  be  levied  on  passengers.     Reasons  for  these  recommendations  may  be  briefly  considered. 

REASONS    WHY   PASSENGER   TOLLS   SHOULD   NOT   BE    LEVIED. 

ToUs  on  passengers  are  imjustifiable,  because  the  coUection  of  such  charges,  in  addition  to  toUs  upon  the 
earning  capacity  of  a  vessel,  or  its  actual  net  tonnage — the  entire  space  available  for  freight  and  passengers^ 
imposes  an  unjustifiable  double  tax  upon  the  portion  of  the  ship  devoted  to  passenger  accommodations.  The 
space  occupied  by  passengers  ought  not,  for  the  following  reasons,  to  be  taxed  more  heavily  than  the  portion  of 
the  ship  in  which  freight  is  carried : 

(a)  In  vessels  fitted  to  carry  both  freight  and  passengers  the  revenue  derived  from  the  passenger  accom- 
modations is  more  variable  and  less  certain  than  the  earnings  secured  from  the  ship's  freight  capacity.  Vessels 
devoted  entirely,  or  in  large  part,  to  the  transportation  of  passengers  may  at  times  be  liighly  profitable,  but  are 
less  reliable  revenue  producers,  year  by  year,  than  are  ships  that  carry  cargo  only.  Vessels  that  transport 
passengers  must  be  run  upon  schedule  time.  They  can  not  remain  in  port,  as  freight  vessels  usually  can,  until 
all  or  a  large  share  of  the  accommodations  have  been  disposed  of.  Passenger  travel,  furthermore,  is  more 
seasonal  and  otherwise  more  variable  than  freight  sliipments  are ;  and  it  is  more  difficult  to  shift  passenger 
vessels  from  one  route  to  another  than  it  is  to  change  freight  carriers,  as  the  volume  of  freight  fluctuates,  from 
ports  of  light  traffic  to  those  to  and  from  which  freight  movements  are  temporarily  heavy. 

(6)  The  double  taxation  of  the  space  occupied  by  the  passenger  cabins,  resulting  from  levying  tolls  both 
upon  passengers  and  upon  net  vessel  tonnage,  is  objectionable,  because  steamship  companies  may  thereby  be 
induced  to  give  passengers,  especially  those  in  the  third  cabin,  less  space  per  person  than  would  otherwise  be 
provided.  Even  in  the  second  and  tliird  cabins  the  effect  of  passenger  tolls  may  be  the  restriction  of  spaces 
devoted  to  social  halls  and  recreation  rooms.  It  is  said  that  the  passenger  tolls  charged  by  the  Suez  Canal  Co. 
have  thus  unfavorably  influenced  the  arrangements  of  the  passenger  accommodations  on  vessels  operated 
tlirough  that  waterway. 

The  substitution  of  passenger  tolls  for  toUs  upon  the  capacity,  or  net  tonnage,  of  the  space  occupied  by 
passenger  accommodations  would  not  be  justifiable,  because  the  per  capita  levy,  mdess  made  exceptionally 
large,  would  tax  passenger  accommodations  too  lightly  as  compared  with  the  spaces  occupied  by  freight.  The 
most  scientific  and  most  equitable  basis  of  tolls,  both  upon  freight  and  upon  passenger  spaces,  is  the  net  tonnage 
of  vessels,  so  calculated  as  accurately  to  express  earning  capacity. 

THE  RATES  OF  TOLL  RECOMMENDED. 

The  following  rates  of  toll  upon  merchant  ships  and  war  vessels  are  recommended : 

On  merchant  vessels,  carrying  passengers  or  cargo,  $1.20  per  net  vessel  ton,  or  each  100  cubic  feet,  of  actual 
earning  capacity. 


206  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

On  vessels  in  ballast,  without  passengers  or  cargo,  40  per  cent  less  than  the  rate  of  toll  upon  vessels  with 
passengers  or  cargo. 

Upon  all  naval  vessels  other  than  transports,  coUiers,  hospital  ships,  and  supply  ships,  50  cents  per  displace- 
ment ton. 

Upon  Army  and  Navy  transports,  colliers,  hospital  ships  and  supply  ships,  $1.20  per  net  ton,  the  vessels 
to  be  measured  by  the  same  rules  as  are  employed  in  determining  the  net  tonnage  of  merchant  vessels. 

REASONS    FOR    RECOlfMENDING   TOLLS    OF    $1.20    PER    NET   TON    UPON    LOADED    MERCHANT    VESSELS. 

Panama  tolls  should  be  so  adjusted  as  to  fulfill  three  conditions:  The  rate  of  toll  should  be  low  enough  to 
enable  the  canal  to  compete  actively  with  alternative  and  rival  routes;  the  rate  should  not  be  so  high  as  imduly 
to  burden  or  seriously  to  restrict  the  usefulness  of  the  canal;  and  the  rate  should  be  high  enough  to  yield 
revenues  that  vnH  make  the  canal  commercially  self-supporting. 

A  toll  of  $1.20  per  net  ton  on  loaded  merchant  vessels  and  a  reduction  of  40  per  cent  from  the  standard 
rate  in  the  case  of  vessels  in  ballast  wall  place  the  Panama  Canal  and  its  rival,  the  Suez  Canal,  upon  an  equal 
competitive  footing.  The  Suez  rates,  beginning  January  1,  1913,  are  to  be  6.25  francs  ($1,206)  for  loaded  vessels 
and  3.75  francs  ($0,724)  for  ships  in  ballast. 

The  Panama  Canal  must  compete  with  the  Suez  route  for  the  commerce  of  the  eastern  seaboard  of  the 
United  States  and  of  the  Atlantic-North  Sea  ports  of  Europe  with  the  Orient  east  of  Singapore.  For  voyages 
between  the  eastern  ports  of  the  United  States  and  the  Orient,  fuel  expenses  via  Panama  \n\l  be  less  than  by 
way  of  Suez;  and,  with  equal  tolls  at  each  canal,  the  Panama  route  will  readily  secure  the  traffic. 

It  is  not  to  be  expected  that  much  of  the  commerce  of  Europe  with  the  Pacific  seaboard  of  Asia  can  be 
diverted  to  Panama  from  its  present  route  via  Suez.  Distances  are  less  via  Suez;  and,  with  the  exception  of 
voyages  from  north  Europe  to  Japan  and  return,  the  fuel  expenses  are  lower  by  way  of  Suez.  With  equal  toUs 
at  Panama  and  Suez,  some  vessels  wUl  take  the  Panama  route  between  Japan  and  Europe  in  order  to  discharge 
and  secure  cargo  at  American  ports.  To  attract  from  the  Suez  to  the  American  route  any  considerable,  addi- 
tional share  of  the  European-Oriental  tonnage,  the  rates  of  toU  at  Panama  would  have  to  be  made  so  low  as  to 
reduce  unjustifiably  the  revenues  of  the  canal.  Neither  traffic  considerations  nor  probable  financial  results 
warrant  the  charging  of  lower  toUs  at  Panama  than  at  Suez,  for  the  purpose  of  mcreasing  the  use  of  the  American 
canal  by  the  commerce  of  Europe  with  the  Orient. 

A  Panama  toU  of  $1.20  per  net  ton  will  not  unduly  burden  the  commerce  served  by  the  canal.  The  costs 
of  transportation  between  the  two  seaboards  of  the  United  States  will  be  reduced  several  times  the  amount  of 
the  toU;  and,  for  the  commerce  of  the  eastern  seaboard  of  the  United  States  \vith  western  South  America  and 
with  Australia,  the  economies  effected  by  the  Panama  Canal  wiU  largely  exceed  the  toU  suggested.  Likewise  the 
saving  in  time  and  fuel  expenses  via  Panama,  as  compared  wath  the  Magellan  route,  between  our  eastern  sea- 
board and  New  Zealand  wiU  be  such  as  to  insure  the  profitable  use  of  the  Panama  Canal. 

Nor  will  a  toU  of  $1.20  per  net  ton  seriously  restrict  the  use  of  the  canal  by  European  countries.  For 
the  commerce  of  Europe  wath  Chile  and  with  New  Zealand,  the  saving  resulting  from  the  shortening  of  the 
time  of  voj^age  via  Panama,  as  compared  with  the  Straits  of  Magellan,  would  not  warrant  the  payment  of  tolls 
of  $1.20  per  net  vessel  ton  for  using  the  Panama  Canal;  but  the  fuel  expenses  via  Panama  will  be  so  much 
less  than  via  Magellan  as  to  make  the  canal  route  preferable,  even  with  tolls  of  $1.20  per  net  ton.  Moreover, 
the  profitable  trade  route  between  Europe  and  Cliile  is  via  Panama  and  the  ports  intermediate  between  the  Isth- 
mus and  Valparaiso.     Panama  is  the  natural  entrance  and  exit  for  the  west  coast  South  American  trade. 

The  normal  growth  of  the  traffic  of  the  Panama  Canal  will  not  be  interfered  \\ath  by  a  toU  of  $1.20  per 
net  ton.  The  tonnage  of  shipping  using  the  Suez  Canal  has  increased  rapidly,  the  growth  of  traffic  having 
been  about  70  per  cent  durmg  the  past  10  years,  although  the  toUs  at  the  opening  of  the  decade  were  $1.74 
per  net  ton,  and,  in  1911,  $1.30 — a  higher  rate  than  is  recommended  for  Panama.  It  is  suggested  that  the 
toUs  at  Panama  start  with  the  relatively  low  rate  to  which  the  Suez  charges  will  have  been  brought  in  1913,  at 
the  end  of  43  years  of  traffic  development. 

FORTY    PER    CENT   DEDUCTION    IN    TOLLS    ON    SHIPS    IN    BALLAST. 

From  the  1st  of  January,  1913,  the  Suez  Canal  tolls  will  be  6.25  francs  ($1,206)  per  ton  net  on  loaded  mer- 
chant vessels,  and  3.75  francs  ($0.72)  per  net  ton  on  vessels  in  ballast.  A  rebate  of  2.50  francs  per  net  ton  in  the 
rate  of  toU  when  vessels  are  in  ballast  will  be  a  deduction  of  40  per  cent  from  the  rate  payable  by  loaded  vessels. 


PANAIMA  CANAL  TRAFFIC  AND  TOLLS.  207 

This  is  a  much  larger  percentage  deduction  than  has  formerly  been  made.  Wlien  the  Suez  Canal  was  opened 
the  rate  of  tolls  on  loaded  merchant  vessels  was  10  francs,  and  upon  vessels  in  ballast  2.50  francs  (25  per  cent) 
less  than  the  regular  rate.  In  1874  the  Suez  tolls  were  increased  to  13  francs  per  net  ton  upon  loaded  vessels, 
and  the  rate  remained  above  10  francs  until  1884.  During  this  period,  however,  the  reduction  made 'for  vessels 
n  ballast  remained  2.50  francs.  In  1893,  when  the  regular  rate  of  tolls  on  loaded  vessels  became  9  francs,  the 
reduction  made  for  vessels  in  ballast  amounted  to  about  28  per  cent.  In  1912  the  toU  upon  loaded  vessels 
became  6.75  francs  per  net  ton,  the  reduction  for  ships  in  ballast  amounting  to  37  per  cent.  If  vessels  in  ballast 
using  the  Panama  Canal  are  charged  toUs  40  per  cent  less  than  are  levied  upon  loaded  vessels,  the  percentage 
of  reduction  will  be  greater  than  the  Suez  Canal  Co.  granted  prior  to  1913. 

The  policy  of  the  Suez  Canal  Co.  has  been  to  make  an  absolute,  instead  of  a  percentage,  deduction  from 
the  standard  rate  of  toUs  in  favor  of  vessels  in  ballast.  A  percentage  reduction  is  more  logical,  and  is  fairer 
to  the  two  classes  of  vessels.  When  once  an  equitable  relationsliip  between  the  dues  payable  by  loaded  vessels 
and  by  vessels  in  ballast  has  been  established,  a  reduction  in  the  standard  rate  of  toll  payable  by  loaded  slups 
automatically  lowers,  by  a  just  amount,  the  charges  payable  by  vessels  M'ithout  passengers  or  cargo. 

TOLLS    OF   50    CENTS    PER   DISPLACEMENT   TON    LTPON    WAR    VESSELS. 

Naval  vessels — battleships,  armored  and  imarmored  cruisers,  torpedo  boats,  and  torpedo-boat  destroyers — 
are  not  constructed  for  the  transportation  of  freight  and  passengers.  They  are  fighting  machhies,  not  commer- 
cial carriers;  they  have  no  "earning  capacity,"  and  can  have  no  real  net  tonnage.  The  size  of  such  vessels  is 
always  indicated  by  their  displacement.  It  is,  accordingly,  recommended  that  the  tolls  upon  warships  be 
levied  upon  displacement  tonnage,  and  that  the  rate  of  toU  be  50  cents  per  ton. 

Auxiliary  vessels  required  by  the  army  and  navy — colliers,  transports,  supply  ships,  and  hospital  ships — 
may  readily  be  measured  to  determine  their  net  tonnage;  and  it  is  recommended  that  such  vessels  be  charged 
the  same  toUs  as  are  levied  upon  merchant  vessels — $1.20  per  net  ton. 

The  Suez  Canal  Co.  applies  its  measurement  rules  to  warships  as  well  as  to  merchant  vessels;  and  the 
tolls  upon  warships  are  based  upon  an  artificial  net  tonnage  thus  determined,  the  rate  of  tolls  bemg  the  same 
as  upon  merchant  shipping.  That  the  calculation  of  a  net  tonnage  for  war  vessels  is  difficult  and  the  results 
arbitrary  is  indicated  W  the  experience  of  the  United  States  naval  constructors  in  applying  the  Suez  measure- 
ment rules  to  American  naval  vessels.  The  Bureau  of  Construction  and  Repair  in  the  Navy  Department  found, 
in  apphnjig  the  Suez  rules  to  our  warships,  that  numerous  questions  arose  which  the  naval  constructors  could 
not  answer  without  securing  rulings  from  the  Suez  Canal  authorities.  Lists  of  questions  were  twice  submitted 
to  the  Suez  Canal  Co.;  and,  after  great  labor,  the  Bureau  of  Construction  and  Repair  prepared  a  book  of  instruc- 
tions to  be  followed  m  calculating  the  net  tonnage  of  American  warships  according  to  the  Suez  rules.  The  book 
thus  prepared  by  the  bureau  is  printed  as  an  appendix  to  the  volume  upon  The  Measurement  of  Vessels. 

A  toll  upon  warships  of  50  cents  per  displacement  ton  is  somewhat  more  than  the  equivalent  of  a  charge 
of  $1.20  per  net  ton  calculated  in  accordance  with  the  measurement  rules  of  the  Suez  Canal  Co.  The  net  ton- 
nage of  the  American  battleships  and  armored  cruisers  measured  by  the  Bureau  of  Construction  and  Repair 
in  accordance  ■with  the  Suez  rules  was  found  to  average  35  per  cent  of  the  displacement  tonnage,  for  unarmored 
cruisers  the  net  tonnage,  Suez  measurement,  was  36  per  cent  of  the  displacement,  and  for  torpedo  boats  55  per 
cent.  A  toll  of  $1.20  per  net  ton  would  thus  have  been  equal  to  a  charge  of  42  cents  per  displacement  ton  in 
the  case  of  battleships  and  armored  cruisers,  to  43  cents  per  displacement  ton  for  unarmored  cruisers,  and  66 
cents  per  displacement  ton  for  torpedo  boats.  The  application  of  British  measurement  rules  to  battlesliips 
gives  a  ratio  of  net  tonnage  to  displacement  higher  than  the  Suez  rules  produce.  In  the  volume  on  "War- 
ships," by  Edward  L.  Atwood,  member  of  the  Royal  Corps  of  Naval  Constructors  (England),  the  net  tonnage 
of  battleships  is  stated  to  be  39  per  cent  of  their  displacement  tonnage. 

A  toU  of  50  cents  per  displacement  ton  imposes  a  somewhat  higher  charge  upon  warships  than  is  recom- 
mended for  merchant  vessels.  The  ratio  of  net  tonnage  to  load  displacement  of  merchant  ships  varies  widely 
with  the  type  of  vessel,  but  averages  about  1  to  3.  A  toll  upon  merchant  vessels  of  $1.20  per  net  ton  is 
equal  to  about  40  cents  per  ton  of  displacement. 

The  Panama  toUs  on  warships  ought,  for  several  reasons,  to  be  somewhat  higher  than  upon  merchant  vessels: 

1.  Comparatively  few  naval  vessels  wiU  use  the  canal,  and  they  avtII  be  of  large  average  size  and  of  relatively 
deep  draft.     The  battleships  and  cruisers  will  be  among  the  largest  sliips  using  the  canal. 

2.  The  risks  incurred  by  the  canal  authorities  m  passing  warships  through  the  locks  will  be  greater  than  those 
incident  to  the  lockage  of  merchant  ships.     Special  care  will  also  need  to  be  taken  to  avoid  delaying  warships  in 


208 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


transit.     Any  detention  of  a  fleet  of  war  vessels  might  be  made  tlie  basis  of  heavy  damage  claims  against  the 
United  States. 

3.  While  the  policy  of  charging  merchant  sliippmg  canal  tolls  equal  to  the  value  of  the  service  rendered  by 
the  canal  would  not  be  defensible,  the  policy  of  charging  war  vessels  tolls  in  accordance  with  the  value  of  the 
service  would  be  theoretically  justifiable.  Such  charges  upon  warsliips  are  not  recommended;  but  it  is  believed 
that  the  tolls  levied  upon  such  vessels  should  be  large  enough  to  cover  the  expenses  and  risks  incurred  by  the 
United  States  in  performing  the  service  of  passing  naval  fleets  through  the  canal.  The  toUs  upon  merchant 
vessels  should  be  fixed  low  enough  to  enable  the  Panama  Canal  effectively  to  promote  the  commerce  of  the 
United  States  and  of  the  world;  but  the  United  States  Government  is  not  called  upon  to  make  the  Panama 
Canal  toUs  upon  warships  low  for  the  purpose  of  lightening  the  naval  burdens  of  foreign  countries.  In  sending 
their  warships  through  the  Panama  Canal  foreign  nations  should  pay  toUs  high  enough  to  cover  costs  and 
risks  incurred  by  the  canal  authorities  in  performing  the  service  rendered. 

ESTIMATED    GEOSS   AND    NET    REVENUE. 

The  gross  revenues  of  the  Panama  Canal  will  depend  upon  three  factors — the  rate  of  tolls,  the  total  volume 
and  rate  of  growth  of  traflic,  and  the  share  of  traffic  subjected  to,  or  exempted  from,  tofls. 

If  the  rate  of  increase  in  available  canal  tonnage  that  has  prevailed  since  1899,  60  per  cent  per  decade, 
shall  continue  up  to  1915,  the  tonnage  of  vessels  using  the  canal  diu-ing  the  first  two  yeara  of  its  operation  %vill 
amount  to  about  10,500,000  tons  per  annum.  If  the  conservative  assumption  be  made  that  this  rate  of  increase 
will  continue  during  the  fii-st  decade  of  the  canal's  operation,  the  shipping  using  the  Panama  Canal  in  1925 
will  amount  to  17,000,000  tons  net  register.  This  estimate  takes  no  account  of  the  influence  of  the  canal  in 
acceleratmg  the  growth  of  traffic.  The  toimage  of  the  Suez  Canal  has  increased  about  70  per  cent  dm-ing  the 
past  decade,  and  it  seems  safe  to  assume  that  the  traffic  of  the  Panama  Canal  will  reach  17,000,000  net  tons 
by  1925. 

The  shipping  using  the  Panama  Canal  may  be  subdivided  into  three  classes:  That  engaged  in  the  coast- 
wise commerce  between  the  two  seaboards  of  the  United  States,  American  shipping  employed  in  carrying  the 
foreign  commerce  of  the  United  States,  and  foreign  shipping  carrying  the  commerce  of  the  United  States  and 
foreign  countries.  The  following  table  states  the  probable  volume  of  each  of  these  tliree  classes  of  shipping 
during  the  first  two  years  of  the  operation  of  the  canal,  diu-ing  1920,  and  during  1925: 

Table  I.— CLASSIFICATION   OF   ESTIMATED   NET   TONNAGE   OF   SHIPPING   USING   THE  PANAMA  CANAL  IN  1915, 

1920,  AND  1925. 


Average 
per  armum 
during  1915 

and  1916. 


Coast-to-coast  .American  shipping 

American  shipping  carrying  foreign  commerce  of  the  United  States 

Foreign  sliippiBg  carrying  commerce  of  the  United  States  and  foreign  countries . 


1.000.000 

720,000 

8,780,000 


1,414,000 

910,000 

11.020,000 


2,000.000 
1,150,000 
13.850,000 


The  figiu"es  given  in  the  above  table  for  the  tonnage  of  coast-to-coast  American  shipping  that  may  be 
expected  to  use  the  Panama  Canal  during  the  first  year  or  two  of  its  operation  are  obtained  by  estimating  that 
the  toimage  of  traffic  that  was  available  in  1910  will  have  increased  to  1,000,000  net  tons  by  1915.  During 
1911  and  1912,  the  rate  of  increase  has  been  more  rapid  than  this;  but,  in  order  to  be  on  the  safe  side,  this 
has  been  the  rate  of  increase  assumed.  It  is  believed,  however,  that  the  canal  will  greatly  increase  the  traffic 
carried  by  water  between  the  two  seaboards  of  the  United  States.  In  constructing  the  above  table,  it  was 
estimated  that  the  intercoastal  shipping  through  the  canal  would  double  during  the  decade  ending  with  1925. 
At  that  rate  of  increase,  the  coast-to-coast  American  shipping  through  the  canal  will  amount  to  1,414,000 
tons  in  1920. 

In  deciding  upon  the  tonnage  of  American  shipping  that  wiU  be  employed  in  carrying  the  foreign  commerce 
of  the  United  States  through  the  canal,  it  was  necessary  to  depend  mainly  upon  conjecture.  In  1909-10  the 
total  shipping,  American  and  foreign,  employed  in  carrying  that  part  of  the  foreign  trade  of  the  United  States 
that  would  have  used  a  Panama  canal  had  it  been  in  existence,  amounted  to  2,856,900  net  tons.  An  increase 
in  this  tonnage,  at  the  rate  of  60  per  cent  per  decade,  raises  the  figures  to  3,600,000  net  tons  in  1915.     It  was 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


209 


assumed,  in  constructing  the  table,  that,  shortly  after  the  opening  of  the  Panama  Canal,  one-fLfth  of  the  foreign 
commerce  of  the  United  States  carried  through  the  canal  would  be  transported  in  vessels  flying  the  American 
flag.  It  is  possible  that  this  estimate  overstates  the  tonnage  of  American  shipping  that  will  be  used  in  our 
foreign  commerce  through  the  canal. 

At  the  present  time  about  9  per  cent  of  the  value  of  the  entire  foreign  commerce  of  the  United  States  is 
carried  in  American  bottoms.  Twenty-three  per  cent  of  the  total  tonnage  of  entrances  and  clearances  at 
our  ports  of  vessels  employed  in  the  transportation  of  our  foreign  commerce  consists  of  ships  under  the  American 
flag;  but,  at  the  present  time,  most  American  ships  engaged  in  handling  the  foreign  commerce  of  the  United 
States  arc  employed  in  our  trade  with  Canada,  the  West  Indies,  Mexico,  and  Carribean  countries.  Only  a  small 
tonnage  of  American  sliips  is  employed  in  the  long-distance  foreign  trade  of  the  United  States.  This  situation 
should  be,  and  doubtless  will  be,  changed  to  some  extent  by  the  opening  of  the  Panama  Canal.  Some  of  the 
lines  operating  to  the  Carribean  will  be  extended  through  the  canal  to  engage  in  the  trade  with  the  west  coast 
of  Mexico,  Central  America,  and  South  America. 

It  is,  however,  not  probable  that  the  Anaerican  marine  in  the  foreign  trade  can  make  very  much  headway 
untU  our  navigation  laws  are  so  changed  as  to  permit  foreign-built  ships  to  be  purchased  for  registry  under 
the  American  flag  for  use  in  the  foreign  trade.  If,  before  the  canal  is  opened,  the  navigation  laws  of  the  United 
States  are  so  changed  as  to  permit  Americans  to  secure,  for  use  in  our  foreign  trade,  ships  as  cheaply  as  their 
competitors  can  obtain  them,  it  is  probable  that  fully  one-fifth  of  the  sliipping  employed  in  carrying  the  foreign 
commerce  of  the  United  States  through  the  canal  will,  within  a  few  years  after  the  opening  of  the  waterway, 
be  under  the  American  flag.' 

It  is  probable  that  the  foreign  trade  of  the  United  States  using  the  Panama  Canal  will  increase  at  least  60 
per  cent  during  the  first  decade.  If  it  be  assumed  that  20  per  cent  of  the  foreign  commerce  of  the  United  States 
through  the  canal  will  be  carried  in  American  ships,  there  will  be  720,000  tons  of  American  shipping  in  1915  or 
1916,  910,000  tons  in  1920,  and  1,150,000  tons  in  1925,  employed  in  carrying  that  part  of  the  foreign  trade  of 
the  United  States  wliich  makes  use  of  the  Panama  Canal.  It  is  recognized,  however,  that  not  even  this  small 
percentage  of  the  total  shipping  employed  in  handling  our  foreign  commerce  by  way  of  the  canal  will  consist 
of  American  vessels,  unless  our  navigation  laws  are  so  changed  as  to  reduce  the  handicap  which  the  owners  of 
American  vessels  now  have  in  competing  witli  the  owners  of  vessels  under  foreign  flags.' 

In  constructing  the  above  table,  it  was  estimated  that  the  total  traffic  of  the  Panama  Canal  would  increase 
at  the  rate  of  60  per  cent  per  decade  and  would  rise  from  an  average  of  10,500,000  tons  per  annum,  during 
the  first  year  or  two  of  the  canal's  operation,  to  17,000,000  tons  in  1925.  If  the  tonnage  of  shipping  employed 
in  the  intercoastal  trade  of  the  United  States  and  the  tonnage  of  vessels  under  the  American  flag  employed  in 
carrying  the  foreign  commerce  of  the  United  States  through  the  canal  are  correctly  estimated,  the  tonnage  of 
foreign  shipping  engaged  in  transporting  the  commerce  of  the  United  States  and  foreign  countries  through 
the  canal  wiU  rise  from  an  average  of  8,780,000  net  tons  per  annum,  during  1915  and  1916,  to  11,020,000  tons 
in  1920,  and  to  13,850,000  tons  in  1925.  Should  the  estimate  of  American  shipping  in  the  foreign  trade  prove 
to  be  too  large,  it  will  not  affect  the  estimate  of  the  total  shipping  using  the  canal;  for,  in  that  case,  a  larger 
volume  of  trade  will  be  handled  in  foreign  vessels. 

The  gross  revenue  that  may  be  secured  from  the  Panama  Canal,  with  tolls  at  .$1.20  per  net  ton  upon  all 
merchant  vessels,  and  the  estimated  share  of  the  total  receipts  that  would  be  secured  from  American  coastwise 
shipping,  from  American  vessels  engaged  in  carrying  the  foreign  commerce  of  the  United  States,  and  from 
foreign  shipping  are  stated  in  the  following  table: 

Tabi^  II.— classification  of  estimated  revenue  of  the  PANAMA  CANAL  AT  A  TOLL  OF  $1.20  PER  NET  TON 


Average  per 

annum 
during  1915 
and  1916. 


Coast-to-coast  American  shipping 

American  sliipping  carrying  loreign  commerce  of  the  United  States 

Poreign  shipping  carrying  commerce  of  the  United  States  and  foreign  countries 

Total 


SI, 200, 000 

804,000 

10,536,000 


81,696,800 
1,092,000 
13,224,000 


$2,400,000 
1,380,000 
16.620,000 


I  A  few  days  after  the  completion  of  this  report.  Congress  so  amended  the  navigation  laws  as  to  admit  foreign  built  ships,  owned  by  citizens  of  the  United  States, 
to  American  registry  for  use  in  foreign  trade.    This  law  was  a  part  of  the  Panama  Canal  act  of  Aug.  24, 1912. 


210  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  foregoing  table  does  not  take  account  of  the  fact  that  some  of  the  vessels  using  the  Panama  Canal  will 
be  without  cargo  or  passengers  and  wiU  pay  less  than  the  standard  rate  of  toU.  In  the  investigation  of  the 
tonnage  of  available  canal  traffic  it  was  found  that  96  per  cent  of  the  total  shipping  that  would  use  the  canal 
consisted  of  vessels  with  cargo  and  4  per  cent  of  ships  in  ballast.  Tliis  ratio  of  loaded  to  ballasted  vessels  is 
practically  the  same  as  prevails  in  the  traffic  of  the  Suez  Canal.  If  the  toUs  on  4  per  cent  of  the  total  traffic  of 
the  Panama  Canal  are  40  per  cent  less  than  the  standard  rate  of  81.20  per  net  ton,  the  revenue,  as  stated  in  the 
preceding  table,  should  be  reduced  by  1.6  per  cent.  This  reduction,  however,  has  not  been  made,  partly  for  the 
reason  that  the  table  does  not,  and  could  not,  take  account  of  the  revenue  that  may  be  received  from  toUs  upon 
war  ships. 

The  preceding  tables,  in  which  the  tonnage  of  canal  traffic  and  the  receipts  from  that  traffic  are  specffied, 
make  the  tonnage  of  canal  traffic  and  the  revenue  obtainable  therefrom  less  than  they  would  be  if  the  figures 
for  net  tonnage  were  determined  by  the  application  of  the  Suez  rules  to  the  measurement  of  vessels  engaged 
in  the  commerce  that  will  use  the  canal.  As  is  explained  in  the  volume  upon  "The  Measurement  of  Vessels," 
the  rules  followed  in  the  United  States,  Great  Britain,  Germany,  and  other  countries  In  measuring  vessels 
yield  a  lower  net  tonnage  than  do  the  Suez  rules.  If  measurement  rules  approximating  those  in  force  at  the 
Suez  Canal  are  adopted  for  the  measurement  of  vessels  using  the  Panama  Canal,  the  tonnage  and  revenues  of 
the  American  canal  will  be  somewhat  higher. 

Table  II  contains  an  estimate  of  the  amount  of  Panama  toUs  obtainable  from  American  and  foreign  ship- 
ping \mless  American  shipping  is  exempted  from  pajing  tolls.  The  amount  of  tolls  payable  by  American 
ships  would,  according  to  the  table,  rise  from  somewhat  over  82,000,000  per  annum  during  the  first  two  years 
of  the  operation  of  the  canal  to  about  83,780,000  during  1925,  provided,  as  is  improbable,  that  the  rate  of  toUs 
remained  81.20  per  net  ton  throughout  the  10-year  period.  Should  the  toUs  start  and  remain  at  81.20  per  net 
ton,  foreign  shipping  will  be  required  to  pay  about  810,500,000  in  tolls  per  annum  during  the  first  two  years  of 
the  operation  of  the  canal,  and  about  816,200,000  during  1925.  A  reduction  in  the  rate  of  toUs  before  1925 
will  cause  a  proportionate,  or  nearly  equivalent,  decrease  in  the  revenue  obtained,  both  from  American  and 
from  foreign  ships.  The  ^exemption  of  .\nierican  sliips  from  the  payment  of  toUs,  or  the  repayment  of  tolls 
to  the  owners  of  American  vessels,  will  mean  a  sacrifice  of  one-sixth  of  the  canal  revenues  during  the  early 
years  of  the  operation  of  the  canal  and  of  nearly  one-fifth  of  the  revenues  at  the  end  of  a  decade. 

It  has  been  estimated  by  the  Isthmian  Canal  Commission  that  the  annual  expenses  for  the  operation  and 
maintenance  of  the  Panama  Canal  during  the  early  years  of  its  operation  will  amount  to  83,500,000,  and  that 
8500,000  per  annum  wiU  cover  the  annual  outlay  for  sanitation  and  ci-\-il  administration,  provided  the  Canal 
Zone  is  made  a  Government  reservation  and  the  population  is  limited  to  the  canal  operatives  and  their  families. 
It  is  thus  anticipated  that  the  annual  expenses  for  the  operation  and  maintenance  of  the  canal  and  the  sanitation 
and  government  of  the  zone  wiU  amount  to  84,000,000.  The  canal  wiU  cost  8375,000,000.  This  sum  includes 
the  840,000,000  paid  the  French  Canal  Co.  and  the  810,000,000  given  the  Repubhc  of  Panama  for  the  canal 
concession.  The  cost  of  the  construction  work,  which  is  now  within  one  year  of  practical  completion,  has  been 
kept  within  the  estimates,  and  unless  unforeseen  contingencies  occur  the  canal  when  finished  will  have  required 
an  outlay  of  8375,000,000  on  the  part  of  the  United  States  Government.  The  interest  on  this  sum  at  3  per  cent 
per  annum  wiU  amount  to  811,250,000.  The  canal  concession  treaty  between  Panama  and  the  United  States 
requires  the  United  States,  beginning  in  1913,  to  pay  8250,000  annually  to  Panama.  Thus  the  total  annual 
expenses  for  the  operation  and  maintenance  of  the  canal,  the  government  and  sanitation  of  the  zone,  for  the 
annuity  to  Panama,  and  for  the  interest  on  the  investment  will  be  815,500,000. 

If  all  vessels,  American  and  foreign,  using  the  canal  are  required  to  pay  tolls  at  the  rate  of  81.20  per  net 
ton,  the  revenues  per  annum  duruig  the  first  two  or  three  years  of  the  canal's  operation  will  average  between 
twelve  and  thirteen  milHon  dollars.  By  the  end  of  the  first  decade  the  revenues  will  probably  have  risen  to 
820,000,000.  If  only  foreign  sliips  are  required  to  pay  toUs,  the  receipts  during  the  first  few  years  will  be 
between  ten  and  eleven  million  dollars  per  annum  and  will  rise  to  sixteen  or  seventeen  million  dollars  by  the 
end  of  the  first  10  years.  It  is  not  probable,  however,  that  the  rate  of  SI. 20  per  net  ton  will  be  maintained 
throughout  the  decade.  That  is  the  rate  that  will  be  charged  by  the  Suez  Canal  Co.  in  1913 ;  and  it  is  more  than 
probable  that  the  Suez  Canal  Co.  ^vill  reduce  its  tolls  below  that  rate  within  a  few  years  after  1913.  It  will 
probably  be  unwise  for  the  United  States  to  maintain  liigher  tolls  at  Panama  than  are  charged  at  Suez. 

It  will  hardly  be  possible  to  secure  from  foreign  shipping  enough  revenues  during  the  first  decade  of  the 
Panama  Canal's  operation  to  meet  all  operation,  depreciation,  interest,  annuity,  zone  government,  and  sanitation 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  211 

charges.  On  the  other  hand,  if  Panama  tolls  are  charged  both  upon  American  and  upon  foreign  ships  at  the 
rate  of  tolls  that  may  be  expected  to  prevail  at  Suez,  it  will  apparently  be  possible  to  secure  revenues  from  the 
Panama  Canal  that  will  make  it  commercially  self-supporting  durmg  the  first  decade. 

With  the  growth  of  traffic  through  the  Panama  Canal  during  the  second  and  succeeding  decades  of  its 
operation  it  will  be  possible,  with  tolls,  at  that  time,  of  not  exceeding  $1  per  net  ton,  for  the  United  States 
Government  to  secure  revenues  that  will  permit  of  the  ultimate  amortization  of  the  uivestment  in  the  canal. 
It  will  be  possible  and  advisable  for  the  United  States,  beginning  with  1925,  to  invest  1  per  cent  per  annum  of 
the  1375,000,000  investment  in  a  sinking  fund.  If  this  is  done,  the  annual  net  revenues  must  amount  to 
$19,250,000,  or  the  sum  of  $3,500,000  for  operation  and  maintenance,  $500,000  for  government  and  sanitation 
of  the  zone,  $11,250,000  for  interest,  $250,000  for  the  Panama  amiuity,  and  $3,750,000  for  the  smking  fund. 

Durmg  the  second  and  succeeding  decades,  moreover,  it  will  unquestionably  be  necessary  to  devote 
relatively  large  sums  per  annum  to  the  betterment  of  the  canal  to  keep  the  waterway  abreast  of  traffic 
needs.  Will  tliis  be  possible?  An  increase  of  60  per  cent  during  the  first  decade,  as  has  been  stated,  will 
bring  the  canal  traffic  to  17,000,000  net  tons  in  1925.  Should  tliis  rate  of  increase  continue,  as  it  undoubtedly 
will,  during  the  second  decade,  the  traffic  in  1935  will  amount  to  27,000,000  net  tons;  and  with  tolls  at  that 
time  of  $1  per  net  ton,  revenues  of  $27,000,000  per  annum  may  readily  be  obtained.  Receipts  of  tliis  amount 
would  enable  the  Government  to  meet  all  expenses,  inclucUng  operation,  maintenance,  betterments,  zone 
sanitation  and  government,  the  Panama  amiuity,  and  the  sinking  fund. 

The  figures  here  given  of  the  probable  traffic  and  possible  revenue  of  the  Panama  Canal  in  1925  and  1935 
are  estimates  based  upon  a  careful  study  of  the  rate  of  increase  of  the  commerce  of  the  United  States  and 
foreign  countries  and  of  the  development  of  the  traffic  of  the  Suez  Canal.  Wliile  it  is  never  safe  nor  scientific 
to  prophesy,  the  actual  history  of  commerce  during  the  past  20  years  clearly  indicates  that  the  estimates 
regarding  the  Panama  Canal  traffic  and  revenues  are  conservative.  If  they  shall  prove  to  be  so,  it  will  be  possible 
for  the  United  States,  without  unduly  burdenmg  commerce  or  restricting  the  usefulness  of  the  canal,  to  secure 
enough  revenues  during  the  first  20  years  to  make  the  canal  commercially  self-supporting.  To  follow  tliis 
policy  will  be  to  apply  business  principles  to  the  management  of  the  Panama  Canal,  and  to  prevent  its  being  a 
continuing  burden  upon  the  General  Treasury  and  upon  the  taxpayers  of  the  United  States. 


APPENDICES. 


.  34998°— 12 15 


EXPLANATORY  NOTE. 

The  preceding  Report  upon  Panama  Traffic  and  Tolls  was  authorized  by  the  President  "for 
the  purpose",  as  stated  in  the  instructions  issued  b}-  the  Secretary'  of  War,  "of  bringing  up  to 
as  late  a  date  as  practicable  the  data  contained  in  the  Report  of  the  Isthmian  Canal  Commission 
for  1899-1901  relative  to  the  industrial  and  commercial  value  of  the  Isthmian  Canal."  The 
entire  1901  Report  of  the  Isthmian  Canal  Commission,  of  which  the  report  on  the  industrial  and 
commercial  value  of  the  canal  was  a  part,  was  reprinted,  with  plates,  in  1904;  and,  for  that 
edition,  the  report  on  the  value  of  the  canal  was  slightly  revised.  In  1911,  a  separate  print, 
with  an  analytical  table  of  contents,  but  without  accompanying  folded  plates,  was  made  of  the 
report  on  the  value  of  the  canal.  The  issue  of  1911  is  here  reproduced,  without  change,  as 
Appendix  I.  It  has  not  been  deemed  necessary  to  reproduce  the  thirteen  plates  that  were  a  part 
of  the  1904  edition  of  the  report;  but  the  first  and  last  plates  of  the  series  have  been  revised  and 
republished  as  the  first  two  of  the  twelve  folded  plates  accompanying  this  report  on  Panama 
Canal  Traffic  and  Tolls. 

215 


APPENDIX   I. 


REPORT  ON  THE  INDUSTRIAL  AND  COMMERCIAL 
VALUE  OF  THE  ISTHMIAN  CANAL. 

By  EMORY  R.  JOHNSON,  Ph.  D. 


TABLE  OF  CONTENTS. 


REPORT  ON   INDUSTRIAL   AND   COMMERCIAL   VALUE  OF  THE   ISTHMIAN   CANAL. 

Page. 

Preface 223 

Chapter  1. — Scope  and  method  of  the  investigation. 

The  purposes  of  the  investigation ,  224 

The  industrial  and  commercial  sides  of  the  investigation , 224 

Scope  of  the  investigation 224 

Sources  of  information 224 

Character  of  the  conclusions 225 

Authorities  used  in  preparation  of  industrial  and  commercial  maps 225 

Chapter  II. — The  isthmian  canal  and  the  industries  and  trade  of  the  Southern  States. 

Geographical  relation  of  the  Southern  States  to  the  canal 227 

The  canal  and  the  cotton  industries 227 

The  iron  and  steel  industries  of  the  South 229 

The  exportation  of  southern  lumber  and  forest  products 230 

The  fertilizer  industries  of  the  Southern  States 231 

The  canal  and  the  commerce  of  the  Gulf  ports 232 

Chapter  III. — The  canal  and  the  industries  and  trade  of  the  northeastern  section  of  the  United  States. 

Geographical  limits  of  the  section 235 

Industrial  characteristics 235 

The  canal  and  the  textile  industries 236 

The  canal  and  the  commerce  of  the  North  Atlantic  porta  of  the  United  States 237 

Chapter  IV. — The  canal  and  the  Central  West. 

Indastrial  resources  of  the  Central  West 24] 

Present  routes  of  sliipnient  from  Central  West 242 

The  canal  and  the  industries  of  Cleveland 242 

Cincinnati  and  the  canal 243 

The  canal  and  Indiana 244 

The  canal  and  Illinois  and  Wisconsin 244 

The  canal  and  St.  Louis 245 

The  effect  of  the  canal  upon  the  transportation  facilities  of  the  Central  West 245 

Chapter  V. — The  canal  and  the  Pacific  coast  States. 

Pacific  coast  States  separated  from  their  best  marlcets 246 

The  canal  and  California 246 

The  canal  and  the  lumber  and  grain  industries  of  Oregon  and  Washington 248 

The  west-coast  fisheries 249 

The  hops,  wool,  and  mineral  industries  of  the  Pacific  coast 249 

Effect  of  the  canal  upon  the  trade  of  the  west-coast  ports 250 

Chapter  VI. — The  coal  supply  for  the  commerce  and  countries  of  the  Pacific — The  canal  and  the  coal  trade  of 

the  United  Stales. 

Industrial  and  commercial  importance  of  coal 252 

Sources  from  which  the  coal  consumed  on  the  Pacific  is  now  obtained 252 

Puget  Sound  coal 254 

The  fuel  supply  of  California 255 

Prices  and  costs  of  coal  in  different  sections  of  the  United  States 257 

River  transportation  of  coal  from  Pennsylvania,  West  Virginia,  and  Alabama 259 

Coal  prices  along  the  Suez  route 260 

Concerning  the  marketing  of  Appalachian  coal  west  of  the  uanal.. 260 

219 


220  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

Chapter  VII. — The  isthmian  canal  and  the  iron  and  steel  industries  of  the  United  States. 

rage. 

The  United  States  as  an  exporter  of  iron  and  steel  products 263 

Conditions  of  present  competition  of  the  United  States  with  Europe 264 

American  iron  and  steel  trade  witli  Pacific  countries 264 

The  manner  in  which  the  isthmian  canal  will  affect  the  American  iron  and  steel  industries  as  a  whole,  and 

those  of  the  Southern  States  in  particular 265 

Chapter  VIII. — The  canal  and  tlie  shipbuilding  and  maritime  interests  of  the  United  States. 

Importance  of  the  maritime  industries 266 

The  canal  and  shipbuilding 266 

The  ownership  of  ocean  ve-^sels  by  exporters 267 

The  canal  and  the  American  merchant  marine 268 

Chapter  IX. — Concerning  the  use  of  an  isthmian  canal  by  sailing  vesssls. 

The  place  of  the  sailing  vessel  in  the  commerce  of  the  world  and  of  the  United  States 269 

The  future  use  of  sailing  vessels  by  special  classes  of  traffic 271 

Tonnage  of  steam  and  sailing  vessels  clearing  from  United  Kingdom  and  Germany  for  eastern  countries 272 

Merits  of  the  steamer  and  sailing  vessel  compared 273 

Would  sailing  vessels  use  a  canal  at  Panama  or  across  Nicaragua 274 

Saving  to  sailing  vessels  by  use  of  isthmian  canal  instead  of  Cape  route 276 

Chapter  X. — The  canal  and  the  traffic  of  American  railways. 

General  statement  of  the  possible  effects  of  the  canal  upon  railway  traffic 279 

Concerning  the  statistics  of  transcontinental  railway  traffic 279 

The  nature  of  the  competition  of  the  canal  with  the  railways 280 

The  canal  and  the  traffic  of  the  Atlantic  roads 281 

The  canal  and  the  traffic  of  the  Gulf  roads , 281 

The  canal  and  the  traffic  of  the  railways  of  the  Central  West 282 

Effect  of  the  canal  upon  the  traffic  of  the  Pacific  railways 283 

Conclusions 285 

Chapter  XI. — The  trade  and  industries  of  western  South  America  and  the  effect  of  the  canal  upon  them. 

Area  and  population  compared  with  North  America 286 

The  trade  zones  of  South  America 287 

Inadequate  transportation  facilities  of  western  South  America 287 

Dependence  of  western  South  America  upon  foreign  capital  and  large  organizations  of  capital 288 

Disadvantages  of  the  United  States  in  trading  with  western  South  America;  effect  of  the  isthmian  canal 289 

Geography,  resources,  and  industries  of  Chile 291 

The  canal  and  tne  trade  of  the  United  States  with  Chile 293 

Tropical  section  of  western  South  America;  general  description 294 

The  Peruvian  coast;  its  industries  and  the  effects  of  the  canal  upon  them 294 

The  Andean  plateau ■ 295 

Relation  of  canal  to  industries  and  trade  of  eastern  slope  of  Andean  plateau 298 

Industries  of  Pacific  slope  of  Ecuador  and  Colombia 299 

The  Cauca  Valley  in  the  Colombian  Andes 299 

Summary  of  the  effect  which  the  canal  will  have  on  western  South  America 300 

Effect  of  canal  upon  Atlantic  South  America  will  not  be  great 301 

Chapter  XII. — Japan  and  the  isthmian  canal. 

The  salient  characteristics  of  Japan's  resources 302 

Japan  as  a  manufacturing  and  commercial  country 303 

Analysis  of  Japanese  trade  with  reference  to  effects  of  the  canal 304 

Ciapter  XIII. — China  and  the  isthmian  canal. 

Geographical  divisions  of  China 305 

Resources  and  trade  of  north  China,  Manchuria,  Hoangho  Valley,  and  Shantung 306 

Resources  and  trade  of  central  China,  Yangtse  Valley 307 

Resources  and  trade  of  southern  China 308 

The  foreign  trade  of  China 309 

Trade  of  United  States  with  China  and  effects  of  canal 309 

Chapter  XIV. — Tlie  canal  nnd  the  industries  aud  trade  of  Australasia. 

Australian  industries  require  large  foreign  trade -. 311 

The  canal  and  distances  to  Australia 3U 

General  geography  of  Australia 312 

Pastoral  and  agricultural  resources 312 

Mineral  resources t 313 

The  canal  and  the  commerce  of  Australia  with  the  United  States 314 

New  Zealand  and  the  canal .» 315 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  221 

Chapter  XV. — The  canal  and  the  Philippines  and  HawaiL 


1.    THE    PHILIPPINES. 


The  geography  and  industries  of  the  Philippines 316 

The  commerce  of  the  Philippines ....-...-..- ^|7 

The  location  of  the  Philippines  with  reference  to  trade  routes  from  the  United  btates dia 

II.    THE    HAWAIIAN    ISLANDS. 

Soil  and  climate  of  the  Hawaiian  Islands 320 

Resources  of  the  Hawaiian  Islands ^-^ 

The  canal  and  the  trade  of  Hawaii ^^^ 

Chapter  XVI. — The  canal  and  Central  America  and  western  Mcvico. 

I.  central  AMERICA. 

The  population  and  general  geography  of  Central  America 323 

The  Central  American  industries. - 323 

The  canal  and  the  foreign  trade  of  Central  America 324 

II.  western    MEXICO. 

Agricultural  resources  of  western  Mexico 3^° 


Mineral  resources. 


326 


The  canal  and  the  commerce  of  western  Mexico 327 

Chapter  XXll.  — Comparison  of  distances  by  the  isthmian  canal  and  other  routes. 

Distances  via  the  Nicaragua  and  IMagellan  routes  between  the  eastern  ports  of  the  United  States  and  the  ports 

of  the  west  coast  of  Xorth,  Central,  and  South  America 329 

Distances  from  Eumpe  to  Pacific  ports  via  the  Nicaragua  Canal  and  the  Straits  of  Magellan 330 

Distances  from  Atlantic  American  ports  to  Yokohama,  Shanghai,  and  Hongkong  via  the  Nicaragua  and  Suez 

routes ^^] 

Distances  from  American  Atlantic  ports  to  Manila  via  Nicaragua  and  Suez  routes 331 

Distances  between  the  eastern  seaboard  of  the  United  States  and  Australia  via  the  Nicaragua  and  Suez  routes.       332 

Distances  from  Liverpool  to  the  East  by  the  Suez  and  Nicaragua  routes 333 

Comparisons  of  distances  from  New  York  and  Liverpool  to  Australasian  and  Asiatic  ports  via  the  Nicaragua 

and  Suez  routes - ".""V"\;: ', 

Comparison  of  distances  from  American  and  European  Atlantic  ports  to  Pacific  ports  via  the  Nicaragua  and 

Panama  canals 334 

Chapter  XVIII. — Cargo  tonnage  of  the  e.cisting  maritime  commerce  that  woxtld  use  an  isthmian  canal  in  1S99. 

General  description  of  the  three  traffic  investigations  contained  in  the  report 336 

Nature  and  limitations  of  the  information  available  from  official  statistics 336 

Four  tables  giving  the  value  and  cargo  tonnage  of  that  part  of  the  foreign  trade  of  our  two  seaboards  that 

would  have  passed  through  an  isthmian  canal  in  1899 338 

Methods  employed  in  preparing  the  tables 34^ 

The  average  values  of  the  cargo  ton -. /  %;'•  •  V 

Tonnage  of  the  commerce  between  Europe  and  the  west  coast  of  South  and  Central  America  and  British 

Columbia  and  Hawaii 346 

Summary  of  the  cargo  tonnage  of  the  foreign  commerce  of  the  .\tlantic  American  seaboard  with  Pacific  coun- 
tries and  of  Europe  with  Pacific  America  in  1899 - 34/ 

Chapter  XIX.— Tonnage  of  the  vessels  emploijed  in  the  commerce  that  would  hare  used  an  isthmian  canal  in  1S99. 

Concerning  statistics  of  entrances  and  clearances 349 

Importance  of  the  Chilean  commerce - 351 

Vessel  tonnage  of  commerce  between  Europe  and  western  South  America 352 

European  trade  with  western  Central  America  and  Mexico 35^ 

Trade  of  the  west  coast  of  the  United  State.s,  British  Columbia,  an<l  Hawaii  with  Europe 353 

United  States  .\tlantic  coast  tonnage  with  foreign  countries 353 

Traffic  across  the  Isthmus  of  Panama 356 

Coasting  trade  of  the  United  States  available  for  the  canal •'  u  i;  "i"  "* 

Summary  of  commerce  of  Europe  with  Pacific  America  and  of  commerce  of  .\tlantic  United  States  with  Pacific 
countries 

Ch-apter  XX.  —  Trafic  investigation  by  the  new  Panama  Canal  Company— Comparison  of  results  of  the  three 

investigations. 

Plan  of  the  investigation 358 

Tonnage  of  vessels  engaged  in  trade  between  the  Atlantic  and  Pacific  Oceans ^5» 

Concerning  use  of  American  canal  by  commerce  of  Europe  with  the  Orient 360 

Evidences  of  increasing  number  of  round-the-world  voyages 361 

Tonnage  of  available  canal  traffic 36^ 

Comparison  of  the  tonnage  of  1 888  and  1898 363 

The  substitution  of  steamers  for  sailing  vessels 363 

Comparison  of  the  results  of  the  three  traffic  investigations 364 


222  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Chaptek  XXI. — Growth  of  canal  traffic  1S99  to  1914  and  1914  to  1934. 

Page. 

Rate  of  increase  shown  by  table  of  Panama  Canal  Company 366 

Growth  in  value,  1889-1899,  trade  of  United  States  Atlantic  coast  with  foreign  countries  on  the  Pacific!!!!!!!  366 

Increase  in  trade  between  Europe  and  western  coast  of  America 367 

Growth  in  trans-Pacific  trade  of  the  west  coast  of  the  United  States !!!!!!!  367 

Probable  available  canal  traffic  in  1914 "'  368 

Estimate  of  growth  of  traffic  during  first  decade  of  the  use  of  the  canal ! !  359 

Suez  Canal  traffic ""  369 

The  estimate  for  1924 !!!!!  371 

Chapter  XXII. — The  question  of  tolls. 

Concerning  the  general  policy  of  tolls 372 

Suez  canal  tolls  \  372 

Suez  Canal  tonnage  and  traffic  receipts 373 

Effect  of  tolls  upon  volume  of  traffic  of  Suez  Canal ]!  375 

Isthmian  canal  tolls  and  the  Chilean  traffic 375 

Isthmian  canal  tolls  and  the  Australian  trade !.!!!!  377 

The  Philippine  trade \_\\  378 


EEPOET  ON  THE  INDUSTRIAL  AND  COMMERCIAL  VALUE  OF  THE  ISTHMIAN  CANAL. 


By  Emory  R.  Johnson,  Ph.  D., 

ilember  of  the.  Isthmian  Canal  Commmion  June  9, 1899,  to  March  10,  1904,  and  Professor  of  Transportation  and  Commerce, 

University  of  Pennsylvania. 


The  information  upon  which  this  report  is  based  was  secured  mainly  during  1900  and  the 
latter  half  of  1899.  The  report  was  written  during  1900  and  the  early  part  of  1901.  The 
Isthmian  Canal  Commission's  detailed  report,  of  which  this  is  an  appendix,  was  submitted  to  the 
President  in  November,  1901,  and  promptly  forwarded  by  him  to  Congress.  The  republication 
of  this  report,  after  nearly  three  years,  makes  certain  parts  of  the  discussion  less  up  to  date  than 
is  to  be  desired.  However,  I  have  had  an  opportunity  to  reedit  the  report  before  it  was  sent  to 
the  Public  Printer.  Several  changes  in  details  have  been  made  and  several  footnotes  have  been 
added  to  make  such  explanations  as  were  rendered  necessary  by  the  events  of  the  past  three  years. 

These  alterations  have  not  changed  the  original  character  of  the  report.  The  main  purpose 
of  the  investigation  was  to  analj'ze  the  relations  of  the  proposed  Isthmian  canal  to  American 
industries  and  commerce,  and  to  present  to  the  Commission  the  geographical  and  commercial 
facts  to  be  considered  in  deciding  whether  to  recommend  the  adoption  of  the  Nicaragua  or  the 
Panama  route.  Those  who  now  read  the  report  should  bear  its  purpose  in  mind.  Had  the  study 
been  made  three  years  later,  the  same  methods  would  have  been  followed  and  the  same  con- 
clusions reached. 

June,  1904. 


Chapter  I. 
SCOPE  AND  METHOD  OF  THE  INVESTIGATION. 

This  studj'  of  the  isthmian  canal  from  the  standpoint  of  its  use,  or  its  industrial  and  commer- 
cial value,  has  been  made  for  the  accomplishment  of  two  purposes.  One  object  was  the  presen- 
tation of  an  analytical  discussion  of  the  more  important  relations  of  the  proposed  waterway  to 
the  commerce  of  forcii;ii  nations  and  to  the  industries,  transportation  interests,  and  domestic  and 
foreif^n  trade  of  the  United  States.  The  other  purpose  was  to  compare  the  commercial  advan- 
tages of  the  Nicaragua  route  with  those  of  one  across  Panama,  all  other  routes  having  been  elim- 
inated from  consideration. 

There  are  two  sides  to  an  investigation  of  the  value  of  an  isthmian  canal,  one  industrial  and 
the  other  commercial.  A  careful  study  of  the  leading  industries  of  the  different  sections  of  the 
United  States  is  requisite  to  an  analysis  of  the  effects  which  the  canal  will  accomplish  or  to  a 
fruitful  discussion  of  the  commerce  that  will  use  the  waterway.  Commerce  is  but  the  auxiliary 
of  industry;  and  a  complete  discussion  of  the  economic  value  of  an  isthmian  canal  first  requires 
an  examination  of  the  leading  industries  of  the  United  States  and  other  important  countries,  and 
then  a  consideration  of  the  volume  of  business  which  those  industries  would  bring  to  the  canal. 

AVhile  this  report  docs  not  discuss  the  entire  field  as  thus  defined,  it  covers  those  parts  of  the 
subject  that  are  of  direct  importance  to  the  Amei-ican  people.  The  relation  of  the  canal  to  the 
industries  and  domestic  and  foreign  commerce  of  the  United  States  has  been  studied  with  care 
and  is  presented  with  considerable  detail,  nearly  half  of  this  discussion  being  devoted  to  the  sub- 
ject. A  separate  chapter  is  given  to  each  of  the  four  sections  of  the  United  States — the  southern, 
eastern,  central,  and  western — for  the  purpose  of  considering  the  manner  in  which  the  proposed 
canal  will  affect  their  industries  and  commercial  progress,  and  these  chapters  are  followed  by 
more  detailed  studies  of  the  coal  and  iron  and  steel  industries  and  the  shipbuilding  and  maritime 
interests,  with  special  reference  to  the  effects  which  the  new  interoceanic  route  will  have  upon 
each.  The  facts  bearing  upon  the  use  of  the  canal  by  sailing  vessels  are  analyzed  and  the  influ- 
ence which  the  new  waterway  will  have  upon  the  future  place  of  the  sailing  vessel  as  an  ocean 
carrier  is  considered.  The  eliect  of  the  canal  upon  the  traffic  of  American  railways  is  also  made 
the  subject  of  a  special  chapter. 

The  foreign  countries  whose  resources  and  trade  have  been  examined  are  those  of  the  Pacific, 
and  they  were  chosen  for  investigation  partly  because  it  was  believed  that  in  general  the  effect 
of  the  interoceanic  canal  upon  them  would  be  greater  than  upon  other  foreign  countries;  that 
their  commercial  relations  and  economic  conditions  would  be  most  benefited.  The  present  and 
prospective  importance  to  the  United  States  commercially,  and  politicallj^  also,  of  the  Pacific 
nations  was  another  reason  for  studying  carefully  the  relation  of  the  canal  to  the  progress  of 
those  countries.  The  industries  and  trade  of  the  countries  of  western  South  America  and  the 
manner  in  which  the  isthmian  canal  will  affect  their  progress  and  our  commercial  relations  with 
them  have  been  examined  with  special  care,  because  of  the  importance  of  this  extensive  section 
to  the  world's  commerce.  The  information  concerning  this  region  is  comparatively  meager  and 
the  significance  of  the  section  for  the  traffic  of  an  interoceanic  canal  and  the  commercial  progress 
of  the  United  States  is  frequently  underestiniiited.  The  industries  and  trade  of  Japan,  China, 
Australia,  the  Philippines,  Hawaii,  western  Mexico,  and  Centi-al  America,  and  the  effects  of  the 
isthmian  canal  upon  them  are  also  discussed. 

The  latter  jiart  of  this  discussion  relates  to  the  traffic  that  will  use  the  waterway.  The  effects 
which  the  isthmian  canal  will  have  upon  the  length  of  the  ocean  routes  connecting  the  United 
States  and  Europe  with  the  various  countries  of  the  Pacific  are  shown  by  eight  tables,  the  distances 
in  which  were  calculated  by  the  United  States  Hydrographic  Office. 

The  investigations  made  to  ascertain  the  present  and  prospective  available  tonnage  of  canal 
traffic  are  described  in  Chapters  XVllI  to  XXI,  inclusive.  Three  statistical  studies  are  discussed 
in  the  report,  and  after  describing  and  presenting  the  results  of  the  three  investigations  the  ton- 
nage figures  obtained  by  the  three  different  methods  of  inquiry  are  compared. 

After  having  determined  the  amount  of  canal  traffic  available  in  1899,  and  having  ascer- 
tained the  rate  of  increase  in  that  traffic  during  the  previous  decade,  estimates  are  made  concern- 
224 


PANAMA  CANAL  TKAFFIC   AND  TOLLS.  225 

ing-  the  probable  tonnage  that  will  be  available  for  the  canal  in  1909  and  1914.  The  growth  in 
the  traffic  passing  the  Suez  is  analyzed  and  an  estimate  is  made  regarding  the  increase  in  the  ton- 
nage of  the  isthmian  canal  during  the  first  decade  of  its  use. 

In  the  discussion  of  available  canal  tonnage  the  effect  of  tolls  upon  the  use  of  the  waterway 
by  the  traflac  between  the  different  sections  has  been  considered.  The  detailed  analysis  of  the 
relation  of  tolls  to  the  volume  of  trafKe  using  the  canal  was,  however,  reserved  for  a  special  chapter 
in  which  the  question  is  treated  at  some  length. 

Printed  material,  books,  pamphlets,  and  official  statistical  reports  published  by  the  United 
States  and  foreign  countries  have  been  examined,  and  an  extensive  correspondence  has  been  car- 
ried on  with  men  engaged  in  different  lines  of  business  so  as  to  secure  data  concerning  industrial 
and  commercial  facts  in  descriptive  rather  than  statistical  form.  Special  and  different  inquiries 
were  addressed  to  manufacturers,  importers,  and  exporters,  the  owners,  operators,  and  builders 
of  ships,  and  the  higher  officials  of  a  number  of  the  larger  railway  companies.  The  information 
received  from  individual  sources  is  frequently  referred  to,  but  for  obvious  reasons  the  personal 
or  corporate  name  of  the  correspondent  is  not  given.  The  information  regarding  the  industries 
and  trade  of  foreign  countries  was  in  part  supplied  by  special  reports  prepai-ed  for  the  commis- 
sion by  consuls  and  ministers  of  the  United  States  in  accordance  with  instructions  sent  them  by 
the  State  Department. 

In  order  to  supplement  the  information  obtained  from  the  sources  just  enumerated,  visits 
were  made  to  twenty-nine  large  commercial  and  industrial  cities.  The  places  visited  included 
the  larger  seaports  from  Portland,  Me.,  to  Galveston,  Tex.,  and  the  interior  industrial  cities  of 
Pittsburg,  Cleveland,  Cincinnati,  Detroit,  Indianapolis,  Milwaukee,  Chicago,  St.  Louis,  Memphis, 
Louisville,  Chattanooga,  Birmingham,  and  Atlanta.  In  each  of  these  cities  the  commercial 
organizations,  manufacturers,  and  others  interested  in  the  development  of  their  industries  assisted 
by  giving  information.  Special  reports  were  prepared  for  the  commission  by  the  commercial 
organizations  in  these  and  other  cities. 

From  the  nature  of  the  subject  investigated,  some  of  the  conclusions  regarding  the  industrial 
effects  of  the  canal  must  be  based  on  premises  concerning  which  differences  of  opinion  may 
exist.  Moreover,  the  presentation  of  the  industrial  data  and  a  discussion  of  them  can  not  be 
made  as  brief  and  concise  as  a  mathematical  demonstration.  These  limitations  apply  in  less  degree 
to  the  statistical  material  used  in  measuring  the  volume  of  traffic  available  for  the  use  of  the  canal. 
Xhe  conclusions  to  which  this  inquiry  has  led  are  here  given  without  claiming  that  they  are  abso- 
lutely' correct  in  every  particular,  but  they  are.  at  least,  as  close  approximations  to  the  truth  as 
could  be  attained  by  careful  and  impartial  research. 

Much  time  and  labor  have  been  given  to  the  preparation  of  maps  locating  the  resources  and 
industries  of  the  foreign  Pacific  countries  discussed  in  Chapters  XI  to  XVI  of  the  report.  Chap- 
ter XVII,  on  distances,  is  accompanied  bj'  commercial  maps  showing  the  location  and  length  of 
the  ocean  routes  by  present  lines  of  trade  and  by  those  that  would  pass  through  a  Nicaragua 
canal  and  a  Panama  canal. 

The  information  used  in  the  preparation  of  the  maps  accompanying  the  report  was  derived 
from  numerous  sources.  American  and  foreign  government  publications  have  been  consulted, 
and  geographical  literature  and  maps,  both  published  and  unpublished,  have  been  examined. 
The  United  States  consular  reports,  and  particularly  certain  special  reports  prepared  for  the 
Canal  Commission  by  the  consular  representatives  of  the  United  States  in  the  various  foi'eign 
countries,  were  a  vahiable  aid,  especiall}'  in  the  preparation  of  the  maps  of  Australia,  China, 
South  America,  and  Japan.  In  a  number  of  cases  the  text  of  these  special  reports  was 
accompanied  by  maps  prepared  in  accordance  with  suggestions  made  by  the  Commission.  The 
publications  of  the  Bureau  of  the  American  Republics  have  been  used  to  some  extent  in  preparing 
all  of  the  American  maps.  With  the  exception  of  two  countries,  this  is  also  true  of  Bianconi's 
commercial  charts.  The  Commission  has  secured  many  facts  by  an  extensive  correspondence; 
and  in  the  following  specific  I'eferences  to  the  authoi-ities  for  the  information  contained  in  the 
maps  no  attempt  is  made  to  give  all  the  sources  drawn  upon. 

The  map  of  Chile  contains  much  information  furnished  by  the  representatives  of  the  Chilean 
Government,  and  among  the  other  sources  of  the  data  used  special  mention  should  be  made  of 
the  work  of  the  United  States  Weather  Bureau  and  of  the  book  on  South  America  by  F.  G. 
Carpenter.  The  chart  of  northwestern  South  America  contains  man}'  data  contributed  by  the 
Bolivian  Government.  The  Geographic  Society  of  Lima  .sent,  in  manuscript,  a  carefully  pre- 
pared agricultural  map  of  Peru.  Some  facts  were  taken  from  Carpenter's  "•  South  America" 
and  from  "  Between  the  Andes  and  the  Ocean."  by  W.  E.  Curtis.  The  reports  of  the  Intercon- 
tinental Eailroad  surveys  were  of  value  in  the  preparation  of  this  map  and  also  of  that  of  Central 
America. 

The  map  of  Mexico  is  based  in  part  upon  the  economic  map  recently  published  by  the  Bureau 
of  the  American  Republics.     This  information  has  been  largely  supplemented  and  verified  by 


226  PANAMA  CANAIj  TRAFFIC  AKD  TOLLS. 

extensive  correspondence  with  Americans  engaged  in  business  in  Mexico.  The  following  author- 
ities, in  addition  to  those  more  generally  referred  to  above,  were  consulted:  French  and  Belgian 
consular  reports,  and  "•Geographical  Notes  on  Mexico,"  by  M.  Romero. 

The  map  of  New  Zealand  was  constructed  almost  entirely  from  infoi-mation  derived  from 
the  yearbook  and  the  other  excellent  reports  published  by  the  government  of  that  colony. 

For  the  Australian  map  the  information  came  chiefly  from  the  maps  accompanying  the  special 
consular  reports  and  from  the  detailed  industrial  descriptions  contained  in  the  official  publications 
of  the  various  States. 

The  map  of  China  draws  largely  upon  the  economic  maps  published  bj^  Beresford  in  '"The 
Breakup  of  China,"  and  Chisholm's  '' The  Resources  and  Means  of  Communication  of  China." 
The  data  used  were,  in  almost  every  case,  verified  by  the  excellent  economic  map  prepared  for 
this  commission  at  the  United  States  legation  in  Peking  or  by  reference  to  some  of  the  following 
works  on  China:  Reports  of  Imperial  Maritime  Customs:  "A  Journey  in  Western  Szechuen," 
by  Bishop:  "China  in  Transformation,"  by  Colquhoun;  "China  in  Decay,"  by  Krauss; 
"Through  Yangtse  Gorges,"  by  Little;  "The  Earth  and  Its  Inhabitants,"  by  Reclus. 

For  the  data  used  in  the  map  of  «Tapan  large  use  was  made  of  the  facts  in  Ransom's  ",Tapan 
in  Transition,"  which  were  verified  and  supplemented  by  reference  to  a  special  United  States 
consular  report  and  to  Japanese  Government  reports,  public  and  special. 

The  author  desires  to  express  his  appreciation  of  the  valuable  assistance  of  his  collaborator, 
Mr.  J.  Russell  Smith,  in  the  preparation  of  this  report  and  the  accompanying  maps.  Mr.  Smith 
was  clerk  to  the  Committee  on  the  Value  of  the  Canal  from  September,  1899,  to  August,  1901. 


Chapter  II. 


THE  ISTHMIAN  CANAX,  AND  THE  INBTTSTBIES  AND  TRADE  OF  THE  SOTTTHEBN  STATES 

The  products  of  the  South  find  their  present  foreign  market  mainly  in  Europe,  but  they  are 
desired  in  greater  or  less  degree  by  nearly  all  countries,  those  of  the  Pacific  Ocean  as  well  as 
those  of  the  Atlantic.  Because  of  the  geographical  position  of  the  South  its  exports  can  not 
readily  reach  the  markets  of  the  Pacific.  The  position  of  the  South  as  regards  Pacific  trade  is 
very  similar  to  that  of  the  west  coast  of  the  United  States  as  regards  its  commerce  with  Atlantic 
countries. 

As  compared  with  the  States  adjacent  to  the  North  Atlantic,  those  of  the  Gulf  are  consider- 
ably nearer  the  eastern  terminus  of  an  isthmian  canal.  In  the  following  table  the  distances  of 
Greytown  and  Colon  from  New  York  are  compared  with  their  distances  from  the  most  important 
Gulf  ports: 


Boston 

New  York . . . 
Philadelphia 

Norfolk 

Savannah  ... 

Tampa 

Pensacola  . . . 

Mobile 

New  Orleans 
Sabine  City.. 
Galveston  . . . 


Less  than 
distance 

from  New 
York  to 

Greytown. 


2,165 
1,981 
1, 9fiO 
1,779 
1,586 
1,215 
1,344 
1,371 
1,3«0 


Less  than 
distance 

from  New 
Y'ork  to 
Colon. 


It  will  be  seen  that  of  the  Gulf  ports  included  in  the  table  Tampa  is  nearest  to  Greytown 
and  Colon  and  that  the  ports  to  the  west  of  Tampa  are  successively  farther  from  the  two  isthmian 
ports,  Tampa  being  approximately  250  miles  closer  than  Galveston  is  to  the  Caribbean  termini 
of  the  two  canal  routes.  This  would  give  Tampa  some  advantage  over  the  other  Gulf  ports  in 
the  canal  trade  were  not  the  benefits  derivable  from  the  shorter  ocean  route  in  part,  if  not  quite, 
overcome  by  the  longer  railway  haul  to  that  city,  as  compared  with  Pensacola  and  other  Gulf 
ports,  from  many  of  the  sources  of  the  heaviest  volumes  of  traffic  originating  in  the  Southern 
States. 

The  proximity  to  the  canal  of  the  Gulf  States  and  cities,  as  compared  with  the  North  Atlantic 
section  of  the  country,  will  help  the  South  in  developing  a  direct  trade  thi-ough  the  canal  and  in 
drawing  a  larger  amount  of  the  export  and  import  trade  of  the  Mississippi  Valley  to  the  Gulf 
ports,  but  the  more  northerly  ports,  especially  New  York,  will  possess  the  advantage  of  having 
more  facilities  for  shipping  at  all  times  to  different  parts  of  the  world.  However,  as  the  com- 
merce of  the  South  with  Pacific  countries  develops,  because  of  the  opportunities  aflorded  by  the 
isthmian  canal  for  dispatching  freight  more  promptly  to  different  ports  of  the  world,  the  Southern 
gateways  will  enjoy  in  increasing  measure  the  benefit  of  their  relative  nearness  to  the  canal. 

THE    CANAL   AND   THE    COTTON    INDUSTRIES. 

The  raising  of  cotton  has  been  the  dominant  industry  of  the  South  for  nearly  a  hundred 
years,  and,  although  the  development  of  other  resources  is  giving  that  section  of  the  country  an 
increasingly  diversified  economic  life,  cotton  and  the  manufactures  based  upon  it  now  hold  and 
will  probably  retain  the  first  rank.  The  rapid  multiplication  of  cotton  mills  and  the  extensive 
manufacture  of  cotton-seed  products  have  latterly  strengthened  very  greatly  the  industrial  posi- 
tion of  the  cotton  crop. 

227 


228  PANAMA  CANAL  TRAJFFIC  AND   TOLLS. 

The  chief  Pacific  market  for  our  raw  cotton  is  Japan,  which  took  312,269  bales,  valued  at 
$12,712,610,  during  the  A^ear  ending  June  30, 1900,  the  gain  over  the  previous  years  having  been 
large.  The  sales  for  1S98  and  1899  averaged  about  200,000  bales  a  year.  The  consumption  of 
raw  cotton  in  the  mills  of  Japan  has  increased  with  extraordinary  rapidity.  In  1887  the  Jap- 
anese imports  of  raw  cotton  were  only  28, 400  bales,  by  1895  the  amount  had  increased  to  380,000 
bales,  and  in  1898  the  imports  were  660,000  bales.  In  1S9.5,  57.3  per  cent  of  these  cotton  imports 
into  Japan  were  obtained  in  China.  British  India  supplied  32.5  per  cent,  the  L'nited  States  8.4: 
per  cent,  and  other  countries  1.8  per  cent.  Thi-ee  years  later  the  imports  fi'omChina  dropped  to 
11.1  per  cent.  Those  from  British  India  rose  to  56.3  per  cent,  while  the  purchases  in  the  United 
States  comprised  30.8  per  cent,  the  amount  obtained  from  other  countries  remaining  at  1.8  per 
cent  It  is  fair  to  conclude  from  these  percentages  that  the  United  States  is  certain  to  find  a  large 
and  growing  market  for  raw  cotton  in  Japan. 

The  cotton  cloth  shipped  from  the  United  States  finds  it  way  to  numerous  Pacific  countries. 
China,  the  largest  buyer,  took  §8,783.131:  worth  in  1900,  her  purchasesfor  the  two  previous  years 
having  averaged  $7,500,000  annually.  Among  the  other  buyers  of  cotton  manufactures  are  the 
British  East  Indies,  which  took  §524.419  worth  in  1900,  and  Australia,  whose  purchases  amounted 
to  ^622,228.  Besides  this,  the  Hawaiian  Islands  took  §572,541  worth.  The  demand  of  these  and 
other  Pacific  countries  is  increasing,  and  our  sales  to  them  are  growing,  even  under  the  present 
adverse  conditions  to  be  overcome  in  reaching  their  markets. 

About  300,000  bales  of  the  cotton  exports  to  Japan  for  the  fiscal  year  1900  were  shipped 
during  the  first  eight  months  of  the  season.  The  distribution  of  these  300,000  bales  among  the 
three  shipping  routes  gave  the  Atlantic  ports.  New  York  and  Savannah,  44,000  bales;  the  Gulf 
ports.  New  Orleans,  Galveston,  and  Pensacola,  87,000,  and  the  Pacific  coast  ports,  which  were 
reached  by  rail,  169,000  bales.  Nearly  three-fifths  of  the  cotton  exported  to  Japan  that  year 
took  the  overland  route,  involving  a  railway  haul  of  2,000  miles  to  the  seaboard. 

The  cost  of  transporting  such  a  bulky  commodity  as  cotton  from  the  southern  section  of  the 
United  States  to  North  Pacific  countries  by  rail  to  our  west  coast,  and  thence  by  steamer,  or  from 
our  Atlantic  or  Gulf  seaboard  through  the  Suez  Canal  (sometimes  direct,  and  sometimes  via  Eng- 
land or  Germany),  are  so  high  as  greatly  to  restrict  the  trade.  This  fact  is  clearly  shown  in  letters 
received  from  firms  that  are  exporting  cotton  from  Texas.  New  Orleans,  Charleston,  and  else- 
where. The  difficulties  under  which  cotton  is  exported  to  oriental  markets  by  the  existing  routes 
can  be  illustrated  bj'  quoting  a  few  sentences  from  a  communication  received  from  a  representa- 
tive New  Orleans  firm: 

Two  direct  steamers  went  last  year  (in  1898)  from  tliis  port  to  Japanese  and  one  to  Chinese  ports  (Shanghai) 
around  the  Cape,  and  more  steamers  went  from  Galveston,  but  these  steamers  are  too  long  on  the  way.  First  of  all, 
they  have  to  stop  in  port  here  a  long  time  to  eoUect  all  the  lots  which  are  bound  for  Japan;  then  they  travel  two  or 
three  months,  whereas  payment  is  made  by  Japanese  and  Chinese  buyers  against  ninety  days  draft,  thereby  causing 
loss  of  interest.  To  avoid  this  loss  Japan  bought  last  year  (1898)  a  lot  of  cotton  in  Texas,  the  nearest  State  for  ship- 
ment via  San  Francisco,  but  the  Southern  Pacific  and  other  roads,  owing  to  the  inclement  weather,  etc. ,  could  not  handle 
the  big  quantity,  and  cotton  that  should  have^one  out  in  January  was  in  San  Francisco  by  June.  The  rate  to  Yoko- 
hama and' Kobe  (Hiogo)  is  80  cents  per  hundred  pounds  gross,  to  Shanghai  90  cents  per  hundred  pounds  gross; 
insurance  2  per  cent,  equal  to  one-eighth  cent  per  pound.  We  believe  China  and  Japan  will  consume  over  2,0CK),000 
American  cotton  (bales)  a  year  within  the  next  five  years."  A  good  deal  of  cotton  to  China  yet  comes  from  Ham- 
burg, Germany,  and  London,  England.  Any  shorter  and  safer  route  would  materially  increase  consumption  and  net 
more  to  the  producer  here,  as  big  freight  and  high  insurance  stand  in  the  way  of  trade. 

The  cotton  manufacturing  industry  of  the  South,  as  well  as  the  exporters  of  raw  cotton,  will 
be  served  by  the  canal.  With  5,000,000  spindles  already  in  operation,  and  the  erection  of  new 
mills  constantly  goin^  on,  the  growth  in  the  cotton  manufacturing  business  of  the  South  will  in 
the  future  be  limited  only  by  the  extent  of  the  market  that  can  profitably  be  reached.  The 
secretary  of  the  New  Orleans  Cotton  Exchange,  a  recognized  authority  on  the  cotton  industry, 
makes  the  following  statement  in  regard  to  the  growth  of  the  business  of  cotton  manufacturing 
in  the  United  States: 

The  .American  mills,  Xorth  and  South,  took,  in  the  year  1890,  2,346,000  bales,  and  of  this  the  census  of  that  year 
tells  us  2,259,000  bales  were  consumed.  In  1899  American  mills  consumed  3,.589,000,  or  1,330,000  bales  more.  Our 
mills  now  turn  out  more  goods  than  necessary  for  this  country  alone,  and  it  is  essential  to  their  prosperity  that  export 
facilities  be  had  that  will  enable  them  to  compete  successfully  with  iither  countries  in  the  great  markets  of  the  world, 
especially  those  of  the  Far  East.  To  the  Southern  States  particularly,  which  have  increased  their  consumption  from 
547,000  bales  in  1890  to  1,400,000  in  1899,  and  give  promise  of  still  greater  progress  in  the  near  future,  an  outlet 
through  an  isthmian  canal  is  of  the  first  importance. 

In  a  special  report  received  by  the  Commission  from  a  committee  of  business  men  in  Charles- 
ton, S.  C. .  the  opinion  is  expressed  that  "within  a  period  of  five  years  South  and  North  Carolina 
will  spin  more  cotton  than  they  grow.''  The  report  also  states  that  "the  cloth  they  manufacture 
is  almost  entirely  of  the  coarser  grades,  such  as  is  used  in  South  America  and  the  Orient.     The 

"  The  supply  of  cotton  has  not  been  equal  to  the  demand  since  1901,  and  the  consequent  high  price  has  restricted 
the  export  of  the  American  product  to  the  Orient. 


PANAMA  CANTAL  TRAJFFIC  AND  TOLLS.  229 

average  growth  of  the  two  States  is  1,450,000  bales.  They  spun  into  cloth  last  year  (1899) 
970,000  bales."  "  j         \        / 

Although,  as  the  foregoing  quotation  states,  the  chief  market  in  the  Orient  is  for  the 
coarser  grades  of  cottons,  there  seems  to  be  a  growing  demand  for  the  finer  qualities.  Several 
manufacturers  report  an  increasing  sale  of  the  finer  qualities  of  cloth,  and  these  statements 
would  indicate  that  the  eastern  market  is  in  the  future  to  be  one  where  a  variety  of  cotton 
manufactures  can  be  sold. 

At  present  the  cotton  goods  exported  from  this  country  to  the  East  go  out  largely  by  way 
of  New  York  and  through  the  Suez  Canal,  although  a  portion  of  the  trade  is  done  by  way  of 
transcontinental  railways. 

THE   CANAL   AND   THE    IRON   AND    STEEL   INDUSTRIES   OF   THE    SOUTH. 

The  most  notable  phase  of  the  recent  industrial  progress  of  the  South  has  been  the  growth 
of  the  iron  industry,  whose  chief  center  is  in  the  district  about  Birmingham,  in  the  north  central 
part  of  Alabama.  Two  members  of  the  Commission  visited  this  section,  and  Chattanootra  where 
a  large  variety  of  iron  and  steel  wares  are  manufactured,  and  were  strongly  impressed  'by  the 
extent  and  range  of  the  present  activities,  and  by  the  possibility  of  future  development. 

A  special  report  prepared  for  the  Commission  by  a  committee  appointed  by  the  Birmingham 
Commercial  Club  contains  the  following  statement: 

We  have  tlie  three  essential  materials  for  iron  making— coal,  ore,  and  limestone  within  exceptional  proximity 
within  rifle  range  of  the  furnaces;  and  in  consequence  of  these  geological  conditions  and  the  low  cost  of  individual 
materials,  iron  can  be  produced  in  this  district  cheaper  than  at  any  other  point  in  the  known  world.  / 

The  use  that  is  being  made  of  these  resources  of  coal  and  iron  is  concisely  stated  in  this 
report: 

Less  than  twenty-five  years  ago  the  first  coal  mine  was  opened.  In  1878  firea  were  lighted  in  its  first  furnace 
there  are  now  m  this  district  about  125  coal  mines,  with  a  capacity  of  about  20,000  tons  output  per  day  about  5  000 
coke  ovens,  with  a  capacity  of  about  4,500  tons  per  day;  two  steel  mills,  with  a  capacity  of  about  i  160  tons'ner 
day;  one  wire,  rod,  and  nail  mill,  with  a  capacity  of  500  tons  per  day.  '  ^ 

In  addition  to  these  there  are  about  200  more  small  manufacturing  concerns,  all  established 
within  the  last  twenty-five  years. 

The  Southern  States,  including  the  Virginias,  at  the  present  time  produce  nearly  one-fifth  of 
all  the  iron  ore  mined  in  the  United  States,  and  the  Alabama  and  Tennessee  mines  yield  nearly 
one-seventh  of  the  total.  The  pig-iron  manufacture  in  Alabama  in  the  year  endino-  June  '^0 
1900,  equaled  about  1,200,000  tons.  "      "i  "j, 

The  iron  industries  of  the  Birmingham  district  are  devoted  most  largely  to  the  manufacture 
ot  pig  iron.  This  pi^  iron  is  in  part  manufactured  into  cast-iron  pipe,  wire,  and  nails  and  the 
other  simpler  iron  and  steel  products.  ' 

The  iron  of  the  .Alabama  district  is  mostly  shipped  outside  of  the  State.  Durino-  the  last 
ten  years  about  20  per  cent  of  the  iron  has  been  used  in  local  establishments;  about  5  per  cent 
was  taken  by  Southern  States  other  than  Alabama,  1  per  cent  went  to  the  Pacific  coast  and  to 
Mexico,  19  per  cent  was  exported  to  foreign  countries  other  than  Mexico,  and  55  per  cent  of  the 
entire  output  was  marketed  north  of  the  Ohio  and  Potomac  rivers. 

For  the  last  three  years  about  one-fifth  of  the  iron  produced  in  the  Birmino-ham  district  has 
been  exported.  This  export  of  iron  began  as  late  as  1896,  and  during  the  years  1897  and  1898 
was  larger  than  it  has  since  been."  These  foreign  sales  of  iron  from  the  southern  furnaces  have 
been  facilitated  by  the  cheap  rates  obtainable  on  iron,  which  makes  desirable  freight  for  a  part 
ot  the  cargo  of  steamers  that  load  with  cotton. 

In  the  Southern  States,  outside  of  the  Birmingham  district,  notably  In  Chattanooga 
machinery  engines,  implements,  and  a  variety  of  iron  and  steel  articles  are  being  manufactured 
both  tor  the  domestic  and  foreign  trade.  Twenty-one  Chattanooga  firms  are  already  shippino-  to 
or  beyond  the  Pacific  coast  of  the  United  States,  and  most  of  these  are  engaged  in  some  form  of 
iron  and  steel  manufacture.  The  disadvantageous  conditions  under  which  they  are  conducting 
this  trade  at  the  present  time  are  illustrated  by  a  letter  received  from  the  head  of  one  of  the  lar^e 
establishments  of  that  city  engaged  in  the  manufacture  of  steel  plows.     He  .says: 

We  have  made  several  shipments  to  Australia  and  some  to  China  this  vear  (1900).  Some  of  these  we  had  to 
^r^Wl  V  n^f"  ^'"'^""sco  and  pay  a  freight  of  $1.50  per  hundredweight  (to  San  Francisco),  when  we  could  have 
reached  New  Orleans  and  put  them  on  a  vessel  for  24  cents. 

In  the  foregoing  discussion  of  the  iron  manufactures  of  the  South,  and  the  eflfect  which  the 
opening  of  a  canal  would  have  upon  them,  the  statements  made  are  intended  to  be  illustrative 

"Since  1900  the  high  price  of  iron  in  the  United  States  has  temporarily  checked  the  export  of  both  crude  and 
manufactured  iron,  but  when  prices  decline  the  Southern  States  will  again  find  the  exportation  of  iron  and  steel  as 
well  as  the  manufactures  of  them  highly  desirable.  i^  ui  nuu  d,iiu  sieei  as 

34998°— 12 16 


230  PAJSTAMA  CANAL  TRAFFIC   AND  TOLLS. 

rather  than  comprehensive.  Alabama  and  Tennessee  contain  the  largest  iron-producing  and 
manufacturing  regions  in  the  Southern  States,  but  Virginia  and  West  Virginia  have  come  to  be 
important  centers  Jfor  tliose  industries.  Their  industrial  and  commercial  interests,  however,  are 
more  closely  associated  with  the  North  Atlantic  than  with  the  South  Atlantic  and  the  Gulf,  and 
they  have  consequentl}'  not  been  considered  in  this  discussion. 

THE  CANAL  AND  THE  EXPORTATION  OF  SOUTHERN  LUMBER  AND  FOREST  PRODUCTS. 

In  a  special  study  of  the  lumber  trade  of  the  United  States  made  by  the  United  States  Bureau 
of  Statistics  and  published  in  the  Monthly  Summary  of  Commerce  and  Finance,  November,  1900, 
the  importance  and  general  location  of  the  timber  resources  of  the  Southern  States  are  described 
in  the  following  concise  manner: 

The  timbered  region  of  the  South  Atlantic  and  the  Gulf  slope  is,  commercially,  the  most  important  district  in  the 
United  States.  A  circle  whose  center  is  Chicago  and  whose  circumference  begins  with  Norfolk,  Va.,  and  sweeps 
Bouthwestward  to  the  lower  left-hand  corner  of  Arkansas  passes  through  the  heart  of  the  southern  pine  region  from 
beginning  to  end.  The  hard-wood  region  of  the  South  lies  inside  of  the  great  pine  belt  and  south  of  the  Ohio  River, 
embracing  the  mountainous  section  of  every  Southern  State  east  of  the  Mississippi,  together  with  the  whole  of  West 
Virginia,  Kentucky,  and  Tennessee.  The  Piedmont  and  mountain  sections  and  the  river  valleys  of  the  slopes  of  the 
Southern  Alleghenies  are  the  home  of  the  best  remaining  hard  woods  east  of  the  Mississippi,  if  not  the  best  in  the 
entire  country. 

The  standing  supply  of  timber  in  the  Southern  States  is  estimated  to  be  about  700,000,000,000 
feet  B.  M.,  about  30  per  cent  of  the  present  total  amount  within  the  United  States. 

The  exports  of  forest  products  from  the  United  States  have  reached  large  proportions  and 
are  increasing.  Our  total  foreign  sales  in  the  j^ear  ending  June  30,  1900,  of  wood  and  manu- 
factures of  wood,  not  including  other  forest  products,  were  $50,598,416,  and  were  double  the 
amount  sold  ten  years  ago.  This  increase  has  been  due  to  several  causes,  prominent  among  which 
are  the  restrictions  which  European  nations  are  placing  upon  the  cutting  of  their  timber.  Most 
of  the  lumber  shipped  abroad  is  cut  on  the  Pacific  coast  and  in  the  Southern  States.  The  latter 
furnish  more  than  half  of  the  lumber  exported  from  the  United  States,  and  somewhat  more  than 
seven-tenths  of  the  lumber  sent  abroad  from  the  South  goes  to  Europe.  One-fourth  of  the 
southern  exports  are  now  marketed  in  the  West  Indies,  Mexico,  Central  America,  and  eastern 
South  America. 

Although  the  lumber  exports  from  the  United  States  are  large,  they  are  estimated  to  be  not 
more  than  8  per  cent  of  the  total  amount  manufactured  in  the  country.  The  lumber  coasting 
trade  of  the  Atlantic  States  is  much  in  excess  of  the  foreign  shipments  from  that  region,  but  the 
opposite  is  true  of  the  Gulf  cities.  The  chief  lumber-shipping  ports  on  the  Gulf  are  Pensacola, 
Mobile,  Pearl  River,  Mississippi,  and  New  Orleans,  but  there  are  now  others  doing  a  large  busi- 
ness, the  trade  being  well  distributed.  The  stave  trade,  one  of  the  important  branches  of  the 
lumber  business,  is  centered  at  New  Orleans,  which  handles  more  than  half  of  all  the  staves 
exported  from  the  country. 

The  large  and  rapidly  growing  exportation  of  lumber  from  the  Southern  States,  not  only  to 
Mexico  and  the  West  Indies,  but  also  to  Brazil,  Uruguay,  and  Argentina,  indicates  that  large 
shipments  would  be  made  to  the  west  coast  of  South  and  Central  America  if  an  isthmian  canal 
were  in  existence.  Those  sections  are  obliged  to  import  a  large  part  of  their  lumber,  and  bj' 
way  of  a  canal  they  will  be  nearer  the  Gulf  cities  of  the  United  States  than  the  mouth  of  the  Rio 
de  la  Plata  now  is.  There  is  a  demand  on  the  west  coast  of  all  three  Americas  for  hard  wood, 
and  from  Southern  California  south  soft  woods  are  needed. 

The  hard-wood  lumber  is  now  being  shipped  from  the  Southern  States  to  the  Atlantic  South 
American  States  and  to  the  Pacific  coast  of  the  United  States.  The  cost  of  transportation  by  all 
water  from  Memphis  through  a  canal  to  Pacific  markets  would  be  so  low  as  to  make  possible  the 
development  of  a  more  important  trade.  The  industrial  progress  of  the  west  coast  of  all  the 
three  Americas  will  greatly  enlarge  the  demand  for  lumber.  This  larger  business  will  be  shared, 
both  by  the  regions  of  present  supply,  and  by  other  and  new  ones  now  debarred  from  trade 
because  of  their  inaccessibility  to  the  markets. 

Naval  stores — turpentine,  resin,  tar,  etc. — constitute  an  important  class  of  forest  products. 
These  commodities  have  always  been  produced  in  the  South,  because  that  is  the  home  of  the  long- 
leaf  pine,  from  which  they  are  obtained.  Besides  supplying  the  large  home  demand  for  naval 
stores,  the  Southern  States  exported  about  $12,500,(i(»O  worth  in  the  year  ending  June  30,  1900. 
The  previous  year  the  exports  were  valued  at  about  $10,000,000,  and  in  the  year  before  that  at 
about  19^000,000.  The  chief  foreign  markets  are  in  Great  Britain,  Germany,  and  other  European 
conntries,  but  there  is  a  growing  demand  for  the  commodities  in  all  Pacific  countries. 

Although  the  United  States  uses  a  vast  amount  of  paper  its  annual  exports  of  that  commodity 
now  amount  to  about  $6,250,000  in  value,  the  paper  being  made  mainly  from  wood  pulp,  which 
is  also  extensively  used  for  pails  and  other  utensils.     The  manufacture  of  pulp  and  paper  are 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


231 


industries  naturally  associated  with  the  use  of  the  forests  for  lumbering  purposes.  To  some 
extent  pulp  is  a  by-product  of  the  lumber  industry,  because  much  of  the  material  used  in  its 
manufacture  would  otherwise  be  wasted  in  cutting  off  the  forests.  At  the  present  time  the  pulp 
mills  are  mostly  located  in  the  northeastern  pai't  of  the  United  States,  partly  because  the  poplar 
and  spruce  timber  that  has  thus  far  been  used  mainly  in  pulp  manufacture  exits  most  abundantly 
in  that  section.  As  far  as  the  supply  of  available  timber  is  a  determining  factor,  the  pulp 
manufacturing  industry  can  be  developed  in  the  South  as  well  as  in  the  North.  Pulp  is  now 
manufactured  from  hemlock  as  well  as  spruce,  and  such  timbers  as  basswood,  cuciunber,  buckeye, 
maple,  birch,  and  beech  are  successfully  used  in  connection  with  poplar.  Cottonwood  is  well 
adapted  to  paper  making  and  is  largely  used  for  that  purpose,  being  nearly  as  good  as  poplar. 
Australia  is  a  very  large  buyer  of  American  paper  and  woodenware,  being  the  third  heaviest 
purchaser,  and  ranking  second  among  our  foreign  markets  for  printing  paper,  of  which  she  takes 
36  per  cent  of  all  our  exports.  In  the  Australian,  South  American,  and  other  Pacific  markets, 
our  trade  in  paper,  woodenware,  and  other  products  made  from  wood  could  be  increased  by 
facilities  for  cheaper  shipments. 


THE    CANAL   AND   THE    FERTILIZER    INDUSTRIES    OF    THE    SOUTHERN    STATES. 

The  South  already  uses  large  amounts  of  fertilizers  on  its  cotton  and  tobacco  plantations,  its 
grain  fields,  and  its  truck  farms,  and  the  future  demands  will  be  larger  than  the  present.  Much 
of  the  soil  of  the  South,  while  it  possesses  excellent  physical  characteristics,  is  not  strong  in  those 
chemical  properties  required  by  the  various  plants  that  are  grown.  Unless  carefully  cultivated 
and  kept  up  by  fertilizing,  the  soil  is  soon  exhausted;  but  when  care  is  taken  in  tilling  the  ground 
and  restoring  to  it  the  chemical  constituents  that  are  taken  by  the  various  ci'ops,  the  farms  are 
highly  and  continuously  productive.  Such  being  the  case,  the  South  must  inevitably  require  a 
constantly  increasing  amount  of  fertilizers  as  the  population  becomes  more  dense  and  the  change 
from  extensive  to  intensive  methods  of  argiculture  becomes  necessary. 

The  South  has  great  stores  of  phosphate  rock,  the  most  important  mineral  constituent  of 
commercial  fertilizers.  The  supply  of  this  mineral  is  the  source  of  a  large  foreign  trade  and  the 
basis  of  important  fertilizer  manufacturing  industries.  The  exports  of  crude  phosphate  amounted 
to  776,220  tons,  valued  at  $6,376,367,  in  the  year  ending  June  30,  190U.  The  States  in  which 
most  of  the  rock  is  mined  are  Florida,  South  Carolina,  and  Tennessee.  The  amounts  obtained 
from  each  State  and  the  amount  of  increase  in  the  production  is  shown  by  the  following  table. 
One  noticeable  fact  is  the  recent  prominence  which  Tennessee  has  acquired  in  the  phosphate  pro- 
duction.    The  figures  are  from  the  latest  published  report  of  the  United  States  Geological  Survey: 

Production  of  phosphate  rock,  1S94  nnd  1899,  and  value  where  mined. 


State. 

1894. 

1899. 

Tons. 

Value. 

Tons. 

Value. 

627,653 
480, 108 
19,188 

$1,666,813 

1,  745, 576 

67,158 

726,420 

0  357,090 

430,192 

2,000 

82,804,061 
1,078,099 

Total 

996,949 

3,479,547 

1,515,702 

<■  Including  440  tons  from  North  Carolina. 

The  opening  of  an  isthmian  canal  will  affect  the  fertilizer  industries  of  the  Southern  States 
in  two  ways:  (1)  In  the  manufacture  of  commercial  fertilizers  niti'ate  of  soda  is  used,  and  this 
at  present  has  to  come  from  Chile  around  Cape  Horn  or  through  the  Straits  of  Magellan. 
(2)  There  would  be  a  large  market  for  the  manufactured  product  in  California,  Hawaii,  and 
other  Pacific  countries  if  the  costs  of  reaching  those  markets  wei-e  lower.  Cheaper  ti'ansporta- 
tion  will  enable  the  manufacturers  of  fertilizers  in  South  Carolina,  Virginia,  and  probably  in 
Tennessee  to  supply  the  growing  demand  of  the  Australian  and  California  agriculturists.  With 
the  growth  of  population  and  the  increasing  value  of  land  in  those  countries,  present  methods 
of  agriculture  are  becoming  unprofitable,  and  a  change  must  be  made.  Farming  is  carried  on 
in  Japan  in  a  very  intensive  manner,  and  large  quantities  of  fertilizers  are  required.  In  the 
Hawaiian  Islands  there  is  already  a  considerable  demand  for  the  article,  and  portions  of  western 
South  America  will  in  time  import  large  quantities  of  the  commodity. 

Although  Florida  is  the  State  from  which  the  largest  quantity  of  crude  phosphate  rock  is 
obtained,  the  region  about  Charleston,  S.  C,  is  where  the  largest  amounts  of  commercial  fertil- 
izers are  manufactured.     A  special  report  prepared  for  the  Commission  by  the  Cotton  Exchange 


232 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


and  Chamber  of  Commerce  of  Charleston  contains  the  following  information  in  regard  to  the 
phosphate  industry  of  that  vicinity  and  the  benefit  which  would  be  conferred  by  the  opening  of 
a  canal  across  the  Isthmus: 

Inquiries  have  come  for  the  manufactured  fertilizers  from  the  Sandwicli  Islands,  and  efforts  are  now  being  made 
to  sell  the  manufactured  fertilizers  there  and  in  Japan.  In  connection  with  this  commodity,  it  may  be  stated  that 
Charleston  manufactures  more  commercial  fertilizers  than  any  place  in  the  world,  the  output  of  the  factories  here 
being  400,000  tons  per  annum.  With  cheap  rates  of  freight  that  the  isthmian  canal  would  give  large  quantities  of 
this  fertilizer  would  undoubtedly  move  to  different  countries  bordering  on  the  Pacific  Ocean.  The  only  commodity 
moving  from  Charleston  to  any  of  the  countries  touching  the  Pacific  Ocean  is  phosphate  rock,  to  the  Sandwich  Islands 
and  Japan.  About  5,000  tons,  approximately  three  steamer  loads,  of  this  commodity  go  from  here  annually  to  these 
countries.  The  value  of  this  commodity  here  is  $4  per  ton;  the  steamer  freight  has  averaged  about  $7.50  per  ton  to 
Japan.     The  high  freight  rate  is  a  barrier  to  a  large  movement  of  this  commodity  to  the  islands  named. 

The  chemical  company  which  controls  a  larger  fertilizer  manufacturing  business  than  any 
other  concern  in  Virginia  and  North  Carolina  stated  in  letters  received  from  them  in  May  and 
July,  1900,  that  they  had  imported  about  10,000  tons  of  nitrate  of  soda  during  the  preceding 
twelve  months.  They  also  say  that  they  could  use  a  great  deal  more  if  the  cost  of  the  nitrate 
were  reduced.  In  regard  to  the  effect  which  the  present  rates  of  freight  have  upon  their  west 
coast  business,  they  state  as  follows: 

There  is  now  a  demand  for  goods  we  produce,  viz,  superphosphates,  on  the  west  coast  of  this  country.  Our 
recent  efforts  to  secure  freights  on  large  bulk  cargoes  which  would  make  such  business  possible  from  Atlantic  coast 
ports  have  proved  unavailing.  Overland  freights  on  our  products  from  this  coast  to  the  Pacific  coast  are  entirely 
prohibitory. 

THE  CANAL  AND  COMMERCE  OF  THE  GULF  POETS. 

Several  forces  are  now  operating  to  increase  the  future  commercial  importance  of  the  Gulf 
ports,  and  in  order  to  appreciate  the  probable  scope  of  the  influence  of  the  proposed  canal  upon 
the  commerce,  handled  through  the  Gulf  gateways,  a  brief  analysis  of  those  forces  is  essential. 

The  Gulf  ports  have  capacity  for  handling  a  large  commerce.  Large  wharves  and  piers  have 
been,  and  are  being  erected  by  the  railway  companies,  which,  together  with  other  corporations, 
are  making  large  investments  for  the  purpose  of  increasing  the  trade  of  these  ports.  The  Plant 
System  at  Port  Tampa,  the  Louisville  and  Nashville  at  Pen.sacola,  the  Illinois  Central  and  Southern 
Pacific  at  New  Orleans,  the  Southern  Pacific  and  the  Atchison,  Topeka  and  Santa  Fe  at  Galveston, 
these  and  other  roads  are  expending  large  sums  for  the  development  of  terminal  facilities.  The 
Mobile  and  Ohio,  the  Loui.sville  and  Nashville,  and  other  companies  are  developing  the  port  of 
Mobile. 

The  Gulf  ports  have  the  commercial  advantage  of  being  nearer  than  the  Atlantic  seaboard  is 
to  the  larger  portion  of  the  Central  West,  the  upper  part  of  the  great  Mississippi  Valley.  These 
cities  are  convenient  gateways  for  a  greater  or  less  share  of  the  import  and  export  traffic  of  the 
entire  Mississippi  Vallej'.  The  relative  distances  by  rail  from  representative  Mississippi  Valley 
points  to  New  York  and  to  New  Orleans  are  shown  by  the  following  table: 


Chicago,  ni 

Dulutn.Minn 

Minneapolis,  Minn 

St.  Paul.  Minn 

Sioux  City,  Iowa. . . 

Omaha,  Nebr 

Dubuque,  Iowa 

St.  Louis,  Mo 


912 
1,390 
1,332 
1,321 
1,422 
1,402 
1,079 
1,058 


912 
1,337 
1,297 
1,279 
1,258 
1,070 
968 
695 


Saving  to 

New 
Orleans. 


Peoria,  111 

Cairo,  lil 

Evansville,  Ind . 
Louisville,  Ky  .. 
Nashville,  Tenn 
Denver,  Colo  . . . 
Kansas  City,  Mo 


Saving  to 

New 
Orleans. 


All  points  south  and  west  of  Lake  Superior,  northern  Michigan,  Lake  Michigan,  and  a  line 
drawn  from  Chicago  through  Indianapolis,  Frankfort,  Ky.,  and  on  to  Charleston  are  nearer  New 
Orleans  and  to  several  other  Gulf  ports  than  to  New  York.  While  distance  is  not  the  only  factor  in 
determining  the  direction  in  which  traffic  will  move,  it  is  one  of  the  factors,  and  the  proximity  of 
the  industrial  centers  of  the  Central  States  to  the  Gulf  cities  will  greatly  assist  those  ports  in  secur- 
ing a  large  share  of  the  South  American  and  Pacific  trade.  The  Gulf  ports  have  the  advantage  of 
being  able  to  bring  the  railway  car  and  the  steamer  side  by  side  at  terminals  where  freight  can  be 
very  economically  handled,  and  this  is  a  factor  that  will  materially  assist  their  commercial 
progress. 

The  following  tables  show  to  what  extent  the  ports  of  the  Atlantic  and  of  the  Gulf,  respec- 
tively, have  increased  the  tonnage  of  the  vessels  entering  and  clearing  in  foreign  trade  during  the 
past  ten  years.     The  first  table  compares  all  the  ports  of  the  Atlantic  with  all  the  ports  of  the 


PANAMA  CANAL  TKAFFIC  AND  TOLLS. 


233 


Gulf.  The  second  table  compares  the  increase  made  in  the  tonnage  of  entrances  and  clearances 
by  each  of  seven  of  the  North  Atlantic  ports  with  the  growth  accomplished  by  each  of  the  five 
leading  Gulf  ports: 

Tminage  of  resseU  entered  and  cleared  at  Atlantic  atid  Qulf  ports,  years  ended  June  30,  1890,  1895,  and  1900. 


Ports. 

1S90. 

1895. 

Gain  in  five 
years. 

1900. 

Gain  in  ten 
years. 

Gain  in  ten 
years. 

22,649,610 
4,035,256 

24,186,387 
4,679,247 

1,536,777 
643,991 

32,777,196 
8,414,432 

10,127,586 
4,380,176 

Per  cent. 
44.72 
108.55 

Qulf 

Tonnage  of  vessels  entered  and  cleared  at  the  seven  leading  Xorth  Atlantic  ports  and  at  the  five  leading  Gulf  ports,  years  ended 

June  SO,  1890,  1895,  and  1900. 


Port. 

1890. 

1895. 

Gain  in  five 
years. 

1900. 

Gain  in  ten 
years. 

Gain  in  ten 
years. 

North  Atlantic  ports: 

Portland 

260,796 

2,613,335 

12,283,740 

2,530,094 

1,969,501 

266. 138 

183.633 

250,312 
3,115,478 
13,188,085 
2,711,434 
1,608,267 
440.046 
208,992 

0 
502,143 
904,345 
181,340 

0 
173,  908 
25,459 

716,001 
4,145,187 
16, 020, 290 
3,736,615 
3,452,654 
1,095,727 

592,887 

456,205 
1,531,852 
3,736,560 
1,206,521 
1  483, 153 
829,589 
409,354 

Percent. 
174.54 
.58.62 
30.42 
47.69 
76.31 
311.71 
223.04 

New  York 

Philadelphia 

Norfolk 

Total 

20, 107, 137 

21,522,604 

1,415,467 

29,759,361 

9,662,224 

48.00 

Gulf  port,s: 

Port  Tampa 

9,080 

815,778 

254,012 

2,035,072 

343, 575 

174,466 
703,380 
532, 399 
1,997,769 
767, 629 

165,376 
278,386 
424,054 

208,595 
1,115,382 
1,054,471 
3,395,442 
1,538,300 

199,515 

299,604 

800,459 

1,360,370 

1,194,725 

2,197.30 
36.73 

315. 13 
66.85 

347.  73 

Mobile 

Galveston 

Total 

3,457,517 

4,175,643 

718, 126 

7,312,190 

3, 854, 673 

In  order  to  show  the  gains  above  referred  to,  in  the  grain  export  traffic  of  the  Gulf  cities,  a 
table,  taken  from  evidence  prepared  for  the  Interstate  Commerce  Commission  in  1899,  is  submitted. 

Percentage  of  the  total  wheat,  corn,  and  flour  exports  handled  at  the  Atlantic,  Gulf,  and  Pacific  ports,  respectivelii   durinq 
the  yeavs  1880,  1885,  1890,  1895,  and  1899. 


Atlantic  ports: 


Wheat. 

Com. 

Flour. 

Per  cent. 

Percent. 

Perceni. 

78.3 

83.7 

83.7 

66.1 

79.7 

77.8 

40.9 

75.3 

79.1 

53 

78.6 

80 

48.8 

76.2 

79.4 

2.5 

3.2 

0.9 

1.9 

12.8 

0.2 

4.5 

14.7 

0.4 

2.5 

9.8 

1.7 

29.4 

16.1 

3.9 

Pacific  ports: 

1880 

1885 

1890 

1895 

1899a 

Miscellaneous  ports: 

1880 

1885 

1890 

1895 

1899  a 


^  cent. 
13.9 
37.9 
60.5 


Per  cent. 
10.8 
14.4 
13.1 
10.4 
11.4 

4.6 


"Four  months,  January  1  to  April  30,  inclusive. 

The  Gulf  ports  are  making  substantial  commercial  progress.  Their  trade  is  growing  with 
the  industrial  progress  of  the  South,  and  they  are  handling  an  increasing  volume  of  business 
originating  in  the  central  section  of  the  United  States.  This  latter  source  of  the  commerce  of  the 
Gulf  cities  IS  usually  spoken  of  as  due  to  a  diversion  of  traffic  away  from  the  Atlantic  ports. 
This  statement,  however,  does  not  exactly  describe  what  has  occurred.  During  the  past  score  of 
years  there  has  been  an  enormous  expansion  of  the  industrial  activities  of  the  Central  West,  and 
at  the  same  time  the  railway  systems  leading  to  the  Gulf  have  increased  in  nimiberand  efficiency. 
Ihe  result  has  been  that  both  the  Atlantic  and  Gulf  lines  have  handled  an  ever-increasing  volume 
of  business.  The  business  of  the  Gulf  cities  shows  a  greater  percentage  increase,  but  the  abso- 
lute growth  in  the  traffic  to  and  from  the  Atlantic  has  been  much  larger  than  the  increase  in  the 
business  handled  through  the  Gulf  gateways. 

Many  commodities  are  now  moved  a  third  of  the  distance  across  the  continent  to  the  Eastern 
seaports  of  the  United  States  for  shipment  to  the  Orient.     At  the  present  time,  with  the  excep- 


234  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

tion  of  some  occasional  full  cargoes,  mainly  of  cotton,  the  trade  between  the  southern  sections 
of  the  United  States  and  the  Orient  is  carried  on  either  by  way  of  the  Pacific  ports  or  through 
the  Atlantic  gateways.  New  York  City  handles  by  far  the  larger  share  of  the  oriental  and  west 
coast  South  American  commerce  of  the  southern  and  central  sections  of  the  United  States.  If 
an  isthmian  canal  were  in  existence,  the  South  American  and  trans-Pacific  tiade  of  the  Southern 
States  would  be  largely  handled  by  the  Gulf  ports,  and  the  Central  States  would  have  the 
advantage  of  a  new  route,  which  they  would  doubtless  adopt  from  time  to  time  in  accordance 
with  the  conditions  of  competition  prevailing  among  i"ail  and  ocean  carriers. 

The  effect  of  the  canal  upon  the  traffic  of  the  Gulf  cities  will  consist  less  of  diverting  existing 
traffic  to  new  routes  than  of  bringing  about  trade  not  now  in  existence.  It  will  lead  to  a  larger 
commerce  between  the  southern  section  of  the  United  States  and  the  west  coast  of  South  America. 
This  trade  will  consist  largely  of  the  importation  of  nitrate  of  soda,  for  use  in  the  manufacture  of 
fertilizers  and  explosives,  and  of  the  exportation  of  lumber,  coal,  manufactures  of  iron,  steel, 
wood,  and  cotton  goods.  The  southern  section  of  the  United  States  has  practically  no  direct 
trade  at  the  present  time  with  the  west  coast  of  South  Amei'ica. 

The  opening  of  the  canal  would  lead  to  a  direct  trade  between  the  Gulf  ports  and  the  Orient — 
a  trade  consisting  of  the  exchange  of  cotton,  cotton  goods,  lumber,  and  manufactures  of  iron  and 
.steel,  for  the  tea,  silk,  mattings,  curios,  and  other  manufactui-es  charactei'istic  of  the  Orient. 

An  important  effect  of  the  canal  upon  the  trade  of  the  southern  section  will  result  from 
giving  that  region  a  more  direct  and  economical  connection  by  water  with  the  Pacific  States.  The 
coal,  steel,  cotton  goods,  cotton -seed  products,  and  fertilizers  of  the  Southern  States  will  find  a 
growing  market  west  of  the  Rocky  Mountains,  whence  the  South  will  secure  wool,  wines,  fruits, 
and  barley. 

In  their  efforts  to  increase  their  trade,  the  Gulf  cities  now  suffer  because  their  exports  are 
so  much  greater  than  their  imports.  But  few  goods  are  brought  into  the  country  by  way  of  the 
Gulf  cities.  One  effect  of  the  opening  of  the  canal  will  be  to  remove  this  handicap  partially, 
although  not  entirely.  The  Gulf  cities  will  be  ports  from  which  a  larger  portion  of  our  imports 
from  tropical  and  oriental  countries  will  be  distributed.  The  present  one-way  trade  of  the 
South,  with  its  consequent  relatively  high  costs  for  transportation,  will,  to  a  considerable  extent, 
give  way  to  a  reciprocal  and  more  economically  transported  commerce. 


Chapter  III. 

THE    CANAL   AND    THE    INDUSTRIES   AND    TRADE    OF   THE    NORTHEASTERN  SECTION  OF 

THE  UNITED  STATES. 

The  northeastern  section  of  the  United  States  does  more  manufacturing  and  has  more  foreign 
trade  than  any  other  part  of  the  country,  and,  although  the  central,  southern,  and  western 
divisions  of  the  United  States  are  rapidly  expanding  and  diversifying  their  industries,  there 
is  no  probability  that  the  States  and  seaports  of  the  Northeast  will  cease  to  rank  tirst  in  manufac- 
ture and  foreign  commerce.  Inasmuch  as  the  chief  commercial  reason  prompting  the  United 
States  to  construct  an  isthmian  canal  is  to  connect  our  two  seaboards  and  to  promote  the  foreign 
trade  of  the  countrj',  the  effects  of  the  proposed  waterway  upon  the  industrial  and  commercial 
activities  of  the  section  of  the  country  having  the  densest  population,  the  most  highly 
diversified  industries,  and  the  largest  trade  with  other  nations  constitute  an  inquiry  meriting 
careful  consideration. 

*  GEOGRAPHICAL   LIMITS   OF   THE    NORTHEASTERN    SECTION. 

The  geographical  limits  of  the  northeastern  section  are  clearly  defined  on  the  south  by  the 
mouth  of  the  James  River  and  by  the  railway  .systems  from  the  West  having  their  termini  at 
Norfolk  and  Newport  News.  South  of  those  cities  and  the  territory  served  by  the  Chesapeake 
and  Ohio  and  the  Norfolk  and  Western  railways  the  industrial  and  commercial  aililiations  are 
mainly  with  the  South  Atlantic  and  Gulf  States.  The  western  margin  of  the  northeastern  sec- 
tion of  the  United  State.s  can  not  be  so  easily  and  distinctly  marked,  because  the  industries  of  the 
East  shade  ofi'  into  those  of  the  Central  West  by  close  gradations.  The  latitude  being  the  same, 
the  two  regions  are  not  much  differentiated  by  diversities  of  climate,  and  their  common  stores  of 
coal  and  iron  give  them  the  basis  for  several  identical  industries.  The  industrial  and  commercial 
similarities  of  the  East  and  Central  West,  however,  have  very  marked  limitations.  East  of 
Pittsburg  the  economic  activities  are  dominantly  manufacturing  and  commercial,  while  westward 
from  that  city  agriculture  grows  increasingly  important,  and  before  the  State  of  Ohio  is  passed 
it  becomes  characteristic  of  most  parts  of  the  region. 

The  region  about  Pittsburg — that  is,  the  western  part  of  Penn.sylvania  and  eastern  Ohio — 
lies  on  the  borderland  between  the  Northeast  and  the  Central  West,  with  both  of  which  it  has 
close  business  relations.  The  iron  ore  used  in  this  region  comes  mainly  from  the  west;  its  coal 
supply  is  local.  Its  markets  are  both  east  and  west,  although  the  larger  volume  of  trade  is  with 
the  American  States  and  foreign  countries  adjacent  to  the  Atlantic.  Its  business  connections  are 
such  as  to  prevent  its  being  with  strict  propriety  included  with  either  the  Central  West  or  the 
East;  but,  if  placed  with  either,  it  will  best  be  grouped  with  the  northeastern  section,  which,  for 
the  purpose  of  this  discussion,  will  be  held  to  include  eastern  Ohio,  West  Virginia,  and  that  part 
of  the  United  States  east  of  that  region  and  north  of  the  mouth  of  the  James  River. 

INDUSTRIAL   CHARACTERISTICS. 

The  northeastern  section  of  the  United  States  has  become  much  like  western  Europe  indus- 
trialh^  and  commercially.  It  has  a  large  foreign  trade  in  manufactured  products,  made  in  part 
from  materials  ol)tained  domestically  and  to  some  extent  from  raw  and  partially  manufactured 
materials  inipoitcd  from  other  countries.  The  southern,  central,  and  far  western  sections  of  the 
United  States  are  drawn  upon  alike  by  Europe  and  the  eastern  part  of  the  United  States  for  the 
raw  materials  of  industry;  indeed,  those  .sections  of  our  country  contain  the  granaries,  mines, 
and  forests  that  supply  a  large  share  of  the  needs  of  the  manufacturing  nations  grouped  about 
the  North  Atlantic. 

Both  Europe  and  the  northeastern  section  of  the  United  States  are  obliged  to  secure  a  part 
of  their  supply  of  the  crude  materials  requii-ed  by  their  manufactures  from  the  tropical  and 
south-temperate  latitudes  of  the  Atlantic,  Pacific,  and  Indian  oceans.  The  nitrate  of  soda  from 
Chile,  the  lumber  and  grain  from  the  Pacific  slope  of  the  United  States,  the  Australian  wool, 
meats,  and  hides;  the  teas,  silks,  and  mattings  from  the  Orient;  the  sugar  and  spices,  rice,  jute, 

235 


236 


PANAMA  CANAL  TEAFFIC  AND   TOLLS. 


hemp,  vegetable  oils,  and  gums  from  the  British  and  Dutch  East  Indies  and  Oceania  are  exam- 
ples of  the  large  class  of  imports  derived  by  the  North  Atlantic  nations  from  the  lands  of  the 
Pacific  and  Indian  oceans.  These  raw  materials  and  oriental  wares  are  for  the  most  part  paid  for 
by  European  and  American  manufactures,  which  ai-e  finding  a  large  and  growing  market  in  the 
countries  of  the  western  part  of  the  American  continent  and  in  the  islands  and  continental 
countries  of  the  South  Pacific  and  Far  East. 

The  Suez  Canal  has  given  Europe  convenient  access  to  the  raw  materials  and  markets  of  the 
Indies  and  the  Orient,  but  her  ships  are  still  obliged  to  make  the  long  detour  around  Cape  Horn 
in  order  to  reach  the  western  ports  of  the  Americas.  The  eastern  half  of  the  United  States  is 
less  favorably  situated  than  Europe  is  for  trading  with  Pacific  countries.  The  distances  to 
Australasia,  Malaysia,  China,  and  Japan  are  shorter  from  Europe  than  from  our  Atlantic  coast. 
For  the  trade  with  the  west  coast  of  South  and  North  America,  also,  the  advantages  are  with 
Europe,  partly  because  sailing  vessels,  which  have  been  used  extensively  in  this  commerce,  can 
make  the  trip  from  Europe  more  quickly  than  from  the  United  States,  and  also  because  of  the 
cheaper  freight  rates  from  Europe  to  Pacific  America  than  from  the  eastern  United  States  to 
that  section,  the  lower  freight  charges  being  secured  by  the  European  shippers  on  account  of  the 
large  tonnage  of  vessels  sailing  from  Europe  in  ballast  or  partly  loaded. 

In  studying  the  relation  of  the  canal  to  the  southern  and  western  sections  of  the  United 
States,  the  most  typical  industrial  resources  and  activities  have  been  separatel}'  considered  and 
the  changes  that  the  proposed  waterway  will  produce  are  pointed  out  in  Chapters  II  and  V,  and 
that  plan  of  investigation  could  readily  be  followed  for  the  Southern  and  Western  States,  because 
of  the  relativel}'  small  number  of  large  industries  tj'pical  of  each  of  the  sections.  In  the  Northeast- 
ern States,  however,  where  manufacturing  has  reached  a  high  degree  of  development,  the  number 
of  large  industries  is  much  greater  than  in  the  South  and  West,  and,  in  order  to  avoid  making 
the  discussion  prolix,  it  is  necessary  to  group  the  varied  economic  activities  in  a  small  number 
of  large  classes. 

Most  of  the  economic  activities  of  the  Northeastern  States  are  directly  or  indirectly  asso- 
ciated with  four  groups  of  industries,  a  study  of  which  with  reference  to  the  effects  of  the  isth- 
mian canal  will  present  the  more  important,  though  by  no  means  all,  of  the  relations  of  the 
waterway  to  the  future  industrial  and  commercial  progress  of  that  section  of  the  United  States. 
These  four  groups  are  (1)  the  raining,  transportation,  and  exportation  of  coal;  (2)  the  manufacture 
of  iron  and  steel  and  of  the  machines  and  tools  made  of  steel;  (8)  the  shipbuilding  and  maritime 
interests;  (4)  the  various  classes  of  textile  manufactures.  If,  in  addition  to  considering  these 
four  groups  of  industries,  an  analysis  be  made  of  the  effects  which  an  isthmian  canal  would  have 
upon  (5)  the  commerce  or  the  import  and  export  business  of  the  North  Atlantic  seaports,  the 
chief  relations  of  the  proposed  waterway  to  the  economic  interests  of  the  Northeastern  States 
can  be  presented.  In  this  chapter  only  the  textile  industries  and  the  commerce  of  the  North 
Atlantic  cities  will  be  discussed.  The  effect  of  an  isthmian  canal  upon  the  coal-mining  industry 
of  the  country,  and  the  relation  of  our  coal  trade  to  the  commercial  use  of  that  waterway,  are 
subjects  of  such  importance  that  a  special  chapter.  No.  VI,  has  been  given  to  their  discussion. 
The  i-elation  of  the  canal  to  the  iron  and  steel  industries  of  the  United  States  is  discussed  in 
Chapter  VII.  The  effects  which  the  isthmian  canal  will  have  upon  American  shipbuilding  and 
maritime  interests  are  considered  in  Chapters  VIII  and  IX,  Chapter  VIII  dealing  with  the  sub- 
ject directly  and  exclusively  and  Chapter  IX  indirectly,  in  connection  with  an  analysis  of  the 
factors  affecting  the  use  of  the  canal  route  by  sailing  vessels. 

THE   CANAL   AND    THE    TEXTILE    INDUSTRIES    OF   THE    NORTHEASTERN    STATES. 

The  importance  which  the  textile  industries  of  the  United  States  are  assuming  is  .shown  by 
comparing  the  number  of  machines  used  in  the  industries  in  1900  with  those  employed  in  1890. 
The  following  table  is  taken  from  the  July,  1900,  issue  of  the  Textile  World: 

Companion  oj  textile  machinery  in  1900  with  1890. 


Cotton  spindles 21,057,983  14,188,103 

Cottonlooms 490,398  324,866 

Woolen  sets  of  cards 7, 806  ''■  ?4? 

Worsted  combs 1, 510 

Woolen  and  worsted  looms 80, 759  67, 817 

Knitting  machines 75,721  ,?§'^^? 

Silk  spinning  and  twisting  spindles 1, 426, 245  718, 360 

Silk  looms. :... 48,246  20,822 


19.0 
107.6 

98.5 
131.7 


PiVNAIVLA.  CANAL  TEAFFIC   AND  TOLLS.  237 

The  silk  industry  in  the  United  States  is  confined  almost  entirely  to  the  New  England  and 
Middle  Atlantic  States,  only  two  Southern  States  having  yet  established  the  industry,  and  much 
the  same  statement  may  be  made  regarding  the  woolen  industries,  althougli  the  mills  are  some- 
what more  widel}'  distributed.  There  are  now  in  the  United  States  nearly  half  as  many  cotton 
spindles  as  there  are  in  the  United  Kingdom,  the  countrj^  that  is  far  ahead  of  all  others  in  the 
textile  industries,  and  the  number  of  our  mills  is  rapidly  increasing.  The  cotton  maiuifacturing 
industr3'  is  increasing  in  both  the  northeastern  section  of  the  country  and  in  the  Southern  States, 
the  growth  being  more  rapid  in  the  latter  region.  In  1900,  according  to  the  Textile  World,  the 
Southern  States  were  operating  5,845,429  spindles  and  the  northern  mills  15,242,554.  Ten  years 
earlier  the  South  possessed  only  1,828,972  and  the  Northern  States  had  12,722,341.  During  the 
decade  the  number  of  spindles  in  the  South  increased  4,016,457,  or  219.6  per  cent.  The  gain  in 
the  number  of  spindles  in  the  Northern  States  was  2,520,213,  or  19.8  per  cent.  Massachusetts 
is  far  ahead  of  all  other  States  in  the  number  of  spindles,  it  having  8,012,331  in  the  year  1900. 
Khode  Island  ranked  second,  with  2,090,138;  South  Carolina  came  third,  with  1,794,657;  North 
Carolina  fourth,  with  1.499*540,  and  then  came  New  Hampshire,  Geoi'gia,  and  Kentucky. 

We  are  now  supplying  ourselves  with  nearly  all  of  the  various  grades  of  cotton  used  in  this 
country,  with  the  exception  of  certain  foreign-made  articles  of  a  higher  grade,  the  demand  for 
which  is  kept  up  by  custom,  and  have  developed  a  foreign  trade  which  has  amounted  to  about 
$24,000,000  annually  for  the  past  two  vears.  Our  silk  and  woolen  mills  are  still  unable  to  meet 
the  home  demand,  and  we  are  obliged  to  import  large  quantities  both  of  manufactured  goods  and 
raw  materials.  We  have  no  silk  exports,  and  the  sales  of  woolen  goods  amount  to  only 
$1,250,000  a  year.  Three-fourths  of  the  raw  silk  comes  from  Pacific  counti'ies,  and  we  are 
obliged  to  purchase  wool  in  China,  Oceania,  the  west  coast  of  South  America,  and  the  west  coast 
of  Mexico  and  the  United  States. 

The  exports  of  cotton  manufacture  from  the  United  States  are  sent  mainly  to  the  counti'ies 
of  the  Pacific  Ocean.  China  takes  about  half  of  our  exported  cotton  cloth,  and  the  sales  to  Aus- 
tralia, the  Hawaiian  Islands,  other  parts  of  Oceania,  and  numerous  Pacific  countries  are  slowly 
increasing.  One  significant  fact  concerning  our  foreign  trade  in  cotton  goods  is  the  small  market 
which  we  now  have  in  South  America.  The  cotton  goods  purchased  by  those  countries  now 
amounts  to  between  §70,000.000  and  §80,000,000  a  year.  Barely  6  per  cent  of  those  goods  come 
from  the  United  States.  It  seems  probable  that  the  United  States  will  be  able  in  the  future  to 
supply  a  large  share  of  the  demand  of  these  countries  for  cotton  goods.  The  opening  of  the 
canal  will  give  our  mills  ready  access  to  the  west  coast  of  the  continent,  and  make  much  more 
favorable  the  conditions  of  competition  for  the  trade  of  the  western  third  of  South  America,  a 
region  from  which  we  are  practically  debarred. 

In  the  manufacture  of  the  higher  grades  of  woolen  goods  it  is  necessary  to  import  consider- 
able quantities  of  Australian  wool.  At  the  present  time  most,  although  not  all,  of  this  wool 
comes  to  North  Atlantic  ports  of  the  United  States  by  waj'  of  London,  which  is  the  great  wool 
market  of  the  world.  The  advantage  of  importing  wool  from  London  is  that  the  American  buyer 
is  able  to  select  his  purchases  from  a  large  and  varied  stock.  The  disadvantage  is  that  the  Amer- 
ican exporter  has  to  pay  freight  charges  for  a  route  that  is  somewhat  roundabout  as  compared 
with  the  future  route  via  an  isthmian  canal,  and  has  to  bear  the  expenses  incurred  in  handling, 
storing,  and  selling  the  wool  in  London.  With  the  growth  of  our  wool  manufacturing  industries 
we  shall  be  obliged  to  import  increasing  quantities  of  Australian,  South  American,  Chinese,  and 
South  African  wools,  and  it  is  reasonable  to  expect  that  New  York  or  Boston  will  become  the 
wool  market  of  this  country.  Should  this  change  take  place,  it  will  be  brought  about  largely  by 
the  eft'ect  which  the  canal  will  have  upon  ocean  routes. 

The  textile  industries  of  the  United  States  have  developed  later  and  more  slowh'  than  many 
other  manufacturing  activities,  because  they  have  their  natural  home  in  thickly  populated  coun- 
tries, where  an  abundant  supply  of  skilled  and  inexpensive  labor  is  available.  The  populous 
States  of  our  country  now  possess  the  requisites  of  textile  manufacture,  and  the  cotton,  woolen, 
carpet,  silk,  and  weaving  industries  generally  are  expanding  rapidlj'.  Foreign  markets  will  in 
the  future  be  needed  for  the  products  of  our  spindles  and  looms,  as  well  as  for  the  output  of  our 
furnaces,  foundries,  and  other  manufacturing  establishments. 

THE    CANAL   AND   THE    COMMERCE    OF    THE    NORTH   ATLANTIC    PORTS. 

Our  European  commerce  at  present  includes  a  part  of  both  the  import  and  export  trade  of 
the  United  States  with  Pacific  countries.  The  outbound  rates  from  Great  Britain,  Germany,  and 
Belgium  being  very  low,  because  the  heavier  volume  of  their  commerce  is  inbound,  and  the 
facilities  for  shipping  directly  from  the  eastern  part  of  the  United  States  to  the  west  shore  of  the 
American  continents  and  to  other  sections  of  the  Pacific  being  limited,  our  trade  with  those 
regions  is  frequently  sent  to  Europe  and  the  goods  there  transshipped.     This  roundabout  route 


238  PANiUIA  CANAL  TRAFFIC'   AND   TOLLS. 

is  still  used,  although  the  reduction  in  the  rates  on  our  transcontinental  railways,  the  establish- 
ment of  the  American-Hawaiian  Steamship  Company's  line  between  New  York  and  San  Francisco, 
the  increased  facilities  and  connections  for  handling  freight  via  the  Panama  Eailroad,  and  the 
placing  of  more  vessels  on  the  route  between  New  York  and  Australia  have  made  the  American 
exporters  and  importers  less  dependent  than  they  formerly  were  on  securing  transportation  by 
way  of  some  European  ports  of  transshipment. 

After  the  American  canal  route  has  become  available  it  is  probable  that  little,  if  any,  of  our 
South  American  and  Pacific  foreign  commerce  will  be  handled  ))y  way  of  Europe.  Possibly  some 
shipments  to  the  east  coast  of  South  America,  south  of  Cape  St.  Roque,  will  be  sent  to  Europe 
and  taken  thence  by  the  lightly  laden  outl)ound  vessels.  This  will  depend  upon  the  rapiditv  with 
which  wo  develop  our  facilities,  during  the  next  ten  or  fifteen  years,  for  shipping  directly  from 
the  United  States  to  that  region.  Probal>ly  none  of  the  trade  between  our  eastern  seaboards  and 
the  west  coast  of  North,  Central,  and  South  America  will  take  the  indirect  route  after  the  Isthmus 
can  be  traversed  by  ocean  vessels. 

The  reciprocal  nature  of  the  trade  that  will  be  carried  on  thrcfligh  the  canal,  between  the 
eastern  half  of  the  United  States  and  the  western  part  of  South  America,  is  discussed  in  Chapter 
XI.  That  chapter,  and  the  others  dealing  with  the  relation  of  the  proposed  canal  to  the  trade 
and  industries  of  the  countries  of  the  Pacific,  should  be  read  l)oth  with  reference  to  our  own  trade 
and  with  regard  to  the  effect  which  the  canal  will  have  on  the  foreign  countries  discussed. 

The  trade  of  the  United  States  with  Japan  and  continental  Asia,  the  Indies,  and  Oceania  is 
now  carried  in  jwrt  through  the  Pacific  ports  of  the  United  States  and  British  Columbia  by  means 
of  the  railways  and  steamship  lines  having  termini  there;  but  the  larger  share  of  the  business  is 
shipped  by  way  of  the  Atlantic  seaboard.  Several  firms  run  steamers  via  the  Suez  Canal  between 
New  York  and  eastern  ports,  and  three  regular  lines  of  steamers  and  sailing  vessels  connect  New 
York  with  Australia  by  way  of  the  Good  Hope  route.  There  is  also  a  large  amount  of  traffic 
between  our  eastern  seaboard  and  oriental  countries  in  tramp  steamers  chartered  for  limited 
periods.  The  steamers  going  out  from  New  York  to  the  Indies,  China,  or  Japan  pass  through 
the  Suez  Canal  and  usually  return  by  the  same  route.  Chartered  steamers  going  out  from  New 
York  to  an  oriental  port  frequently  cross  the  Pacific  to  Chile  to  obtain  nitrate  cargoes  for  Europe. 
Steamers  returning  to  our  eastern  seaboard  from  Australia  more  frequently  come  via  Suez  and 
call  at  Europe,  while  the  sailing  vessels  cross  the  Pacific  Ocean  to  secure  a  west-coast  cargo  for 
New  York  or  some  other  Atlantic  port.  There  is  an  important  round-the-world  movement  of 
vessels  at  the  present  time,  the  extent  of  which  will  probably  be  increased  by  the  American  canal. 

After  the  isthmian  canal  is  completed,  the  shipments  between  our  Atlantic  or  Gulf  ports  and 
Japan,  the  Philippine  Islands,  Australia,  and  the  continent  of  Asia  north  of  Hongkong  will 
usually  make  use  of  the  American  canal  route,  although  some  ships  will  doubtless  go  and  come 
by  the  Suez  route,  for  the  purpose  of  doing  business  at  intermediate  ports.  A  large  part  of  the 
world's  commerce  will  be  done  by  tramp  steamers  whose  charters  will  take  them  in  whatever 
direction  and  along  whatever  route  the  movement  of  tonnage  is  strongest.  The  outbound  traffic 
of  the  United  States  to  most  sections  is  heavier  than  the  inbound;  the  opposite  is  true  of  Euro- 
pean commerce.  The  tramp  steamer  will,  whenever  possil)le,  move  with,  rather  than  counter 
to,  the  flow  of  ti-affic. 

One  certain  effect  of  the  isthmian  canal  upon  the  Atlantic  ports  of  the  United.  States  will  be 
to  cause  the  major  portion  of  their  commerce,  to  and  from  places  east  of  Singapore,  to  use  the 
American  canal  instead  of  the  present  easterly  routes.  Between  Singapoi'e  and  Shanghai,  and 
in  the  region  of  the  Philippines  and  the  Dutch  East  Indies,  there  will  be  a  region  whose  trade  with 
our  Atlantic  and  Gulf  seaboard  will  be  divided  between  the  American  and  Suez  Canal  routes. 
It  is  believed,  however,  for  reasons  stated  in  Chapters  XIX  and  XX,  that  the  conditions  of 
competition  will  be  more  favorable  for  the  American  than  for  the  Suez  route. 

Our  exports  to  Australia  and  New  Zealand  will  consist  mainly  of  general  manufactures,  and 
to  some  extent  of  heavy  iron  and  steel  products.  The  major  portion  of  the  general  manufactures 
will  be  sent  out  from  the  North  Atlantic  ports;  the  iron  and  steel  products  will  probably  be 
shipped  very  largely  from  the  Southern  States.  Most  of  the  wool,  hides,  gums,  etc.,  impoVted 
from  Australia  and  New  Zealand  will  enter  by  the  North  Atlantic  cities,  which  are  the  most 
convenient  gateways  to  the  section  of  the  country  where  manufacturing  is  most  fully  developed. 

After  the  canal  has  come  into  use  probably  but  a  small  part  of  the  trade  carried  on  between 
the  Southern  States  and  Pacific  markets  will  be  handled  through  North  Atlantic  ports;  soon  after 
the  opening  of  the  isthmian  waterway,  facilities  for  importing  and  exporting  directly  through 
Southern  ports  ma}^  be  expected  to  develop. 

The  general  effect  of  the  canal  upon  the  commerce  handled  bj'  the  North  Atlantic  ports  will 
l)e  to  enlarge  its  volume  and  variety.  The  Pacific  countries,  both  American  and  transoceanic, 
will  be  markets  for  increasing  amounts  of  American  manufactures  and  the  source  of  growing 
([uantities  of  the  raw  materials  required  by  the  industries  in  the  northeastern  part  of  the  United 


PANAIVIA  CANAL  TRAFFIC   ANTD  TOLLS.  239 

States.  The  subsequent  chapters  dealing- with  the  industries  and  trade  of  foreign  Pacific  coun- 
tries indicate  in  detail  the  character  of  the  commerce  that  will  be  promoted  b}'  the  construction 
of  the  canal.  The  establishment  of  a  new  hiohway  for  a  large  share  of  the  world's  commerce 
will  necessarily  change  the  present  routes  of  some  trade.  It  will  cause  the  ports  of  our  North 
Atlantic  seaboard  to  cease  to  handle  some  of  the  traffic  now  passing  their  gatewa3-s,  and  will 
likewise  bring  to  them  some  commerce  now  tributary  to  other  cities.  The  chief  effect  of  the 
canal  upon  the  commerce  of  the  ports  of  the  Northeastern  States  will  come  from  the  industrial 
changes  that  will  follow  upon  the  opening  of  the  interoceauic  waterway.  The  commerce  of  that 
section  must  progress  pari  passu  with  its  industrial  advance,  and  the  manufacturing  development 
of  the  Northeastern  States  during  the  coming  decades  promises  to  be  large  and  man3'-sided. 

Reports  prepared  with  especial  care  were  received  by  the  Commission  from  the  commercial 
organizations  in  Boston  and  Philadelphia.  A  bi'ief  statement  of  some  of  the  facts  presented  in 
those  reports  will  indicate  some  of  the  relations  which  will  exist  between  the  isthmian  canal  and 
the  trade  of  the  North  Atlantic  ports. 

Appended  to  the  report  from  Philadelphia,  which  was  prepared  under  the  joint  auspices  of 
the  Board  of  Trade  and  the  Maritime  Exchange,  were  two  tabular  statements,  one  of  which  gave 
the  quantit}'  and  value  of  the  principal  items  of  commerce  between  Philadelphia  and  Pacific 
markets.  The  other  table  compared  the  distances  for  sailing  vessels  and  full-power  steamers  by 
way  of  existing  routes  to  the  Pacific  markets  with  the  distances  bj'  way  of  a  Panama  canal  route 
and  bj'  way  of  a  waterway  across  Nicaragua.  Concerning  the  saving  in  freight  rates  that  au 
isthmian  canal  would  accomplish  for  the  commerce  of  Philadelphia  the  report  states: 

The  canal  would  provide  a  shorter  watej:  route  than  any  now  followed  between  Philadelphia  and  certain  impor- 
tant ports  of  the  Pacific,  notably  those  of  the  west  coast  of  North  and  South  America  and  the  Hawaiian  Islands; 
*  *  *  it  would  appear  that  its  existence  should  constitute  a  factor  of  significance  in  regulating  freight  rates,  at 
least  with  those  ports. 

The  report  does  not  attempt  to  state  in  precise  terms  the  saving  in  freight  rates  that  would 
be  accomplished  by  the  canal,  because  of  the  complexity  of  the  factors  entering  into  the  fixing 
of  rates,  and  because  of  the  difliculty  of  predicting  what  readjustments  may  take  place  in  ocean 
transportation  as  the  result  of  the  opening  of  a  new  highway  for  such  a  large  part  of  the  world's 
commerce,  but  it  illustrates  the  saving  which  the  new  route  would  effect  in  cost  of  ocean  trans- 
portation by  presenting  an  estimate  based  upon  the  daily  costs  of  operating  a  modern  freight 
steamer  of  0,000  tons  cargo  capacity.  The  calculation  led  to  the  conclusion  that  a  saving  of 
about  75  cents  per  cargo  ton  would  be  accomplished  by  using  the  canal  route  instead  of  existing 
water  routes  between  Philadelphia  and  San  Francisco,  Vancouver,  or  Acapulco.  In  this  calcula- 
tion a  toll  of  $1  per  net  register  vessel  ton  was  assumed.  The  report  closed  with  the  following 
statements  regarding  the  relation  of  the  canal  to  Philadelphia: 

The  prospect  of  the  inevitable  increase  of  our  country's  transoceanic  commerce  in  the  near  future  enhances  the 
importance  of  an  isthmian  canal  as  contributing  to  the  facilities  of  ocean  transportation,  but  we  would,  however, 
pomt  out  that  whether  the  canal  exists  or  not,  supply  and  demand  must,  in  the  last  resolution,  determine  the  volume 
of  our  port's  trade. 

The  canal  project,  while  opening  a  new  route,  would  in  reality  open  up  no  markets  that  are  not  already  accessible, 
but  it  would  seem  that  the  canal  would  be  a  favorable  factor  by  shortening  the  routes  to  some  important  points,  and 
thus  assist  our  merchants  to  enter  into  more  effective  competition  with  nations  of  Europe  which  are  now  enabled  to 
underbid  us  in  the  Far  East,  by  reason  of  the  more  economical  and  expeditious  transportation  which  their  merchants 
enjoy  by  way  of  the  Suez  Canal  route. 

In  the  statement  that  the  volume  of  Philadelphia's  trade  must,  in  the  last  analysis,  be  deter- 
mined by  supply  and  demand,  the  underlying  thought  evidently  is  that  the  opening  of  a  new 
ocean  route  must  be  considered  as  only  one  of  the  factors  determining  the  volume  of  any  com- 
munity's foreign  trade.  Supply  and  demand,  however,  it  must  be  remembered,  is  but  a  general 
statement  of  the  manner  in  which  production  and  consumption  are  kept  in  equilibrium.  There 
is  no  absolute  law  or  principle  explaining  the  final  adjustment  of  production  and  consumption 
embodied  in  the  general  term  "supply  and  demand."  The  intensity  of  demand  and  the  volume 
of  supply  are  both  subject  to  modification  by  any  factor  capable  of  altering  costs  or  prices,  or 
both.  The  effect  of  the  isthmian  canal  will  be  to  lower  the  cost  of  producing  many  things  at 
Philadelphia  and  elsewhere,  and  to  reduce  the  prices  at  which  those  products  can  be  sold  to  the 
consumers  in  Pacific  markets.  Stated  concretely,  the  manifold  manufacturing  industries  of 
Philadelphia  will  be  able,  after  the  canal  is  in  existence,  to  produce  more  cheaply  and  will  be 
able  to  put  their  commodities  on  Pacific  markets  at  lower  freight  costs.  The  persons  who 
buy  these  articles  in  those  markets  will  be  able  to  secure  commodities  more  cheaply,  and  the 
amount  the}'  consume  will  correspondingly  expand. 

The  cit}'  of  Boston  has  developed  a  large  commerce  with  Europe,  but  has  a  comparatively 
small  direct  maritime  trade  with  Pacific  countries.  A  small  share  of  its  Pacific  business,  import 
and  export,  is  carried  by  the  transcontinental  railways,  but  a  much  larger  part  is  handled  through 


240  PANAIVLA.  CANAL  TEAFFIC  AND   TOLLS. 

New  York  or  via  Liverpool.     The  report  of  the  special  committee  of  the  Boston  Chamber  of 
Commerce  states: 

We  have  from  Boston  practically  no  water-borne  commerce  with  the  west  coast  of  Central  and  South  America, 
the  west  coast  of  the  United  States  and  Canada,  Japan  and  China,  Australia  and  Oceania.  *  *  *  AVhile  we  send 
to  the  Orient  a  considerable  quantity  of  our  manufactured  wares,  and  receive  from  Asia  and  Australasia  a  large  quan- 
tity of  merchandise  there  produced,  the  trade  is  not  systematized.  Transportation  is  carried  through  a  variety  of 
channels,  but  only  a  small  portion  of  it  comes  to  or  goes  from  Boston  directly. 

Boston's  tea  imports,  according  to  the  report,  come  by  three  routes— by  way  of  the  trans- 
continental railroads,  or  through  Mew  York,  or  via  Loudon.  The  Australian  wool  comes  chiefly 
by  sailing  vessels  direct  from  Melbourne,  but  a  part  is  received  by  way  of  the  London  market. 
The  chinaware  from  Japan  and  China  "comes  chiefly  across  the  Pacific  and  by  rail  via  Vancouver 
and  San  Franci-sco." 

The  readier  access  to  the  raw  materials  and  markets  of  the  Pacific  countries  afi'orded  by  the 
isthmian  canal  will  promote  the  hianufacturing  and  commercial  progress  of  Kew  England  and  of 
the  territory  tributary  to  Boston.  This  will  give  Boston  a  larger  trade  and  increase  the  incen- 
tives for  the  operation  of  tramp  and  line  vessels  between  Boston  and  Pacific  ports  of  the  United 
States  and  foreign  countries.  A  large  increase  in  American  shipping  during  the  coming  fifteen 
years  seems  to  be  indicated  by  the  trend  of  ouv  economic  development;  and  this,  together  with 
the  larger  trade  tributary  to"^  Boston,  will  naturally  tend  to  cause  Boston  to  depend  less  upon 
other  ports.  What  is  true  of  Boston  in  this  regard  will  obtain  with  other  Atlantic  cities;  and 
the  general  effect  of  the  canal  upon  the  commerce  of  the  North  Atlantic  cities  will  be  to  increase 
its  total  volume  and  promote  its  distribution  among  the  several  ports. 

The  manner  in  which  the  isthmian  canal  will  afl'ect  the  industries  and  commerce  of  the 
northeastern  section  of  the  United  States  is  illustrated,  in  a  concrete  way,  by  a  letter  received 
from  a  firm  located  in  New  York,  engaged  in  the  manufacture  of  pumping  engines  and 
hydraulic  machinery  for  the  home  and  foreign  trade.  The  firm  has  a  large  tmde  with  several 
important  Pacific  countries. 

We  have  a  large  trade  on  the  western  coast  of  the  United  States,  and  this  would  undoubtedly  be  increased  if  we 
had  a  short  water  route,  so  that  we  might  ship  machinery  at  a  reasonable  freight  rate.  This  is  probably  of  more 
importance  in  the  case  of  first-class  freight,  as  the  risk  of  railroad  transportation  to  intricate  machinery  is  greater  than 
water  transportation,  and  therefore  the  freight  rates  are  unusually  high,  as  we  are  obliged  to  pay  from  81.25  to  $4  per 
100  pounds.  You  can  readily  see  the  advantage  of  a  canal  to  the  fruit  and  other  agricultural  industries  in  California 
if  they  are  able  to  purchase  machinery  for  irrigation  at  a  lower  price  than  they  are  now  obliged  to  pay  for  it. 

0"ur  business  in  the  Sandwich  Islands  has  been  very  large  in  the  past  few  years— at  the  rate  of  over  one-half 
million  dollars  per  year.  This  could  undoubtedly  be  increased,  and  at  the  same  time  the  sugar  and  other  industries 
there  fostered  if  we  were  not  handicapped  by  the'  long  railroad  haul  across  the  country. 

Our  business  in  Japan  and  China  has  not  been  large,  owing  to  the  fact  that  we  are  obliged  to  ship  by  all-water 
route  in  order  to  keep  the  prices  down  to  meet  European  competition.  Such  a  large  proportion  of  our  machinery  is 
sold  on  contract  where  time  is  so  much  an  object  that  we  are  badly  handicapped,  and  that  which  is  sent  out  for  stock 
requires  the  tying  up  of  considerable  capital  and  loss  of  interest,  owing  to  the  long  time  the  material  is  on  the  water 
in  transit. 

Our  trade  on  the  western  coast  of  South  America  is  growing,  but  very  slowly.  \\  e  believe  that  a  canal  would  be 
of  great  benefit  to  the  western  coast  of  South  America  in  building  up  their  industries,  by  enabling  people  to  purchase 
machinery,  etc.,  to  so  much  better  advantage,  and  that  this  country  would  receive  the  benefit  of  this,  a.s  a  good  line 
of  steamers,  from  here  direct  down  to  the  western  coast,  would  undoubtedly  tend  to  throw  most  of  the  business  to  this 
market. 

As  the  manufacturing  activities  of  the  northeastern  section  of  the  United  States  multiply, 
the  voliune  of  imported  raw  materials  brought  in  by  way  of  an  isthmian  canal  will  increase,  and 
the  stream  of  manufactured  articles  flowing  out  through  the  canal  to  the  market  of  our  west  coast 
and  of  foreign  Pacific  countries  will  grow  steadily  larger  with  every  lowering  of  the  costs  of 
production  and  transportation.  The  proposed  waterway  will  readjust  the  routes  of  shipment  and 
open  avenues  for  a  larger  and  more  varied  commerce. 


Chapter  IV. 

THE   CANAIi   AND   THE   CENTRAL,  WEST. 

The  term  Centi'al  West  is  generally  applied  to  the  five  States  north  of  the  Ohio  River  and 
the  seven  trans-Mississippi  States  of  Minnesota,  Iowa,  Missouri,  Kansas,  Nebraska,  and  the  two 
Dakotas.  These  twelve  States  have  a  combined  area  of  753,550  square  miles,  and  in  1900  had  a 
total  population  of  26,335,243 — that  is  to  say,  they  comprise  one-fourth  of  the  area  and  nearly 
one-third  of  the  population  of  the  United  States,  exclusive  of  Alaska  and  our  insular  possessions. 

The  eastern,  southern,  and  western  sections  of  the  United  States  are  situated  adjacent  to  or 
comparatively  near  the  seaboard,  and  the  imports  and  exports  received  or  dispatched  by  them 
through  an  isthmian  canal  will  need  to  be  hauled  a  relatively  short  distance  by  rail.  The  Central 
West,  on  the  contrary,  is  situated  from  500  to  1,500  miles  from  the  ocean,  and  the  trade  which  it 
may  have  by  way  of  a  canal  will,  on  an  average,  be  moved  nearly  1,000  miles  133'  railroad.  Will 
the  canal  affect  the  industries  and  Pacific  trade  of  this  interior  section  of  the  United  States  ? 

INDUSTRIAL    RESOURCES   OF   THE    CENTRAL    WEST. 

Taking  this  region  as  a  whole,  its  most  important  industrial  I'esources  are  those  connected 
with  agriculture.  The  States  in  the  western  part  of  this  section  of  our  country  are  eutirelj' 
agricultural,  but  Ohio  and  Indiana  are  extensively  engaged  in  manufacturing,  and  Michigan, 
Wisconsin,  and  Illinois  have  numerous  cities  in  which  large  manufacturing  activities  are  carried 
on.  In  most  of  these  States  there  are  abundant  supplies  of  the  raw  materials  of  industry.  Oliio 
and  Illinois  have  large  fields  of  coal  in  which  30,000,000  tons  of  bituminous  coal  are  annually 
mined;  and  Indiana,  Iowa,  Missouri,  and  Kansas  have  deposits  from  which  10,000,000  tons  are 
taken  yearly.  The  natural-gas  wells  of  Ohio  and  Indiana  are  a  valuable  source  of  fuel  for  parts  of 
those  States.  In  the  northern  section  of  the  Central  West  there  are  large  forests  of  excellent 
white  pine,  while  in  the  central  and  southern  portions  of  the  region  a  good  quantity  of  hard-wood 
timber  is  available.  Throughout  all  these  States  foods  are  cheap,  and  in  the  more  thickly 
populated  sections  there  is  a  large  supply  of  intelligent  labor. 

In  northern  Michigan,  Wisconsin,  and  Minnesota  over  seven-tenths  of  all  the  iron  ore  mined 
in  the  United  States  is  ol)tained,  the  rich  deposits  of  those  States  being  made  available  b}'  the 
cheap  transportation  on  the  Great  Lakes  to  the  coal  fields  of  Pennsylvania,  Ohio,  and  Illinois. 
The  low  costs  of  pig  iron  and  steel  in  Ohio,  Indiana,  Illinois,  and  other  States  of  the  Central  West 
unite  with  the  abundant  stores  of  cheap  fuel  and  good  lumber  to  establish  a  sure  foundation  for 
diversified  manufacturing  activities.  This  foundation  is  being  rapidly  built  upon,  and  several  of 
the  States  of  this  part  of  our  country  are  manufacturing  on  a  large  scale  both  for  the  extensive 
and  expanding  home  markets  and  for  our  trade  with  foreign  countries  in  all  parts  of  the  earth. 

Ohio  is  the  leading  State  of  the  Central  western  group  in  the  variety  and  amount  of  its  man- 
ufactures. Cleveland  and  Cincinnati,  the  largest  cities  of  the  State,  are  typical  industrial  centers, 
and  in  order  to  illustrate  the  relation  of  the  proposed  isthmian  canal  to  the  State  of  Ohio,  as  a 
whole,  a  special  discussion  is  given  below  to  the  industries  and  foi'eign  trade  of  those  cities,  and 
the  manner  in  which  they  will  be  aflected  b}'  the  new  water  route  to  and  from  the  Pacific.  Indian- 
apolis is  the  metropolis  and  most  important  industrial  center  of  Indiana,  and  the  same  is  true  of 
Chicago  as  regards  Illinois,  and  St.  Louis  with  reference  to  Missouri. 

By  studying  the  relation  of  the  canal  to  these  cities  and  a  few  others  of  minor  rank,  as  is 
done  in  the  following  pages,  it  is  believed  that  the  effects  of  the  interoceanic  waterwaj'  upon  the 
Central  West  generally  can  be  adequately  portrayed. 

In  the  tier  of  four  States  situated  farthest  west,  in  the  section  being  considered  in  this  chapter, 
the  export  business  consists  almost  entirely  of  grain  and  provisions,  but  from  all  the  other  eight 
Commonwealths  there  are  sent  out  to  foreign  markets,  in  addition  to  those  articles,  large  quan- 
tities of  agricultural  machinery,  wooden  ware,  vehicles,  tools  and  implements  of  all  kinds,  stoves, 
engines,  and  other  iron  and  steel  products  in  great  variety,  boots  and  shoes,  and  many  other 
articles  enumerated  in  detail  in  the  reports  received  from  commercial  organizations,  the  volume 
and  variety  of  the  export  trade  increasing  from  west  to  east,  from  the  Missouri  River  to  the  State 
of  Ohio. 


242  PAN.\]VIA  CAJSTAJL  TEAFFIC  AND  TOLLS. 

There  is  also  an  important  volume  of  imports  from  Pacific  foreign  countries  and  the  west 
coast  of  the  United  States  required  in  the  Central  West.  These  imports  consist  in  part  of  wool, 
nitrate  of  soda,  canned  fruits,  vegetables  and  salmon,  Japanese  and  Chinese  goods  in  large  variety, 
and  hemp,  jute,  gums,  and  waxes.  Those  from  foreign  Pacific  countries  come  in  part  by  way  of 
our  Pacific  ports,  but  most  largel}'  through  New  York. 

PRESENT    ROUTES   OF   SHIPMENT    FROM    CENTRAL    WEST. 

The  exports  from  the  Central  West  to  foreign  Pacific  countries  are  now  sent  by  various  routes, 
most  of  which  can  be  indicated  by  referring  to  the  shipments  from  Chicago,  the  largest  and  most 
centrally  located  city  of  the  region.  The  manufactures  of  that  city,  particularly  mining  and  other 
heavy  machinery,  are  sent  to  many  parts  of  the  world.  Heavy  freight  destined  for  Mexico  is 
frequently  sent  directly  by  rail,  but  shipments  are  often  made  via  New  York,  and  sometimes  b}' 
way  of  San  Francisco.  Assignments  for  the  east  coast  of  Central  America  may  go  either  by  New 
Orleans  or  New  York.  Most  of  those  for  the  west  coast  of  Central  America  and  all  those  for 
western  South  America  go  via  New  York  and  thence  either  by  the  Isthmus  of  Panama  or  around 
South  America.  Until  four  j'ears  ago  most  shipments  of  machinery  from  Chicago  to  Australasia, 
Malaysia,  and  the  Orient  are  reported  to  have  been  sent  to  some  European  port  and  there  trans- 
shipped, but  latterly  vessels  direct  from  New  York  have  handled  the  business.  The  shipments 
to  Hawaii  go  via  San  Francisco  or  some  other  Pacific  port,  as  also  do  those  that  must  reach  trans- 
Pacific  countries  with  a  minimum  of  delay,  but  when  time  permits  heavy  freight  is  sent  through 
New  York.  Further  information  regarding  the  routes  b}^  which  commodities  from  the  Central 
West  are  shipped  to  Pacific  markets  is  given  below,  where  a  communication  received  from  the 
chamber  of  commerce  of  Cleveland  is  referred  to. 

THE  CANAL  AND  THE  INDUSTRIES  OF  CLEVELAND. 

The  State  of  Ohio  is  situated  in  that  indetei'miuate  border  land  l^'ing  between  the  northeast- 
ern section  of  the  United  States,  where  manufacturing  and  commerce  are  the  dominant  activities, 
and  the  Central  AYest,  where  agriculture  still  heads  the  list  of  industries.  The  State  consequently 
now  ranks  well  up  in  the  list  of  manufacturing  Commonwealths,  and  its  future  development 
must  inevitably  increase  the  magnitude  and  variety  of  its  industries.  Something  concerning  the 
eflfects  which  the  isthmian  canal  will  have  on  the  economic  progress  of  Ohio  may  be  found  in  the 
subsequent  chapters  devoted  to  "The  canal  and  the  iron  and  steel  industries."  By  referring 
with  some  detail  in  this  connection  to  the  interest  of  Cleveland  and  Cincinnati  in  the  canal,  the 
relation  of  the  new  water  route  to  the  foreign  trade,  not  only  of  those  cities,  but  also  of  Ohio  and 
much  of  the  eastern  part  of  the  Central  West,  will  be  indicated. 

Cleveland,  which  is  now  the  metropolis  of  Ohio,  has  become,  by  virtue  of  its  location  on 
Lake  Erie,  and  at  a  point  where  the  coal  from  Pennsylvania  and  Ohio  and  the  iron  ore  from 
Lake  Superior  can  be  readily  and  economically  brought  together,  a  great  center  for  the  manu- 
facture of  iron  and  steel  products  and  the  home  of  a  large  variety  of  activities.  It  has  the 
advantages  of  cheap  fuel  and  low  transportation  cost  to  domestic  markets. 

The  Cliamber  of  Commerce  of  Cleveland  was  requested  to  address  a  circular  letter  to  the  mer- 
chants and  manufacturers  of  the  city,  asking  them  to  state  what  commodities  they  were  sending 
or  receiving  from  various  Pacific  countries,  by  what  routes  these  shipments  to  and  from  Cleve- 
land were  made,  and  to  indicate  how  they  would  be  affected  by  the  proposed  canal.  Letters  were 
sent  by  the  chamber  of  commerce  to  15.3  establishments  and  replies  were  received  from  58,  of 
which  38  manifested  a  direct  interest  in  the  canal  and  9  others  favored  the  opening  of  the  water- 
way because  it  would  inevitably  benefit  their  business.  Thirty  of  the  38  having  a  direct  interest 
in  the  opening  of  the  canal  were  manufacturers  and  8  were  importers  and  wholesalers.  Of  the 
30  manufacturers  who  replied  that  they  were  shipping  to  Pacific  countries,  6  thought  their  busi- 
ness was  such  that  the  canal  would  not  be  of  much  help  to  them,  and  1  person  thought  the  canal 
would  give  his  rivals  in  New  England  a  greater  advantage  than  they  now  possess. 

The  foregoing  analysis  of  the  replies  indicates,  first  of  all,  the  well-known  fact  that  the 
manufacturers  of  Cleveland — and  the  same  is  true  of  the  Central  West  and  most  of  the  United 
States  at  the  present  time — are  producing  mainly  for  the  home  market.  It  is  also  evident,  from 
the  letters,  that  several  Cleveland  firms  doing  a  foreign  business  have  not  yet  developed  a  trade 
with  Pacific  countries.  Some  report  that  they  are  debarred  from  this  trade  by  the  present  cost 
of  transportation.  A  few  Cleveland  firms,  whose  goods  reach  Pacific  markets,  are  unable  to  report 
the  amount  of  trade  in  those  markets,  because  their  goods  are  sold  to  New  York  or  London 
exporters.  Other  firms  having  no  foreign  Pacific  trade  report  that  they  are  doing  business  in 
our  west  coast  States,  and  they  especially  complain  of  the  present  high  costs  of  transportation 
by  rail. 

The  variety  of  commodities  shipped  from  Cleveland  to  the  various  countries  of  the  Pacific 
Ocean  is  surprisingly  large.     In  the  report  submitted  by  the  Cleveland  Chamber  of  Commerce 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  243 

the  articles  sent  to  each  section  of  the  Pacific  are  enumerated,  the  routes  by  which  the  commodities 
are  shipped  are  stated,  and  the  principal  imports  into  Cleveland  from  these  several  sections  are 
named.  This  part  of  the  report  is  so  informative  that  it  merits  quotation,  although  the  multitude 
of  details  in  the  statement  deprives  it  of  the  usual  fascination  of  literature. 

1.  Commodities  shipped  from  Cleveland  to  the  following  parts  of  the  world  during  1899; 

A.  West  coast  of  Central  and  South  America:  Carbons,  iron  roofing,  iron  houses,  wire,  barb  wire,  wire  nails, 
galvanized  smooth  wire,  annealed  wire,  wire  fencing,  telegraph  wires,  oil  stoves,  gas  stoves,  twist  drills,  machinists' 
tools,  tackle  blocks,  sewing  machines,  ironwork. 

B.  West  coast  of  the  United  States  and  Canada:  Sugar  machinery,  carbons,  iron  roofing,  iron  houses,  iron  maga- 
zines, pneumatic  cranes,  machine  tools,  bolts  and  nuts,  steel  springs,  barb  wire,  wire  nails,  galvanized  smooth  wire, 
annealed  wire,  wire  fencing,  telegraph  wires,  malleable  iron  castings,  oil  stoves,  gas  stoves,  cloaks  and  suits,  manu- 
factured wool  stock,  oil  and  grease,  paint  and  varnish,  wire  brushes  and  brooms,  foundry  supplies,  bristle  brushes 
and  brooms,  twist  drills  and  machinists'  tools,  steel  plate  and  castings,  hot-air  registers,  imported  and  domestic 
whiskies,  brandies,  gins,  imported  cordials,  wines,  tackle  blocks,  forgings,  turn-buckles  and  railroad  iron,  sewing 
machines,  ironwork.  .         ,     ,      . 

C.  Japan  and  China:  Nail  machinery,  carbons,  pneumatic  cranes,  jacks  and  pulleys,  machmes,  barb  wire,  wire 
nails,  galvanized  smooth  wire,  annealed  wire,  wire  fencing,  telegraph  wires,  oil  stoves,  gas  stoves,  twist  drills  and 
machinists'  tools,  automatic  or  self-filling  buckets,  rolling-mill  machinery,  sewing  machines,  ironwork. 

D.  Australia  and  Oceania:  Nail  machinery,  carbons,  bolts  and  nuts,  barb  wire,  wire  nails,  galvanized  smooth 
wire,  annealed  wire,  wire  fencing,  telegraph  wires,  malleable  iron  castings,  oil  stoves,  gas  stoves,  wire  brushes,  twist 
drills,  machinists'  tools,  tackle  blocks,  sewing  machines. 

E.  The  Indian  Ocean:  Barb  wire,  wire  nails,  galvanized  smooth  wire,  annealed  wire,  wire  fencing,  telegraph 
wires,  oil  stoves,  gas  stoves,  sewing  machines,  ironwork. 

2.  Eoutes  over  which  these  commodities  were  shipped  to  each  of  the  destinations  named: 

A.  West  coast  of  Central  and  South  America:  Via  New  York,  through  New  York  exporters;  via  Cape  Horn; 
via  Isthmus  of  Panama  (railroad). 

B.  West  coast  of  the  United  States  and  Canada:  Southern  Pacific  Railway  via  San  Francisco;  over  various 
railways  and  lakes;  via  Isthmus  of  Panama  (railroad).  .... 

C.  Japan  and  China:  Via  New  York;  via  Pacific  coast;  Suez  Canal;  from  Cleveland  to  San  Francisco  by  rail, 
to  Vladivostok  via  Nagasaki,  Japan. 

D.  Australia  and  Oceania:  New  York  exporters;  via  steamers  from  New  York  and  around  Cape  of  Good  Hope; 
by  rail  to  San  Francisco,  thence  by  steamer. 

E.  The  Indian  Ocean:  Via  New  York,  Suez  Canal. 

3.  Commodities  received  from  the  countries  and  sections  named: 

A.  West  coast  of  central  and  South  America:  Wool,  nitrate  of  soda. 

B.  West  coast  of  the  United  States  and  Canada:  Canned  goods,  dried  fruits,  wine,  brandy,  beans,  raisins, 
canned  fruits,  salmon,  nuts,  wool.  .  ,•    ,       . 

C.  Japan  and  China:  Straw  mattings,  mattings  and  rugs,  tea,  notions,  rattan  cane,  china  reeds,  split  bamboos. 

D.  Australia  and  Oceania:  Wool. 

E.  The  Indian  Ocean:  Burlaps  and  jute  bags. 

The  results  of  the  inquiry  concerning  Cleveland's  trade  in  Pacific  countries  may  be  sum- 
marized by  saying  that  this  great  manufacturing  center  has  begun  to  trade  with  practically  all 
sections  of  the  Pacific,  and  that  .some  firms  are  now  doing  a  business  of  considerable  importance. 
The  chamber  of  commerce  and  numerous  individuals  conferred  with  believe  that  Cleveland's 
interests  will  be  largely  promoted  by  an  increase  in  the  city's  trade  with  Pacific  countries.  The 
present  Pacific  trade  of  the  city  is  widely  distributed  and  comprises  a  wide  range  of  commodities. 

CINCINNATI   AND   THE    CANAL. 

The  industries  of  Cincinnati  differ  largely  from  those  of  Cleveland,  but  are  quite  as  typical 
of  the  manufacturing  activities  of  Ohio,  because  they  are  even  more  diversified.  The  articles 
produced  include  a  large  number  of  commodities  created  by  the  application  of  skilled  labor  to 
the  cruder  manufactures  of  steel,  lumber,  and  leather.  Besides  being  able  to  secure  those 
materials  advantageously,  Cincinnati  has  the  advantage  of  possessing  in  its  population  a  homo- 
geneous body  of  skilled  labor  well  trained  in  a  variety  of  arts.  The  Ohio  River  has  assured  the 
city  cheap  transportation  for  much  of  the  crude  and  raw  material  required,  and  has  aided  in  the 
economical  distribution  of  its  manufactures;  and  although  the  railroads  now  carry  the  greater 
volume  of  freight,  a  part  of  their  business  is  now  subject  to  a  water  competition. 

From  information  obtained  from  the  chamber  of  commerce,  it  appears  that  the  industries 
which  would  derive  most  benefit  from  the  canal  are  those  engaged  in  the  manufacture  of 
machinery  in  large  variety,  vehicles,  electric-railway  equipment,  saddlery  and  harness,  pianos, 
oflice  appliances,  pork  products,  liquors,  shoes,  and  furniture  made  from  native  and  tropical 
woods.  . 

There  is  at  present  a  trade  of  some  importance  between  Cincinnati  and  foreign  Pacific  coun- 
tries; but  the  business  with  the  west  coast  of  the  United  States  is  of  greater  consequence.  This 
Pacific  coast  trade  is  now  much  restricted  by  the  cost  of  rail  transportation.  Cincinnati  manu- 
facturers, moreover,  find  difficulty  in  competing  in  all  Pacific  markets  with  domestic  and  foreign 
producers  so  situated  that  shipments  can  be  made  by  water.  The  home  market  east  of  the  Rocky 
Mountains  can  be  reached  cheaply  from  Cincinnati,'  but  in  order  to  give  her  ready  access  to  the 
Pacitic  trade,  the  cheaper  transportation  is  reported  to  be  necessary. 


244  PANAJMA  CANAL  TRAFFIC   AND  TOLLS. 

THE    CANAL   AND    INDIANA. 

The  inquiries  sent  out  by  the  Indianapolis  Board  of  Trade  to  the  manufacturers  in  Indian- 
apolis and  other  parts  of  Indiana,  concerning  their  business  in  the  Pacitic  markets  of  the  United 
States  and  foreign  countries  and  the  effects  of  the  canal,  were  replied  to  bj'  150  fimis.  An  analysis 
of  the  letters  received  shows  that  63  of  the  150  firms  making  answer  are  now  doing  business  either 
on  the  west  coast  of  the  United  States  or  in  foreign  Pacific  countries;  87  of  the  150  firms  have 
as  yet  developed  no  trade  in  those  markets;  77  of  the  respondents  say  that  the  canal  would  either 
directly  or  indirectly  assist  them  in  the  development  of  the  Pacitic  trade;  73  of  the  firms  make 
no  suggestion  as  to  the  effects  of  the  canal.  It  is  probable  that  these  150  firms  maj'^  be  taken  as 
fairly  representative  of  the  large  manufacturing  concerns  of  Indiana,  and,  if  so,  somewhat  more 
than  two-fifths  of  the  Indiana  manufactories  now  have  trade  in  American  and  foreign  Pacific 
markets.  Somewhat  over  half  of  these  representative  Indiana  firms  foresee  that  the  canal  would 
be  of  direct  or  indirect  assistance  to  them. 

When  one  considers  the  present  costs  of  reaching  trans-Pacific  markets  from  such  a  section 
as  that  of  the  State  of  Indiana,  the  significance  of  the  foregoing  showing,  in  regard  to  the  pi'esent 
Pacific  trade  of  Indiana  firms,  becomes  manifest.  A  manufacturer  in  Indiana  stated  in  a  letter  to 
the  Commission  that  a  shipment  to  Australia  in  1899  was  sent  by  waj'  of  New  York  at  a  total 
freight  cost  of  $105.  The  freight  on  the  same  shipment  would  have  been  about  $150  to  San 
Francisco  or  Portland.  The  firm  stated  that  it  could  usually  reach  Australia  more  cheaply  than 
our  Pacific  coast. 

THE    CANAL   AND   ILLINOIS   AND    WISCONSIN. 

The  National  Business  League,  whose  offices  are  in  Chicago,  forwarded  to  the  Commission 
45  replies  to  the  circular  letter  of  inquiry  sent  to  the  members  of  the  league.  Twenty-one  of 
these  letters  were  from  Chicago  firms,  10  from  concerns  in  other  cities  of  Illinois,  8  were  from 
Wisconsin,  and  6  from  other  States;  34  of  the  respondents  reported  a  Pacific  trade,  and  11  no 
present  business  in  that  section  of  the  world;  35  believed  that  the  canal  would  assist  them,  7  said 
they  would  receive  no  aid,  2  gave  no  opinion,  and  1  believed  the  waterway  would  be  an  injury  to 
his  business. 

In  the  city  of  Chicago  a  great  variety  of  manufacturing  industries  is  carried  on,  and  ship- 
ments are  made  to  all  the  countries  of  the  Pacific.  Railway  materials  and  mining  and  agricultural 
machinery,  however,  are  especially  important,  mining  machinery  being  sent  to  all  parts  of  the 
world,  wherever  mining  operations  are  carried  on.  The  foreign  trade  of  one  Chicago  fii'm 
engaged  in  the  manufacture  of  mining  machinery  amounts  to  15,000  tons  annually.  The  agricul- 
tural machinery  manufactured  in  and  about  Chicago  is  now  shipped  to  the  west  coast  of  South 
America,  to  eastern  Siberia,  and  to  various  parts  of  Australasia.  The  Australasian  trade  of  one 
firm  in  1899  amounted  to  11,000  tons.  The  shipments  of  this  firm  and  presumably  of  others  of 
that  part  of  the  country  are  made  by  way  of  New  York,  except  on  rare  occasions,  when,  for  the 
purpose  of  economizing  time,  the  goods  are  routed  by  waj'  of  San  Francisco  or  Vancouver.  The 
rates  from  New  York  ai'e  usually  much  lower  than  those  by  way  of  the  Pacific  coast.  The  time 
taken  to  get  goods  from  Chicago  to  Australia  varies  from  sixty-five  to  eighty-five  days,  ten  days 
of  that  time  being  required  for  getting  the  goods  to  New  York  City.  The  average  time  from 
Chicago  to  the  Pacific  coast  is  eighteen  daj-s,  and  steamers  from  our  Pacific  coast  to  Australasia 
take  from  twenty-two  to  twenty-eight  days  for  the  passage.  The  canal  will  shorten  the  distance 
by  water  from  our  Atlantic  seaboard  to  Australasia  by  approximately  -1,000  nautical  miles  and 
the  distance  to  South  America  more  than  twice  that  number  of  miles. 

The  southern  and  central  parts  of  Wisconsin  are  developing  important  manufacturing  indus- 
tries and  a  Pacific  trade,  although  the  cost  of  reaching  Pacific  markets  is  a  heavy  burden.  A 
carriage  company,  for  instance,  situated  near  Racine,  Wis.,  reports  that  it  has  for  some  time 
past  exported  vehicles  to  the  western  coast  of  South  America,  Australia,  and  the  Orient,  the 
shipments  in  the  majority  of  cases  being  made  via  Atlantic  seaports,  "on  account  of  the  high  cost 
of  transportation  by  the  transcontinental  lines  from  here  to  the  Pacific  coast."  The  firm  states 
that  on  business  to  Pacific  coast  points  "we  have  to  pay  on  a  car  of  goods  valued  at  $1,500  $320 
for  transportation."  An  Oshkosh,  Wis.,  firm  engaged  in  the  manufacture  of  sash,  doors,  and 
blinds  ships  some  of  its  products  to  jobbers  in  England  who  export  the  commodities  to  various 
Pacific  markets.  A  Milwaukee  company  which  manufactures  engines,  pumping,  mining,  and 
other  heavj'  machinery,  and  has  branch  offices  in  many  parts  of  the  United  States  and  in  several 
foreign  countries,  reports  a  large  trade  with  the  Pacific  coast  of  the  United  States  and  foreigu 
Pacific  countries.  This  firm  states  that  "the  rates  from  the  European  ports  we  generally  find  to 
be  somewhat  lower  than  from  various  United  States  ports,  and  this  feature  makes  European 
competition  more  difficult  to  overcome." 


PANMIA  CANAL  TRAFFIC   AND  TOLLS.  2*45 

There  is  a  direct  Pacific  export  business  from  all  of  the  States  of  the  Middle  West  except 
those  forming  the  second  tier  of  States  west  of  the  Mississippi  River,  In  these  four  States — the 
two  Dakotas,  Nebraska,  and  Kansas — agricultural  and  food  products  comprise  nearlj'  all  the  com- 
modities sent  be3'ond  their  borders.  Should  the  canal  create  larger  home  and  foreign  markets 
for  those  products  it  would  work  to  the  indirect,  if  not  direct,  benefit  of  these  strictly  agricultural 
commonwealths. 

THE    CANAL   AND    ST.  LOUIS. 

It  remains  only  to  speak  of  the  State  of  Missouri.  Most  of  the  activities  of  fhe  people  of 
this  large  State  are  devoted  to  agriculture.  Its  hard- wood  forests,  however,  yield  an  export 
product  of  much  importance.  The  city  of  St.  Louis  is  a  prominent  manufacturing  center,  and 
is  one  of  the  largest  jobbing  and  distrib\iting  cities  of  the  United  States.  Situated  almost  at  the 
center  of  the  United  States,  on  the  largest  river  of  our  country,  and  being  the  center  of  railway 
systems  radiating  in  all  directions,  it  has  peculiar  advantages  both  for  manufacturing  and  for  dis- 
tributing articles  required  by  the  people  living  in  that  great  stretch  of  country  west  of  the  Mis- 
sissippi and  south  of  the  Missouri  River.  Our  rapidly  growing  trade  with  Mexico  is  also 
largely  controlled  by  St.  Louis. 

The  circular  letter  of  inquiry  sent  out  by  the  Merchants'  Exchange  of  St.  Louis  was  generally 
responded  to,  and  the  exchange  forwarded  to  the  Commission  6.5  letters.  Of  these  65  firms 
making  reply  32  stated  that  they  were  carrying  on  a  trade  in  the  western  part  of  the  United  , 
States  or  in  foreign  Pacific  countries,  and  33  answered  that  they  have  no  present  business  in 
those  sections;  48  of  the  65  firms  expressed  the  opinion  that  the  canal  would  assist  them  either 
in  developing  their  present  business  or  in  securing  a  trade  that  thej'  were  not  able  to  engage  in 
under  present  transportation  conditions.  Six  companies  reported  that  the  canal  would  not  be  of 
any  assistance  to  their  business.  Ten  gave  no  opinion  as  to  the  eS'ect  of  the  canal,  and  1  person 
expressed  the  belief  that  the  canal  would  enable  the  New  Yoi'k  exporters  to  injure  his  business. 
The  most  characteristic  business  of  the  city  is  its  jobbing  trade,  which  is  now  somewhat  facili- 
tated by  the  cheap  river  transportation.  The  St.  Louis  jobbers  of  heavy  commodities  will  in 
the  future  have  the  advantage  of  economical  water  transportation,  not  only  to  and  from  the  Gulf 
ports,  but  also  between  their  city  and  all  points  reached  by  the  canal  route. 

THE    EFFECT   OF  THE    CANAL    UPON    THE    TRANSPORTATION    FACILITIES   OF    THE    CENTRAL   WEST. 

The  large  and  varied  industrial  development  which  the  Central  West  has  enjoj^ed,  in  spite 
of  its  situation  near  the  center  of  a  great  continent,  has  been  due  to  its  excellent  transportation 
facilities.  Throughout  the  past  fift^^  years  the  Great  Lakes  have  given  the  Central  West  the 
opportunity  to  trade  with  the  eastern  part  of  the  United  States  under  peculiarly  favorable  con- 
ditions. The  commerce  on  the  Great  Lakes  is  growing  with  marvelous  rapidity,  and  at  the 
present  time  these  lakes  afford  the  cheapest  inland  transportation  to  be  found  in  any  part  of  the 
world.  The  Ohio,  the  Mississippi,  and  other  rivers  of  the  Central  West  have  in  the  past  been 
important  auxiliaries  to  the  commercial  development  of  that  section,  and  at  the  present  time 
the  Ohio  River  is  of  much  assistance  to  southern  Ohio  and  the  other  regions  adjacent  to  the 
stream.  With  the  decreasing  costs  of  railway  transportation,  the  impoi-tance  of  river  naviga- 
tion has  grown  less;  but  Ohio,  Indiana,  Missouri,  Iowa,  Minnesota,  and  Wisconsin  will  in  the 
future  derive  no  small  benefit  from  the  opportunities  which  they  will  possess  of  shipping  their 
commodities  by  river  to  Gulf  ports.  The  opening  of  the  isthmian  canal  will  unquestionably 
emphasize  the  commercial  importance  of  the  Gulf  cities,  and  will  strengthen  the  reasons  for 
improving  the  great  river  S3'stems  of  the  Central  West. 

The  existence  of  the  canal,  the  larger  commerce  at  Gulf  ports,  the  more  favorable  conditions 
for  river  navigation,  and  the  continued  growth  in  mileage  and  efficiency  of  the  railway  sj'stems 
leading  from  the  Central  West  to  the  Gulf,  will  tend  to  strengthen  the  power  of  the  Gulf  seaports 
to  share  with  the  cities,  situated  on  the  Atlantic,  the  trafiic  from  and  to  the  Middle  West.  While 
it  is  not  probable,  for  reasons  that  are  elaborated  in  a  subsequent  chapter,  that  so  large  a  share 
of  the  traffic  of  the  Central  West  will  be  handled  by  the  Gulf  routes  as  by  those  connecting  with 
the  Atlantic,  nearly  all  parts  of  the  Central  West  will  have  the  advantage  of  being  able  to  choose 
between  the  Gulf  and  Atlantic  routes,  and  this  power  of  choice  will  insure  to  them  that  compe- 
tition in  transportation  which  always  quickens  industrial  activity.  The  transportation  facilities 
of  the  Central  West  will  be  made  better  by  the  canal,  and  the  increased  trafiic  to  which  the  canal 
will  give  rise  will  lead  to  the  extension  and  improvement  of  the  agencies  for  rail  and  inland  water 
transportation.  Whatever  affects  the  transportation  facilities  of  the  Central  West  touches  its 
economic  life  at  the  very  center. 
34998°— 12 17 


Chapter  V. 
THE  CANAL  AND  THE  PACIFIC  COAST  STATES. 

With  the  exception  of  that  part  of  the  United  States  comprised  within  the  great  Cordilleran 
Plateau  or  Rock}'  Mountain  section  of  the  United  States,  the  Pacific  coast  States  have  been  and 
still  are  the  portion  of  our  countrj'  most  burdened  by  transportation  costs,  because  the  most 
highly  developed  manufacturing  sections  of  the  United  States  and  of  the  world  are  adjacent  to  the 
North  Atlantic  and  its  tributary  waters.  The  economies  that  have  been  effected  in  the  cost  of 
transportation  by  rail  have  so  reduced  freight  charges  as  to  make  possible  the  movement  of 
considerable  quantities  of  valuable  commodities  across  the  great  mountain  divide,  and  to  a  limited 
extent  biilky  freight,  such  as  cedar  shingles  and  finishing  lumber  toward  the  East,  and  raw  cotton 
and  heav3'  machinery  and  flour  toward  the  West,  will  now  bear  the  cost  of  transportation  by 
rail.  The  amount  of  rail  freight,  however,  now  being  carried  between  the  Pacific  and  the  States 
east  of  the  Cordilleras,  as  is  shown  in  another  part  of  this  report,  is  comparativelv  small,  so 
small,  indeed,  that  it  is  well  within  the  facts  to  sa}^  that  the  Pacific  section  of  our  country  is  able 
to  market  its  products  by  rail  east  of  the  Rock}'  Mountains  only  to  a  limited  extent.  The  rail- 
i-oads  have  not  j^et  satisfactorily  connected  the  Pacific  coast  States  with  their  largest  and  most 
natural  markets. 

Although  the  Pacific  coast  States  of  our  country  are  developing  an  oriental  trade  of  very 
satisfactory  proportions,  and  there  is  everj'  reason  to  believe  that  this  commerce  will  grow  in 
the  future,  nevertheless  the  trans-Pacific  trade  of  our  west  coast  will  pi'obably  be  small  in  com- 
parison with  the  commerce  of  that  section  with  the  markets  adjacent  to  the  North  Atlantic.  The 
western  part  of  the  United  States  is  now,  and  will  be  for  a  long  time  to  come,  devoted  very 
largeh'  to  the  production  of  food  products,  lumber,  and  the  basic  materials  of  industry.  The 
natural  markets  for  products  of  this  kind  arc  in  the  eastern  part  of  our  country  and  in  Europe. 

THE   CANAL   AND   CALIFORNIA. 

It.  would  be  impossible,  even  if  it  were  desirable,  to  consider  every  industry  of  California 
and  discuss  the  manner  in  which  it  would  be  affected  by  the  canal.  This  survey  being  intended 
to  be  suggestive  rather  than  exhaustive,  the  purpose  of  the  discussion  can  be  accomplished  better 
bj'  considering  only  the  grain,  lumber,  and  horticultural  and  mining  interests  of  the  State. 
These  are  the  industries  that  wiL  make  the  largest  use  of  the  canal,  and  the  industrial  effects 
which  that  watei'way  will  accomplish  will  be  fully  illustrated  by  a  consideration  of  these  charac- 
teristic economic  activities  of  the  State. 

The  two  cereals  that  California  produces  for  export  are  wheat  and  barley,  both  of  which  are 
now  produced  in  large  quantity.  The  average  annual  wheat  crop  of  California  for  the  past 
fifteen  j'ears  has  been  about  30,000,000  bushels.  The  annual  barley  crop  of  the  State  during 
recent  years  has  been  about  20,000,000  bushels. 

It  is  a  noticeable  fact  that  the  wheat  crop  of  California  has  not  increased  since  1893;  indeed 
the  recent  annual  productions  have  been  less  than  they  were  in  former  years.  The  reasons  for 
this  are  to  be  found  partly  in  the  low  prices  of  wheat  that  have  prevailed  much  of  the  time  during 
the  past  decade,  and  in  the  fact  that  the  transportation  charges  from  the  Pacific  coast  to  the 
principal  grain  markets  are  relatively  higher  than  from  most  of  the  other  wheat-growing  regions 
of  the  world.  While  the  wheat  production  has  declined,  the  amount  of  California  wheat  consumed 
at  home  and  in  the  neighboring  States  has  increased  with  the  growth  of  population,  and  the  con- 
sequence has  been  lighter  foreign  shipments  than  were  formerly  made.  Twenty  years  ago  wheat 
raising  was  the  most  attractive  industry  of  the  State,  but  since  then  the  crops  of  the  State  have 
become  diversified,  the  great  wheat  farms  are  being  divided  up,  and  single-crop  agriculture  on 
an  extensive  scale  has  to  some  extent  given  way  to  more  intensive  cultivation  of  smaller  farms 
devoted  to  the  production  of  several  crops. 

The  wheat  crop  of  California  is,  however,  a  large  and  valuable  one  at  the  present  time,  and 
will  probably  continue  to  be.  It  is  quite  possible  that  better  methods  of  culture,  the  use  of 
fertilizers,  and  the  ability  to  reach  Atlantic  markets  more  cheaph'  will  largely  increase  the  future 
wheat  production  of  the  State. 


PANAMA  CANAL  TEAFFIC   AND   TOLLS.  247 

California  barley  is  of  excellent  quality  and  is  being  exported  in  increasing  quantitj-  to  Eng- 
land, where  it  is  in  demand  for  brewing  purposes.  The  Iwirley  of  California  can  meet  the  compe- 
tition of  other  regions  of  production  more  easily  than'the  wheat  can,  and  cheaper  transpoi'tation 
charges  would  enable  the  State  to  increase  largelj'  the  sales  of  this  cereal  in  foreign  countries  and 
the  brewing  centers  in  the  central  and  eastern  parts  of  the  United  States. 

Corn  and  oats  are  not  grown  to  much  extent  in  California,  barley  being  used  instead  of  them 
for  feeding  stock.  Corn  and  oats  will  not  be  exported  from  California  after  the  canal  has  been 
opened,  but  a  small  quantity  of  them  may  be  imported  from  the  eastern  half  of  the  United  States. 

California  has  both  an  import  and  export  trade  in  lumber.  The  exports  by  sea  are  compar- 
atively light,  being  only  23,041,058  feet  in  1S!I9,  and  are  sent  mainly  to  Europe,  Australia, 
Mexico,  and  Central  America,  less  than  one-third  of  the  shipments  being  to  Europe  and  the 
eastern  United  States.  Although  the  annual  output  of  the  California  sawmills  is  about 
600,000,000  feet,  the  State  is  a  large  buyer  of  lumber  for  use  at  home  and  for  sale  in  the  moun- 
tain States  east  of  her.  About  200,000,000  feet  of  lumber — two-thirds  of  Washington's  maritime 
shipments — are  sent  annually  from  Puget  Sound  to  California. 

The  Sierras  of  California  are  well  wooded  with  pines,  spruce,  and  cedar,  and  the  redwood 
forests  extend  along  the  coast  from  Oregon  south  half  the  length  of  the  State.  The  redwood 
lumber  is  much  in  demand  in  Atlantic  countries,  and  in  the  future  will  probably  be  exported 
more  largely  than  at  present.  The  costs  of  shipping  lumber  by  the  sailing  vessels  which  now 
carry  the  traffic  have  averaged  about  65s.  ($15.85)  per  ton  from  the  Pacitic  coast  to  Europe  dur- 
ing the  past  ten  vears.  During  the  past  two  3'ears,  1899-1900,  the  charges  have  been  even 
higher,  on  account  of  the  scarcity  of  ships.  By  way  of  an  isthmian  canal  the  rates  for  large 
cargoes  would  not  need  to  be  more  than  half  the  average  charges  of  the  past  to  the  eastern 
United  States  and  to  European  ports. 

In  the  production  of  fruits,  nuts,  and  wine,  California  has  reached  a  position  of  eminence, 
and  the  extensive  horticultural -interests  of  this  and  the  other  Pacitic  coast  States  are  rapidly 
increasing  in  value  with  the  betterment  of  the  facilities  for  quick  transportation  in  refrigerator 
cars  to  the  Eastern  markets.  Formerly  nearly  all  the  excellent  fruit  of  the  West  was  dried  or 
canned  before  shipment,  but  now  a  large  part  of  it  is  marketed  as  green  fruit.  The  following 
figures  will  indicate  the  increasing  magnitude  of  the  business  of  selling  our  west  coast  fruit  in  the 
central  and  eastern  parts  of  the  United  Stiites  and  in  Europe.  In  1895,  •1,568  cars  of  green  decid- 
uous fruit  were  shipped  from  California  to  the  Eastern  cities,  and  in  1899,  9,694  cai'loads  were 
sent.  Efforts  arc  being  made  to  ship  the  Western  green  fruits  to  Europe,  42  carloads  having  been 
shipped  from  California  in  1896,  58  in  1897,  42  in  1898,  and  123  in  1899.  The  citrus-fruit  ship- 
ments average  15,000  cars  a  year  from  California  to  our  Eastern  markets.  Western  dried  and 
canned  fruits  find  a  ready  and  increasing  market  in  Europe.  There  were  8,692  carloads  of  dried 
fruit  shipped  out  of  California  in  1899,  about  20  per  cent  of  which  went  to  Europe.  The  growth 
in  the  sales  of  California  canned  fruit  in  Europe  has  been  especially  rapid.  In  1894  there  were 
85,817  cases  sent  to  England,  whereas  in  1899  over  half  a  million  cases  were  shipped. 

The  production  of  nuts,  raisins,  and  olives  has  reached  large  proportions.  California  raised 
14,000,000  pounds  of  almonds  in  1899 — one-third  the  total  large  consmnption  in  the  United  States. 
The  California  raisin  crop  is  from  70,000,000  to  100,000,000  pounds  a  year,  the  shipments  out  of 
the  State  being  3,600  carloads  in  1899.  California  olive  oil  is  now  being  sold  in  many  parts  of 
the  United  States. 

The  foregoing  figures  refer  particulardy  to  California,  but  the  development  they  indicate  is 
typical  of  all  the  Pacitic  States.  California  preceded  Oregon  and  Washington  in  the  develop- 
ment of  her  horticultural  industries,  but  these  two  States  have  latterly,  with  the  increase  in  their 
population  and  the  formation  of  better  railway  connections  with  the  East,  been  making  the  val- 
ley of  the  Columbia  River  and  its  tributaries  a  section  of  large  production  and  exportation  of 
fruit.  Although  fruit  is  a  commodity  with  a  relatively  high  value  for  its  bulk,  it  is  also  an 
article  the  consumption  of  which  is  most  I'eadilj'  stimulated  by  a  reduction  in  price.  The  pro- 
duction of  fruits  and  other  horticultural  products  is  capable  of  being  largely  increased  in  Cali- 
fornia and  the  other  Pacific  coast  States.  If  cheaper  transpoi-tation  can  be  secured  for  horticultural 
products  from  the  Pacific  coast  to  the  Eastern  United  States  and  Europe,  the  production  and  con- 
sumption of  fruits  will  expand.  The  figures  of  present  shipments  indicate  that  fair  progress  is 
being  made  in  reaching  our  Eastern  markets,  but  what  has  thus  far  been  accomplished  is  reported 
to  be  but  a  good  beginning. 

The  shipment  of  fruit  long  distances  will  always  be  made  to  a  large  extent  by  rail.  There 
is,  however,  no  doubt  about  the  ability  of  the  i.sthmian  canal  route  to  reduce  the  costs  of  ship- 
ping canned  and  dried  fruits  from  the  Pacific  coast  to  our  Eastern  States  and  Europe.  It  is  per- 
haps uncertain  whether  green  fruits  will  be  largely  shipped  by  the  canal  route  instead  of  by  rail. 
Most  varieties  of  green  fruit,  however,  can  be  successfully  shipped  by  water,  provided  proper 
arrangements  for  refrigeration  are  made,  and  provided  the  market  permits  of  regular  cargo  or 


248  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

large  berth  shipments.  Whether  the  water  route  will  be  used  for  the  shipment  of  green  fruits 
or  not  will  depend  upon  the  size  of  the  market  and  the  arrangements  for  prompt  distribution 
among  retail  buyers.  If  the  market  is  large  enough  and  well  organized,  shipments  will  probably 
be  made  in  vessels  especially  equipijed  for  the  service. 

The  production  and  shipment  of  California  wine  is  such  an  important  industry  that  it  calls 
for  special  discussion  in  considering  the  industrial  eflfects  which  the  isthmian  canal  will  produce. 
In  1897  no  less  than  Si, 000,000  gallons  of  wine  were  manufactured  in  California,  the  production 
having  doubled  in  a  decade.  Since  1897  the  amount  made  has  fallen  off,  because  of  the  ravages 
of  the  phylloxera,  but  the  decline  will  probably  be  only  temporary.  Varieties  of  resistant  stocks 
are  being  planted  that  are  not  subject  to  the  attack  of  the  insect,  and  there  is  every  reason  to 
suppose  that  the  amount  of  wine  produced  in  the  future  will  more  than  equal  the  figures  of  the 
past. 

Wine  is  mainly  shipped  in  casks,  and  is  a  kind  of  freight  adapted  equally  well  to  shipment 
by  rail  or  by  vessel,  and  at  the  present  time  shippers  are  making  use  of  both  means  of  transpor- 
tation. In  1899  California  shipped  by  sea  to  the  Eastern  States,  most  of  it  being  consigned  to 
the  port  of  New  York,  13,373  tons  of  wine.  To  Europe  570  tons  were  sent  direct.  Doubtless  a 
part  of  that  consignment  to  New  York  was  exported  to  Europe.  Shipments  to  Europe  and  the 
eastern  part  of  the  United  States  are  partly  direct  by  way  of  the  Panama  Railroad  and  in  part 
around  South  America.^  Some  of  the  585  tons  sent  to  Mexico  crossed  the  Isthmus.  During  this 
same  year  the  shipments  of  wine  by  rail  from  the  State  were  6i,520  tons,  the  amounts  sent  by 
rail  being  between  four  and  five  times  the  total  cargoes  sent  by  water  to  Atlantic  ports.  In 
addition  to  the  wine,  there  were  shipped  by  rail  3,599  tons  of  brandy  and  1,'475  tons  of  ''wine 
and  brandy  not  segregated."  The  brandy  shipments  by  water  amounted  to  316  tons.  Under  the 
present  conditions  of  expensive  transportation  a  fair  beginning  has  been  made  in  the  exportation 
of  California  wine  to  Atlantic  countries,  but  it  is  certain  that  the  wine  production  of  the  State 
can  be  lar^felj-  increased  with  the  more  favorable  conditions  of  competition  that  would  result  from 
lowering  the  expenses  of  reaching  markets. 

Among  the  other  industries  of  California  are  those  of  fishing,  mining,  and  grazing.  These 
industries  being  common  to  all  the  Pacific  coast  States,  they  will  be  considered  later  in  connection 
with  the  discussion  of  the  relation  of  the  canal  to  the  industries  of  Oregon  and  Washington. 

THE  CANAL  AND  THE  LUMBER  AND  GRAIN  INDUSTRIES  OF  OREGON  AND  WASHINGTON. 

The  manufacture  of  lumber,  the  raising  of  grain,  and  the  catching  and  packing  of  fish  are 
industries  of  prime  importance  in  both  Oregon  and  Washington.  The  growth  of  fruit,  particu- 
larly in  Oregon,  and  the  mining  of  coal  in  \\  ashington  are  industries  of  secondaiy  but  increasing 
rank.  The  commerce  of  this  section  of  the  United  States  centers  at  Portland  and  in  the  cities  on 
Puget  Sound. 

The  supply  of  timber  in  Oregon  and  Washington  is  so  abundant  and  of  such  excellent  quality 
that  the  amount  of  lumber  marketed  is  fixed  entirelj'  bj'  the  costs  of  transportation  to  the  distant 
markets  of  the  Orient,  and  particularly  of  the  north  Atlantic.  It  is  estimated  by  the  United 
States  Geological  Survey  that  the  forests  of  Washington  nowcontain  about  115,000,000,000  feet  of 
mei'chantable  lumber.  In  the  four  northwestern  counties  of  Oregon  there  are  said  to  be  1,800,000 
acres  of  standing  timber,  containing  between  fifty  and  sixty  billion  feet  of  lumber.  These  esti- 
mates may  not  be  accurate,  but  they  serve  to  show  the  magnitude  of  the  forest  resources  from 
which  W^ashington  and  Oregon  will  draw  traffic  for  an  isthmian  canal. 

Exports  of  lumber  from  the  Pacific  coast  of  the  United  States  and  British  Columbia  are  now 
made  to  the  countries  of  the  Pacific,  and  a  limited  amount  takes  the  long  voj-age  around  the  Horn. 
In  1899  our  three  Pacific  coast  States  shipped  13,354,000  feet  to  Europe,  5,149,000  feet  to 
Argentina,  and  15,944,000  feet  to  South  Africa. 

Although  western  Europe  and  the  eastern  coast  of  the  United  States  would  be  the  largest 
markets  for  Pacific  coast  lumber  if  the  costs  of  transportation  were  not  so  heavy,  the  present 
difficulty  of  shipping  lumber  from  the  Pacific  to  the  Atlantic  is  such  that  California  usually  sends 
to  Europe,  where  the  demand  for  redwood  would  be  large  if  the  price  were  lower,  but  one-fourth 
to  one  one-third  of  her  foreign  exports  of  lumber.  There  were  422,211,000  feet  of  lumber  shipped 
by  sea  from  Washington  in  1899.  California  usually  takes  60  per  cent  of  the  whole  amount  and 
Hawaii  one-sixth.  After  these  countries  comes  Australia,  then  South  Africa,  Asia,  Africa, 
Europe,  and  the  east  coast  of  the  United  States.  The  shipments  to  Europe  and  our  east  coast  are 
chiefly  spars  for  ships,  while  South  Africa  buys  bridge  material  and  other  choice  lumber.  The 
opening  of  an  isthmian  canal  would  reduce  by  about  50  per  cent  the  freight  costs  of  marketing 
our  west-coast  lumber  in  Atlantic  countries,  and  this  reduction  in  freight  expenses  would  add  a 
corresponding  amount  to  the  value  of  all  that  part  of  the  Pacific  coast  lumber  for  which  there  is  a 
demand  in  these  countries. 


PANAMA  C'AN.U.  TRAFFIC   AXD   TOLLS.  249 

All  three  of  our  Pacific  coast  States  are  heavy  exporters  of  wheat.  The  total  amount  pro- 
duced in  the  three  States  in  1899  was  77,404,000  bushels,  about  one-seventh  of  the  total  production 
of  the  United  States  for  that  year.  The  exports  to  Europe  were  17,396.71:^  l)usheis  of  wheat  and 
378,763  barrels  of  flour.  Counting  5^  bushels  of  wheat  for  1  barrel  of  flour,  the  total  exports 
equaled  19,479,908  bushels  of  wheat.  To  South  Africa  1,508,100  bushels  were  sent,  making  the 
total  shipments  to  the  Atlantic  nearly  21,000,000  bushels,  or  about  562,000  gross  tons.  Li  addi- 
tion to  this,  638,094  bushels,  or  about  17,100  gross  tons,  of  barley  were  shipped  from  California 
and  Oregon  to  Europe. 

The  wheat  exports  from  our  west  coast  during  the  fiscal  year  ending  June  30, 1899,  were 
unusually  light  on  account  of  the  shortage  in  the  crop.  During  the  previous  fiscal  j-ear  the  total 
exports  of  wheat  from  the  three  Pacific  States  to  Europe,  including  flour  expressed  in  bushels  of 
wheat,  were  34,869,921  bushels.  The  exports  of  wheat  and  flour  to  South  Africa  and  Brazil 
equaled  5,344,145  bushels.  Thus  in  1898  the  total  exports  of  wheat  from  our  Pacific  coast  to  the 
Atlantic  were  40,214,066  bushels,  or  1,077,207  gross  tons.  The  barley  exports  of  1898  were 
5,628,747  bushels  from  San  Francisco  and  250,792  bushels  from  San  Diego,  a  total  of  5,879,539 
bushels,  or  125,918  gross  tons.  The  total  gross  tonnage  of  these  wheat  and  barley  shipments  to 
the  Atlantic  during  the  year  ending  June  30,  1898,  were  1,203,125  gross  tons,  more  than  double 
the  tonnage  of  the  succeeding  year.  The  580,000  gross  tons  exported  in  1899  could  have  been 
carried  in  65  steamers  of  4,000  tons  net  register.  To  have  carried  the  1,203,125  gross  cargo  tons 
of  grain  shipped  around  the  Horn  in  1898  would  have  required  135  steamers  of  4,000  tons  net, 
and  that  vessel  tonnage,  540,000  tons  net  register,  more  nearly  represents  the  average  annual 
requirements  of  the  Pacific  coast  grain  shippers  than  does  the  tonnage  of  1899. 

At  the  present  time  this  grain  goes  around  the  Horn  in  sailing  vessels  averaging  about  1,800 
tons  i-egister.  After  the  isthmain  canal  has  been  opened  the  ship  used  will  doubtless  be  a  steamer 
of  not  less  than  double,  and  probably  three  or  four  times,  the  size  of  the  sailing  vessels  now 
employed.  The  freight  rates  now  vary  from  §5.50  to  over  $10  per  long  ton — from  15  to  26  cents 
a  bushel — depending  upon  the  available  supply  of  ships.  A  steamer  of  large  dimensions  could 
doubtless  carry  the  grain  by  way  of  a  canal  from  our  west  coast  to  Europe  for  10  cents  a  bushel — 
$3.73  a  gross  cargo  ton — and  paj'  from  that  freight  receipt  $1  per  register  ton — less  than  50  cents 
per  cargo  ton — for  canal  tolls. 

THE    WEST-COAST    FISHERIES. 

The  fisheries  of  the  Pacific  coast  constitute  an  important  industry  that  gives  rise  to  the 
exportation  of  a  large  volume  of  valuable  freight.  The  salmon  jmck  of  Alaska,  British  Columbia, 
and  our  west  coast  in  1899  amounted  to  3,138,040  cases,  each  containing  48  1-pound  cans.  Three- 
fifths  of  this  was  packed  in  Alaska  and  British  Columbia,  and  two-fifths  in  Washington  and 
Oregon.  A  package  of  48  pounds  of  salmon  weighs  70  pounds,  and  3,138,040  cases  would  occupv 
80,000  measurement  tons  of  40  cubic  feet  each.  It  would  require  about  twenty  fully  loaded 
vessels  of  2,000  net  register  tons  each  to  carry  the  freight. 

The  shipments  of  salmon  to  the  Eastern  part  of  the  United  States  and  to  Europe  are  heavy, 
both  from  British  Columbia  and  from  San  Francisco.  From  San  Francisco  the  shipments  by  sea  in 
1899  to  our  Eastern  States  were  261,683  cases,  valued  at  $1,157,608.  The  total  ocean  shipments 
from  our  Pacific  ports  (mainly  from  San  Francisco)  to  foreign  countries  east  of  the  Horn  in  1899 
were  21,014,989  pounds,  or  437,801  cases,  which  would  amount  to  11,608  measurement  tons  of  40 
cubic  feet.  At  the  present  time  these  salmon  exports  by  sea  are  shipped  in  English  sailing  ves- 
sels around  the  Horn,  and  the  business  is  handled  mostl}-  by  English  houses. 

In  addition  to  the  ocean  shipments  of  salmon,  there  are  fresh  salmon,  halibut,  and  other  kinds 
of  fish  shipped  east  by  rail.  The  American  consul  at  Vancouver  reports  that  one  company 
"takes  in  the  open  sea  to  the  north  of  Vancouver  from  a  million  to  a  million  and  a  half  pounds 
of  halibut  each  year.  The  halibut  steamers  bring  the  fish  to  Vancouver,  where  they  are  packed 
in  ice  and  shipped  to  Boston." 

THE    HOPS,    WOOL,    AXD    MINERAL    INDUSTRIES   OF   THE    PACIFIC   COAST. 

The  three  States  under  consideration  produce  three-fourths  of  all  the  hops  grown  in  the 
United  States,  and  a  large  share  of  the  Western  hops  is  shipped  to  our  own  and  European 
consumers.  The  production  of  hops  in  the  Western  States  can  be  much  increased  whenever  the 
market  conditions  warrant  a  larger  output.  At  the  present  time  but  a  small  share  of  the  hops  is 
shipped  east  to  our  own  or  foreign  countries  liy  water,  and  our  west  coast  is  compelled  to 
compete  with  European  growers  and  under  the  limitations  imposed  b3'  expensive  transportation. 

The  Pacific  coast  States  and  the  neighboring  commonwealths  of  the  CJordilleran  Plateau 
supply  the  woolen  mills  of  the  Eastern  States  with  a  large  part  of  the  fiber  they  require.  Only 
a  part  of  the  wool  would  be  shipped  through  the  canal,  but  the  freight  on  the  large  part  of  that 


250  PANAMA  CANAL  TEAP^FIC  AND   TOLLS. 

shipped  by  roil  from  points  west  of  the  one  hundred  and  fifth  meridian  would  be  affected  \>y  the 
isthmian  waterway. 

The  principal  mining  industrj'  of  the  Pacific  States  at  the  present  time  is  that  of  gold. 
Some  copper  is  mined  and  a  variety  of  other  minerals  in  small  quantities.  The  effect  of  a  canal 
upon  them  could  hardly  be  important.  Mining  machinery  would  be  obtained  somewhat  cheaper, 
and  the  canal,  by  promoting  immigration  and  more  rapid  settlement  in  the  West,  might  provide 
the  mining  companies  with  a  large  and  a  cheaper  supply  of  labor. 

EFFECT   OF    THE    CANAL    UPON    THE    TRADE    OF    WEST-COAST    PORTS. 

The  general  effect  of  the  canal  upon  the  people  of  the  Pacific  coast  will  be  that  of  enabling 
them  to  buy  cheaper  and  sell  dearer  and  to  carry  on  a  larger  trade  with  the  people  of  their  own 
and  foreign  countries.  The  manner  in  which  the  seaports  of  the  west  coast  will  share  in  this 
larger  trade  constitutes  an  inquiry  of  local  and  general  interest.  San  Francisco  is  the  centrally 
located  port  and  has  a  harbor  of  great  natural  excellence.  Formerly  that  city  controlled  nearly 
all  our  Pacific  coast  trade,  and  in  the  fiscal  year  1899-1900  about  67  per  cent  of  the  foreign 
commerce  of  the  Pacific  ports  was  handled  through  San  Francisco.  The  trade  of  San  Francisco, 
however,  has  avei-aged  but  little  more  during  the  past  five  5'ears  than  it  averaged  during  the  pre- 
ceding quinquennial  period.  The  value  of  the  imports  of  the  five  years  ending  in  June,  1900, 
shows  a  gain  of  24  per  cent  over  the  total  for  the  preceding  five  years,  while  the  expoi-ts  show  a 
decline  of  11  per  cent.  The  other  important  ports  of  the  Pacific  coast,  with  one  exception,  have 
had  an  increase  in  both  imports  and  exports,  and  in  the  case  of  the  Puget  Sound  section  the 
growth  of  foreign  trade  has  been  especially  rapid. 

The  resources  of  the  country  about  I'uget  Sound  have  been  much  developed  during  the  past 
decade,  and  the  transcontinental  railways  reaching  the  Sound  have  both  increased  the  facilities 
for  land  transportation  and  have  placed  in  service  trans-Pacific  steamship  lines  by  means  of  which 
they  are  able  to  make  through  shipments  between  interior  points  in  the  United  States  and 
the  Orient.  There  is  one  line  from  San  Francisco  to  the  Orient  operated  in  connection  with  a 
railway  company — the  Pacific  Mail  Steamship  Companj^;  but  from  Puget  Sound  there  are  three 
steamship  lines  operated  by  the  transcontinental  railway  companies.  The  consequence  has  been  an 
increase  in  the  foreign  trade  of  the  United  States  customs  district  of  Puget  Sound  from  $6,206,456 
in  1890-91  to  §25,051,670  in  1899-1900.  During  the  past  five  years  the  total  exp'orfs  from  the 
Puget  Sound  customs  district  were  146  per  cent  greater  than  the  exports  for  the  preceding  period 
of  equal  length.     The  total  imports  show  a  gain  of  about  500  per  cent. 

In  the  case  of  Portland,  or  the  customs  district  of  Willamette,  the  growth  has  been  less 
rapid,  a  comparison  of  the  totals  of  the  two  quinquennial  periods  showing  a  gain  of  60  per  cent 
in  exports  and  38.6  per  cent  in  imports.  In  the  foreign  trade  of  San  Diego  the  exports  of  the 
last  five  j'ears  are  nearly  treble  those  of  the  preceding,  but  the  imports  have  fallen  off  17  percent. 

The  foregoing  figures  indicate  that  with  the  exception  of  Puget  Sound,  where  there  has  been 
veiy  rapid  increase,  and  Portlatid,  where  the  growth  has  been  moderately  large,  the  maritime 
foreign  trade  of  our  west  coast  has  not  developed  greatly  during  the  past  decade.  The  opening 
of  the  isthmian  canal  may  be  expected  to  increase  the  ocean  commerce  of  the  Pacific  coast  section 
as  a  whole  and  enable  the  southern  seaports  to  make  a  better  showing,  as  compared  with  the 
northern,  than  tlic}'  have  been  making  in  the  past  decade. 

San  Diego,  Los  Angeles,  and  also  San  Francisco  will  not  only  have  a  better  route  to  the 
Atlantic  than  they  now  possess,  but  will  have  the  advantage  of  being  convenient  ports  of  call  for 
vessels  engaged  in  the  coasting  trade  between  our  two  seaboards  and,  to  some  extent,  for  the 
vessels  plying  between  Atlantic  and  Oriental  ports  through  the  canal.  The  short-distance  or 
great-circle  route  between  the  American  isthmus  and  Japan  and  China  runs  close  to  the  coast  of 
the  United  States,  and,  with  the  exception  of  those  vessels  that  desire  to  call  at  the  Hawaiian 
Islands,  this  route  will  he  the  one  naturally  taken  by  vessel  to  and  from  the  Orient.  This 
great-circle  I'oute  will  also  have  the  advantage  of  enabling  steamers  to  coal  on  the  west  coast  of 
the  United  States,  or  at  Vancouver,  where  satisfactoiy  steaming  coal  can  be  secured  comparatively 
cheanl.v.  Vessels  bound  for  the  East  will  be  obliged  to  run  against  opposing  winds  and  currents, 
but  this  disadvantage  will  probably  be  more  than  offset  by  the  shortness  of  the  route  and  b}"^  the 
coaling  facilities. 

How  will  the  canal  affect  the  maritime  commerce  of  ports  as  far  north  as  Portland  and  Pugefe 
Sound?  If  the  industrial  analysis  made  in  the  preceding  pages  is  accurate  there  will  be  a  large 
increase  in  the  exportation  of  agricultural  and  forest  products.  These  northern  ports  will  also  be 
the  natural  gateways  for  a  large  share  of  the  export  trade  of  Idaho,  Montana,  and  Wyoming, 
and  for  a  portion  of  the  commerce  of  British  Columbia.  It  would  seem  certain  that  the  canal 
will  enlarge  the  export  business  of  the  northern  Pacific  ports. 

The  canal  doubtless  will  secure  some  import  business  that  would  otherwise  be  turned  over  to 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  251 

the  transcontinental  railways  at  Puget  Sound  points  and  at  other  more  southed}-  Pacific  ports, 
but  a  study  of  the  through  business  now  being  done  by  the  transcontinental  railroads  shows  it  to 
be  of  small  amount,  so  small  that  the  canal  would  not  have  to  create  a  large  tonnage  of  new  traffic 
for  the  railways  to  cover  what  it  could  divert  from  the  roads.  A  discussion  of  the  transconti- 
nental railway  traffic  may  be  found  in  Chapter  X  of  this  report. 

There  are  two  forces  that  will  favor  Puget  Sound  as  a  gateway  for  imports  from  Japan  and 
the  Continent  of  Asia.  Vessels  on  their  eastward  voyage  across  the  northern  Pacific  along  the 
great-circle  route  for  the  southern  Pacific  ports  of  the  United  States,  or  for  the  American  isth- 
mus, will  add  only  about  600  to  600  nautical  miles  to  their  voyage  by  calling  at  Puget  Sound. 
Under  those  conditions  it  would  seem  that  Puget  Sound  points  would  natui-ally  become  important 
centers  for  the  distribution  of  Japanese  and  Asiati<>  goods.  But  in  addition  to  being  near  to  the 
ocean  highway,  along  which  a  large  quantity  of  imports  will  travel,  the  Puget  Sound  ports  will 
be  able  to  supply  steamers  with  coal.  The  coal  obtainable  in  these  ports  will  be  required  by  the 
vessels  engaged  "in  the  commerce  of  the  north  Pacific,  and  this  fuel  supply  will  give  to  Washing- 
ton and  British  Columbia  the  possession  of  a  magnet  that  will  attract  commerce  with  great  force. 
That  region  is  now  deriving  from  its  coal  much  assistance  in  the  development  of  its  commerce; 
the  opening  of  a  canal  will  inaugurate  commercial  conditions  on  the  Pacific  that  will  enhance 
rather  than  lessen  the  efficiency  of  Puget  Sound  coal  as  an  agency  for  the  promotion  of  commerce. 

In  this  discussion  of  the  relation  of  an  isthmian  canal  to  the  industries  and  commerce  of  the 
Pacific  coast  States,  only  the  larger  industries  of  the  section  have  been  considered.  The  business 
activities  here  dealt  with  are  concerned  mainly  with  the  production  of  food  and  the  raw  materials 
of  manufacture.  The  fisheries  and  horticultural  business  of  our  Western  States  require  a  con- 
siderable amount  of  auxiliary  manufacturing  for  local  purposes;  but,  with  the  exception  of  lumbei- 
and  flour  and  a  small  amount  of  leather,  the  Pacific  coast  manufactures  but  little  for  export.  This 
will  be  characteristic  of  the  section  for  some  time  to  come,  although  the  use  of  the  Puget  Sound 
coal,  and  the  petroleum  oil  of  southern  California,  and  the  application,  by  means  of  electricity, 
of  the  abundant  water  power  of  California  to  industrial  purposes  will  make  possible  a  greater 
diversification  of  industry  than  has  yet  been  accomplished. 

The  most  general  statement  that  can  be  made  of  the  efl'ect  which  an  isthmian  canal  will  have 
on  the  Pacific  coast  is  that  the  waterway  will  enable  that  section  to  meet  more  easily  and  success- 
fully the  growing  competition  of  those  countries  whose  similar  productions  make  them  commercial 
rivals  of  our  Western  States.  Argentina  is  a  lar^e  and  growing  exporter  of  grain,  wool,  and 
hides;  but  it  possesses  all  the  requisites  of  successful  horticulture,  and  just  as  our  Western  States 
have  done,  so  will  Argentina  become  a  large  producer  of  fruits  and  wine,  both  for  domestic  and 
foreign  markets.  Much  the  same  development  may  safely  be  predicted  of  South  Africa  and 
Chile.  Without  an  isthmian  canal  our  west  coast  will  have  increasing  difficulty  in  meeting  the 
competition  of  these  rival  sections. 


Chapter  VI. 

THE  COAIi  STTPPXiY  FOR  THE  COMMERCE  AND  COUNTRIES   OF  THE  PACIFIC— THE  CANAIj 
AND  THE  COAL  TRADE  OF  THE  UNITED  STATES. 

Abundant  and  cheap  coal  and  iron  are  resources  fundamental  to  highly  diversitied  industries 
and  an  extensive  domestic  and  foi'eign  commerce,  and  their  importance  increases  rather  than 
diminishes  with  the  development  of  the  economic  organization  of  society.  Whatever  affects  these 
resources  and  the  activities  directly  connected  with  them  strengthens  or  weakens  the  foundation 
upon  which  the  industrial  and  commercial  superstructure  of  society  is  ba.sed.  ('oal  has  become 
the  almost  universal  fuel  force  of  manufacturing  and  commerce;  and  except  in  that  limited  field 
where  electricity  generated  by  water  power  can  be  utilized  it  is  the  motive  power  of  business 
activity.  It  more  than  anj^  other  factor  determines  where  most  industries  shall  be  located,  and 
the  price  of  coal  is,  at  the  present  time,  not  only  determining  which  sections  within  each  country 
shall  succeed  most  largely,  but  it  is  also  deciding  which  of  the  industrially  resourceful  and  well- 
equipped  nations  of  the  world  is  to  achieve  the  highest  measure  of  economic  success. 

If  the  abundant  supply  of  coal  in  the  eastern  half  of  our  country  is  available  for  export  at  a 
moderate  cost,  it  will  tend  to  increase  the  use  of  the  isthmian  canal  by  the  merchant  marine  of 
our  own  and  foreign  countries,  to  facilitate  the  development  of  the  commerce  of  the  Pacihc,  and 
to  enhance  the  industrial  changes  that  may  be  wrought  by  the  waterway  on  the  west  coast  of 
South  America  and  North  America  as  far  north  as  southern  California.  With  the  exception  of 
the  coal  beds  of  the  section  of  country  adjacent  to  Puget  Sound  in  Washington  and  British 
Columbia,  there  are  as  yet  no  large  and  valuable  coal  supplies  on  the  entire  west  coast  of  the 
Americas  available  for  the  vessels  engaged  in  the  commerce  of  the  Pacific  or  for  the  fuel  which 
future  industrial  development  will  require.  There  are  coal  deposits  in  northern  Mexico,  northern 
Peru,  and  southern  Chile,  and  there  are  petroleum  fields  in  Peru.  These  several  sources  of  fuel 
may  possibly  become  valuable  for  the  commerce  and  industry  of  the  Pacific  coast  generally,  but 
what  has  thus  far  been  accomplished  in  connection  with  these  fields  would  hardlj^  warrant  one  in 
expecting  them  to  become  of  much  more  than  local  importance.  Probably  during  the  early  years 
of  the  use  of  the  canal,  and  possibly  for  many  years,  the  wesf  coast  of  America  from  California 
south,  and  the  coaling  stations  of  the  Pacific  generally,  will  draw  their  supply  from  other  than 
Mexican  and  South  American  sources. 

The  routes  followed  by  steamers  is  determined,  when  a  choice  is  possible,  almost  as  much  by 
coal  costs  as  by  distances.  The  larger  share  of  the  world's  ocean  commerce  originates  or  ends  in 
the  countries  about  the  North  Atlantic,  and  a  large  share  of  the  North  Atlantic  trade  with  the 
nations  of  the  Pacific  will  have  the  choice  of  the  Suez  and  American  canal  routes.  For  a  part  of 
this  Atlantic-Pacific  trade  the  Suez  route  will  be  shorter,  and  for  another  portion  the  American 
route  will  have  an  advantage  in  distance.  The  route  chosen  will,  to  some  extent,  depend  upon 
the  relative  cost  of  coal  at  the  stations  along  the  respective  routes.  This  is  equivalent  to  saying 
that,  in  the  competition  of  the  two  canals  for  the  traSic  free  to  choose  between  the  two  water- 
ways, the  route  will  be  more  successful  that  can  furnish  vessels  with  the  cheaper  coal,  unless  a 
disparity  in  toll  charges  and  the  chances  for  securing  and  delivering  cargo  at  intermediate  ports 
should  be  sufficient  to  offset  the  advantage  of  cheaper  fuel. 

An  abundant  supply  of  good  coal,  obtainable  at  moderate  prices  in  the  coaling  stations  of  the 
Pacific,  in  addition  to  the  commercial  and  industrial  benefits  conferred,  will  be  of  advantage  to 
our  Nav}%  because  of  the  necessity  of  our  maintaining  a  number  of  naval  vessels  on  that  ocean. 
The  efficiency  of  a  naval  squadron  is  even  more  dependent  than  that  of  a  merchant  fleet  upon  an 
adequate  and  sure  supply  of  good  coal,  and  whatever  will  increase  and  cheapen  the  coal  supply 
of  the  Pacific  will  enable  the  United  States  to  protect  its  commercial  and  colonial  interests  with 
fewer  risks  and  less  expenditure. 

SOURCES    FROM   WHICH    THE    COAL    CONSUMED   ON    THE    PACIFIC    IS   NOW   OBTAINED. 

The  Pacific  States  of  the  United  States  are  not  only  unable  to  export  much  coal,  but  are, 
with  the  exception  of  the  State  of  Washington,  obliged  to  import  large  quantities.  The  fuel 
reguired  by  the  steamers  on  the  Pacific  Ocean  and  for  industrial  purposes  by  the  countries  in  and 
adjacent  to  the  Pacific  Ocean  is  practically  all  supplied  by  other  countries  than  our  own.     In  1899 


P.^NAilA  CANAL  TRAFFIC   AND   TOLLS.  253 

■Ne  sent  a  small  amount  of  coal  for  the  first  time,  34,000  tons,  to  the  British  East  Indies,  and  less 
than  2,000  tons  to  the  Dutch  East  Indies.  This,  however,  was  due  to  unusual  conditions,  and 
does  not  indicate  the  probable  beginning  of  coal  exports  to  the  East  Indies.  For  several  jears 
we  have  sent  a  little  coal  to  the  Hawaiian  Islands,  probablj'  as  ballast,  and  in  1898  our  shipments 
to  the  Hawaiian  and  Philippine  Islands  reached  16,580  tons,  and  in  1899,  80,209  tons.  Nearly 
all  of  this  tonnage,  however,  can  probably  be  accounted  for  by  the  military  operations  which  we 
carried  on  in  the  East  after  the  spring  of  1898. 

Washington,  our  only  Pacific  State  having  a  surplus  of  coal,  produced  2,000,000  tons  in 
1899,  the  output  having  doubled  since  1893.  The  larger  part  of  this  coal  is  consumed  locally, 
some  of  it  is  used  by  the  steamers  calling  at  Puget  Sound  ports,  and  California  imports  about 
400.000  tons  annually. 

The  State  of  Oregon  has  coal  mines  of  minor  importance,  but  which  may  possibly  be  so 
developed  as  to  enable  that  State  to  supply  a  part  of  its  own  fuel  needs.  In  1898  the  output  of 
the  Oregon  mines  was  but  52,000  tons,  and  the  statistics  for  the  last  ten  j-ears  do  not  reveal  any 
tendency  toward  the  increased  output.  However,  there  are  said  to  be  veins  in  Oregon  which 
are  expected  to  yield  considerable  quantities  of  low-grade  bituminous  coal  in  the  future. 

Britisli  Columbia  has  well-developed  coal  mines  on  Vancouver  Island,  and  veins  that  are 
probabl}^  extensive  are  being  opened  up  on  the  mainland.  The  total  coal  production  of  Canada 
in  1898  was  4,172,655  tons;  ten  years  earlier  it  was  2,658,000  tons.  The  greater  part  of  the 
present  output  is  obtained  in  British  Columbia,  although  Nova  Scotia,  Quebec,  and  Ontario  all 
produce  limited  quantities. 

Regarding  the  coal  mines  of  Vancouver,  the  United  States  consul  at  Victoria  reports  that 
the  total  output  of  the  island  in  1898  was  1,117,915  tons,  and  for  1899, 1,666,251.  The  shipments 
to  foreign  countries  in  1898  were  765,961  tons,  and  in  1899,  769,091  tons.  San  Francisco  and  the 
southern  ports  of  California,  the  Hawaiian  Islands,  and  the  steamships  engaged  in  the  trade 
between  America  and  China  and  Australia  are  consumers  of  this  British  Columbia  fuel.  The 
imports  of  British  Columbian  coal  into  California  in  1899  amounted  to  652,926  tons,  which 
figures  represent  an  increase  of  50  per  cent  during  the  last  ten  j-ears,  although  the  amount  of 
British  Columbian  coal  imported  into  the  United  States  at  the  present  time  is  considerably  less 
than  it  would  be  had  not  the  coal  from  the  State  of  Washington  become  available  for  the  Cali- 
fornia trade.  The  constantly  increasing  use  of  petroleum  and  electricity  in  California  has 
probabh'  made  the  demand  for  coal  in  that  State  less  than  it  would  otherwise  have  been. 

At  the  present  time  neither  the  State  of  Washington  nor  British  Columbia  is  furnishing 
any  considerable  amount  of  coal  to  the  coaling  stations  of  the  Pacific  nor  sending  very  much 
coal  to  Pacific  countries  generall}' .  It  would  seem,  nevertheless,  that  the  supply  of  coal  in  this 
section  of  the  United  States  and  Canada  was  large  enough  to  make  possible  the  development  of 
an  important  coal  export  business.  Although  a  large  part  of  the  coal  thus  far  discovered  and 
worked  is  either  lignite  or  low-grade  bituminous,  and  but  little,  if  any,  bituminous  coal  equal  to 
the  best  bituminous  of  the  eastern  part  of  the  United  States  has  j'et  been  found,  the  best  coal  of 
Vancouver  and  the  State  of  Washington  is  satisfactory  for  steaming  pui'poses  and  is  now 
emplo}*ed  for  both  industrial  and  commercial  uses.  There  is  no  genuine  anthracite  coal  mined 
in  this  district. 

For  many  years  Japan  has  been  developing  her  coal  mines,  with  the  result  that  the  total 
production  rose  from  1,402,000  tons  in  1886  to  5,080,000  tons  in  1896.  During  this  decade  the 
domestic  consumption  rose  from  726,000  tons  to  2,936,000  tons.  Thus,  while  the  consumption 
grew  rapidly,  it  had  not  increased  so  fast  as  the  total  production,  and  Japan  was  able  to  increase 
her  exports  during  the  decade  from  776,000  tons  to  2,144,000  tons.  Since  1896  the  coal  exports 
from  Japan  have  increased  largely.  The  tonnage  figures  for  the  recent  production  and  expor- 
tation are  not  available;  but  the  value  of  the  coal  exported  rose  from  11,545,801  yen  ($5,772,900) 
in  1897  to  15,168,799  yen  ($7,584,400)  in  1898.  Japan  supplies  a  large  quantity  of  coal  to 
steamers  engaged  in  the  oriental  trade,  and  also  sends  coal  to  Pacific  ports. 

Australia  is  a  country  producing  a  moderate  but  increasing  amount  of  coal  of  good  quality, 
the  total  production  growing  from  4,179,000  tons  in  1888  to  6,313,000  tons  in  1898.  The  only 
colony  of  Australia  tliat  has  a  surplus  for  export  is  New  South  Wales,  whose  foreign  shipments 
in  1898  amounted  to  2,791,796  tons.  The  shipments  out  of  New  South  \Yales  are  larger  than  the 
total  exportation  of  Australia,  which  fact  indicates  that  some  of  the  New  South  Wales  exports 
were  to  other  Australian  colonies.  The  total  coal  imports  of  the  Australian  colonies  were 
1,000,000  tons,  and  two- fifths  of  this  amount  was  drawn  from  sources  outside  of  Australia. 
Australian  coal  is  at  the  present  time  distributed  quite  generally  throughout  the  Pacific,  the 
shipments  being  facilitated  by  the  cheap  transportation  available.  A  large  number  of  vessels 
leave  Australia  for  America  with  coal  as  ballast,  and  this  has  enabled  Australia  to  market  her 
coal  readily  in  Hawaii  and  in  both  North  and  South  America.  For  the  last  decade  California  has 
annually  procured  from  200,000  to  400,000  tons  of  Australian  coal,  and  Australia  and  Japan  are 


254  PANAJVIA  CANAL  TRAFFIC  AND   TOLLS. 

at  the  present  time  supplying  the  larger  part  of  the  coal  to  be  found  in  the  tropical  and  southern 
sections  of  the  Pacific. 

Another  important  source  of  the  coal  used  in  the  Pacific  is  Great  Britain.  The  vessels  which 
carry  the  grain,  lumber,  and  nitrates  of  the  west  coast  of  America  are  frequently  obliged  to  make 
the  outbound  voyao;e  from  Europe  in  ballast.  This  enables  Wales  to  compete  even  with  British 
Columbia  and  Washington  in  the  California  coal  trade.  A  part  of  the  coal  thus  imported,  a 
portion  of  which  is  Welsh  anthracite,  is  used  for  domestic  purposes.  The  continued  use  of 
British  coal  on  the  Pacific  is  due,  in  part,  to  its  superior  quality  and  in  part  to  the  exceedingly 
cheap  transportation  which  the  coal  is  able  to  obtain. 

In  addition  to  the  coal  supply  mentioned  above,  California  annually  purchases  in  the  eastern 
part  of  the  United  States  a  limited  amount  of  anthracite.  There  is  also  brought  from  the  Eastern 
States  a  limited  quantity  of  high-grade  bituminous  coal  for  smithing  purposes.  This  anthracite 
and  smithing  coal  are  obtained  from  Pennsylvania  and  Maryland,"  and  have  not  amounted  to 
50,000  tons  in  anj'  j'ear  during  the  past  decade. 

The  foregoing  survey  of  the  principal  sources  from  which  the  coal  used  on  the  Pacific  is  now 
secured,  will  serve  to  show  that  the  coal  fields  are  widely  scattered  and  are  by  no  means  so  pro- 
ductive as  those  in  the  eastern  part  of  the  United  States"  or  in  Europe.  The  Australian,  Wash- 
ington. British  Columbia,  and  Japanese  coal  fields  are  all  capable  of  development,  but  the  increase 
in  their  output  will  be  only  moderately  rapid.  Much  is  said  but  comparatively  little  is  known  in 
regard  to  the  coal  fields  of  China.  It  is  possible  that  within  the  next  decade  and  a  half  railroads 
will  have  been  con.structed  from  the  Chine.se  fields  to  the  seaboard  and  that  foreign  capital  will 
have  opened  up  the  Chinese  mines.  Should  that  take  place,  the  largest  future  coal  supply  for 
the  Pacific  will  be  China.  Unless  that  does  take  place,  however,  the  Pacific  coal  supply,  "until 
the  isthmian  canal  has  been  constructed,  will  be  drawn  from  the  four  countries  mentioned  above, 
unless  that  which  is  highly  improbable  should  occur  and  there  should  be  found  in  Mexico  and 
western  South  America  richer  fields  of  available  coal  than  are  now  known  to  exist. 

PUGET   SOUND    COAL. 

The  proximity  of  the  coal  resources  of  Puget  Sound  to  Oregon  and  California,  and  their 
availability  for  the  use  of  the  steamers  engaged  in  the  American-Asiatic  trade  of  the  North 
Pacific,  make  desirable  a  further  inquiry  into  the  quantity,  quality,  and  marketability  of  the  coal 
of  this  section. 

Although  the  Canadian  coal  production,  most  of  which  is  to  be  accredited  to  British  Columbia, 
was  only  4,172,655  tons  in  1S9S  and  had  increased  only  a  little  over  1,000,000  tons  since  1890,  the 
reports  of  our  consuls  and  other  sources  of  information  indicate  the  existence  of  extensive 
deposits.  These  coal  beds,  however,  are  not  especially  thick,  and  the  costs  of  mining  have  not 
been  so  low  as  in  the  great  coal-mining  regions  of  the  world.  The  best  mines  yet  developed  are 
those  of  Vancouver  Island  and  Crows  Nest  Pass,  both  of  which  produce  a  fair  grade  of  bitumi- 
nous coal  from  which  coke  can  be  made.  The  Crows  Nest  Pass  field,  at  the  eastern  edge  of  the 
Cordillera  Mountains,  near  the  Canadian  Pacific  Railway',  is  a  valuable  source  of  supply  for  the 
metal-mining  industries  of  the  mountain  district  and  for  the  section  of  the  country  just  east  of 
that  region,  but  is  too  far  from  the  coast  to  be  marketed  profitably  at  tide  water.  The  Vancou- 
ver coal  is  favorably  located  for  transportation,  and  it  has  been  the  source  of  most  of  Canada's 
exports  of  the  mineral.  Most  of  the  foreign  sales  of  this  coal  have  been  in  the  United  States, 
where  it  has  competed  successfully  with  the  product  of  other  countries,  without  being  able,  how- 
ever, to  monopolize  the  market. 

The  coal  mines  of  the  State  of  AVashington,  although  the  product  is  somewhat  inferior  to 
the  better  grades  of  the  British  Colum))ia  output,  have  been  developed  more  rapidlj'  than  have 
the  rival  Canadian  fields.  The  figures  of  production  remained  nearly  constant  at  about  1,000,000 
tons  from  1886  to  1893,  but  for  the  five  years  ending  in  1899  there  was  a  rapid  growth,  the 
amounts  being,  in  short  tons,  for  1895,  1,191,-ilO;  1896,  1,195,504;  1897,  1,434,112;  1898, 
1,884.571;  1899,  2,020,260.  The  latest  report  of  the  United  States  Geological  Survey,  that  for 
1899,  says: 

Washington  is  the  only  one  of  the  Pacific  coast  States  whose  coal  product  amounts  to  as  much  as  1  per  cent  of 
the  total  bituminous  output  of  the  United  States.  It  is  also  the  only  State  on  the  Pacific  coast  producing  true  bitumi- 
nous coal,  the  entire  product  of  California  and  Oregon  being  lignite  or  brown  coals.  Some  of  the  Washington  coals 
are  true  coking  coals,  over  50,000  tons  in  1899  being  made  mto  coke.  Some  of  the  coals  produced  in  Washington 
approach  anthracite  in  character,  and  some  "natural  coke"  has  been  observed. 

These  fields  have  an  area  about  three  times  that  of  the  Pennsj'lvania  anthracite  beds,  but  are 
not  especially  rich  deposits  except  in  limited  and  scattered  areas.  Like  those  of  the  Cordilleran 
Mountains  generally,  they  have  sufl'ered  badly  by  the  irregular  fracturing  of  the  earth's  crust. 

As  regards  the  quality  of  the  Puget  Sound  coal  three  sources  of  information  may  be  drawn 


Pi^AMA  CANAL  TRAFFIC   AND   TOLLS. 


255 


upon  in  this  discussion — the  studies  of  the  United  States  Geological  Survey,  to  which  reference 
has  just  been  made,  the  experience  of  those  using  the  coal  on  vessels  and  in  industries,  and  the 
tests  made  by  the  United  States  Navy. 

Several  large  consumers  of  coal,  including  the  ocean  steamship  companies,  I'eport  that  the 
Puget  Sound  coal  can  be  used  to  advantage  for  steaming  purposes,  although  it  is  inferior  to  the 
product  of  the  best  bituminous  fields.     The  president  of  one  of  the  steamship  companies  states: 

The  British  Columbia  coals  that  are  now  being  mined  are  considered  fair  average  steam  coals.  The  Washington 
coals  are  lignites,  semibituminous,  and  bituminous.  The  lignites  are  used  principaUy  as  house  coals,  the  screenings 
from  such  lignites  being  used  at  points  close  to  the  mines  for  steam  purposes,  as  they  are  sold  at  a  very  low  figure. 
The  semibituminous  and  bituminous  coals  range  from  fair  to  good  steam-producing  coals. 

One  firm,  using  as  much  coal  as  any  industrial  concern  on  the  Pacific,  which  ordinarily 
secures  its  coal  from  the  Washington  mines,  and  an  authoritj'  regarding  the  sources  of  the  coal 
used  in  California,  wrote  in  reply  to  the  question,  "Is  the  coal  from  Washington  and  British 
Columbia  good  for  steaming  purposes?" — 

The  lignite  coals  are  not.  Those  of  a  more  bituminous  character  are  so  used,  but  they  have  not  the  evaporative 
power  of  the  better  grades  of  bituminous  used  on  the  Atlantic  seaboard,  nor  are  they  so  good  as  the  bituminous  grade 
from  Australia  or  the  semianthracite  ceals  from  Cardiff  and  Wales. 

The  numerous  analyses  and  tests  made  by  the  United  States  IS'avy  of  coals  mined  in  different 
parts  of  the  world  indicate  that  the  Ijituminous  coals  of  West  Virginia  and  Wales  rank  highest, 
that  the  Alabama  coal  is  somewhat  better  than  the  Australian,  and  that  the  Australian  product  is 
superior  to  that  exported  from  Washington  or  British  Columbia. 

On  account  of  their  different  qualities  these  several  coals  will  sell  in  the  same  market  for 
different  prices;  and  the  decision  of  the  question  whether  the  Puget  Sound  mines  will  in  the  future 
control  the  market,  in  which  the  ships  and  industries  of  the  Pacific  coast  will  secure  their  coal,  will 
depend  both  on  the  relative  qualities  and  on  the  costs  of  mining  and  delivering  the  competing 
products.  The  foregoing  review  of  the  present  sources  of  the  coal  used  in  Pacific  markets  shows 
that  there  are,  and  will  be,  several  I'egions  competing  for  this  coal  trade.  The  nature  of  this 
competition  can  be  shown  to  advantage  by  a  brief  reference  to  the  coal  trade  of  California  at  the 
present  time. 

THE    FUEL   SUPPLY   OF   CALIFORNIA. 


The  sources  of  California's  coal  supply  constitute  one  of  the  interesting  facts  of  the  world's 
commerce.  Every  continent,  except  Africa  and  South  America,  is  drawn  upon.  Europe,  Asia, 
Australia,  and  both  sides  of  North  America  export  coal  to  California.  The  annual  jiroduction  of 
the  State  being  only  160,000  tons  of  low-grade  coal,  nearly  all  the  supply  has  to  be  imported. 
At  the  present  time  about  half  the  amount  consumed  is  received  from  foreign  countries,  and  half 
from  the  United  States.  The  following  table  shows  the  oi-igin  of  the  foreign  and  domestic 
imports,  and  indicates  that  the  American  product  is  gaining  on  the  foreign: 

Coal  imports  of  California.'^ 


, 

1889. 

1894. 

1899. 

Tons. 

Percent. 

Tons. 

Per  cent. 

Tons. 

Per  cent. 

Foreign: 

417,904 

408,032 

45,617 

1,340 

31.0 
30.0 
3.5 

647,110 
211,733 
176, 198 
15,637 

42.4 
13.9 
11.5 
1.0 

623, 133              36. 2 

Australia 

139,333 
93, 263 
9,390 

8.1 
5.4 

Japan  

.6 

Total 

872,893 

64.5 

1,050,678 

68.8 

865,059 

50.3 

Domestic: 

372,514 
87,600 
18,950 

27.5 
6.5 
1.5 

395, 173 
65,263 
16, 640 

2.5.9 
4.2 
1.1 

627,450 
189, 507 
38,951 

36.4 

11.0 

2.3 

Total 

479,064 

35.5 

477,076 

31.2 

855,908 

49.7 

1,351,957 

100.0 

1,527,754 

100.0 

1,720,967 

100.0 

a  In  addition  to  the  amounts  given  in  this  table  there  has  been  a  small  quantity  of  anthracite  annually  obtained  from  Utah  and 
Wyoming  since  1893.  The  figures  for  alternate  years  are,  for  1893,  21,562  tons:  1895,  37,530  tons:  1897,  44,343  tons,  and  1899,  19,000  tons.  The 
anthracite  imported  from  Wales  is  included  in  the  figures  for  Great  Britain  given  in  the  table. 

The  prominence  of  the  United  Kingdom  as  an  ocean  carrier  and  the  possibilities  of  her 
foreign  trade  in  coal  are  well  illustrated  by  her  large  shipments  of  that  bulky  commodity  halfway 
around  the  world.  In  past  j'ears  California  has  received  a  part  of  her  coal  from  Australia  and 
Great  Britain  in  ships  that  carry  her  wheat  to  Europe.     The  coal  from  Great  Britain  has  varied 


256  PANAMA  CANTAL  TEAFFIC  AND   TOLLS. 

from  'di  to  15  per  cent  of  the  total  imports  during  the  last  dozen  years,  while  the  supply  obtained 
from  Australia  has  ranged  from  11^  per  cent  to  30  per  cent  of  the  total.  In  the  past  from  25 
to  35  per  cent  of  the  California  supply  has  been  drawn  from  these  two  foreign  sources.  For 
several  reasons,  however,  coal  shipments  from  these  countries  are  falling  off.  The  price  at  which 
British  and  Australia  coal  can  be  sold  in  California  fluctuates  sharply,  and  rises  and  falls  according 
to  the  pi-ospectof  the  cereal  crops  and  the  expectation  on  the  part  of  shipowners  of  remunerative 
homeward  business.  Under  extremely  favorable  conditions  freights  on  coal  from  Great  Britain 
have  been  as  low  as  8s.  per  ton,  while  during  the  succeeding  year  they  have  reached  19s.  from 
the  same  ports. 

When  California  was  largely  dependent  upon  Great  Britain  and  Australia  for  her  coal  supply, 
the  practice  was  common  of  importing  the  coal  from  those  covmtries  on  a  speculative  basis,  the 
coal  shippers  sending  out  the  cargo  with  the  intention  of  selling  the  coal  on  or  before  its  arrival 
at  the  port  of  destination.  During  recent  yeai-s  California  buyers  have  adopted  the  practice  of 
making  contracts  for  the  delivery  of  coal  at  fixed  prices  for  periods  of  time,  and  the  speculative 
shipments  have  nearly  ceased.  This  change  in  business  methods  has  given  an  advantage  to  the 
coal  miners  of  the  Puget  Sound  section. 

The  decline  of  the  Australian  and  British  coal  in  the  California  trade,  and  the  concurrent 
development  of  the  Puget  Sound  coal,  is  well  illustrated  by  the  statistics  of  the  coal  imports  of 
that  State.  In  1889  Australia  furnished  30  per  cent  of  "California's  coal  needs;  in  1899  the 
Australian  shipments  formed  only  8  per  cent.  In  1899  but  a  small  amount  of  coal  was  shipped 
from  Great  Britain,  whereas  in  1892  15  per  cent  of  the  coal  imports  of  California  came  from 
the  United  Kingdom.  In  1899  the  supply  obtained  from  Great  Britain  amounted  to  only  5^  per 
cent.  The  State  of  Washington,  on  the  contrary,  supplied  California  with  27^  per  cent  of  her 
coal  in  1889,  and  with  36.-1  per  cent  in  1899.  In  1899  the  Puget  Sound  section,  including  British 
Columbia,  Vancouver,  and  the  State  of  Washington,  furnished  California  with  nearly  three- 
fourths  of  her  coal  supply.  Ten  years  earlier  the  amount  from  this  section  was  58i  per  cent  of 
the  total. 

The  importations  of  coal  into  California  have  increased  very  slowly,  the  present  amount 
being  only  If  million  tons,  whereas  twelve  years  ago  1^  million  tons  were  brought  into  the  State. 
These  figures  show  clearly  enough  that  California  has  not  yet  become  a  State  with  diversified 
manufacturing  industries,  her  principal  business  activities  being  concerned  with  the  production 
of  grain,  fruit,  and  wine,  the  .sawing  of  lumber,  and  the  mining  of  metals.  Most  of  the  manu- 
facturing is  auxiliary  to  these  industries. 

As  has  been  stated  in  another  chapter  of  this  report,  the  auxiliary  manufacturing  industries 
of  California  are  making  an  increasing  u.se  of  electrically  transmitted  water  power.  Electricity 
thus  generated  is  also  extensively  used  for  power  and  lighting  purposes  in  the  towns.  Further- 
more, California  would  be  obliged  to  use  more  coal  than  she  does  at  the  present  time  were  there 
not  petroleum  oil  fields  in  the  southern  part  of  the  State,  from  which  increasing  supplies  of 
oil  are  being  annually  taken  for  industrial  and  domestic  fuel  purposes  and  for  use  in  railroad 
locomotives. 

Concerning  the  value  of  oil  for  fuel  the  secretary  of  the  Los  Angeles  Chamber  of  Commerce 
makes  the  following  statement: 

At  the  present  time  it  is  estimated  that  4  barrels  of  oil  are'equal  to  1  ton  of  coal,  and  the  expense  of  handling 
the  same  is  so  much  less  that  3  barrels  of  oil  are  nearly  equivalent  to  a  ton  of  coal.  As  the  development  of  the  oil 
fields  continues  the  price  of  oil  will  be  reduced,  and  unless  the  present  price  of  coal  can  be  greatly  reduced  coal 
will  cease  to  be  a  factor  in  our  manufacturing  industries. 

This  statement  probabh'  overestimates  the  industrial  importance  of  the  development  of  the 
oil  fields  of  southern  California;  nevertheless,  the  opening  of  them  has  resulted  in  an  extensive 
substitution  of  oil  for  coal.     The  oil  is  not  adapted  to  lighting  purposes,  but  makes  a  good  fuel. 

The  foregoing  facts  indicate  that,  under  the  existing  conditions  of  transportation  and  competi- 
tion, the  coal  needs  of  the  west  coast  of  the  United  States  and  Canada  will  be  drawn  mainly,  and 
within  a  few  years  almost  entirely,  from  the  fields  near  Puget  Sound.  The  steamers  of  the  north 
Pacific,  excepting  such  as  make  the  trip  to  Australia,  will  draw  their  chief  supply  from  the  same 
section.  Will  the  opening  of  an  isthmian  canal  enable  the  coal  of  the  eastern  and  southern  por- 
tion of  the  United  States  to  enter  the  west  coast  markets  of  our  country?  Will  this  coal  from 
east  of  the  canal  be  able  to  compete  with  the  Puget  Sound  product  in  the  markets  of  the  tropical 
and  southern  sections  of  the  Pacific?  In  order  to  answer  these  questions  it  will  be  necessary,  first, 
to  inquire  into  the  prices  at  which  Puget  Sound  coal  can  be  sold  in  Pacific  markets,  and  then  to 
examine  the  present  and  prol)able  future  costs  of  delivering  our  eastern  and  southern  coal  at  tide 
water,  and  to  take  account  of  the  methods  that  will  probably  prevail  in  the  transportation  of  coal 
from  the  eastern  and  southern  mines  to  the  vicinity  of  the  canal  and  beyond,  when  that  water- 
way shall  have  become  available. 


PANAMA  CANAL  TKAFFIC   AND   TOLLS.  257 

PRICES   AND   COSTS   OF    COAL   IN    DIFFERENT    SECTIONS   OF   THE    UNITED    STATES. 

The  prices  of  coal  on  the  Pacific  coast  range  higher  than  the  prices  of  similar  grades  in  the 
Atlantic  ports.  In  the  Puget  Sound  cities  near  the  mines  "good  steam  coals"  range  in  price 
from  $-2.25  per  gross  ton,  for  the  lower  grades,  to  $3.25  per  gross  ton  for  the  better  qualities,  free 
on  board  vessels.  Vancouver  coal  sells  for  $2.50  to  $3.50  per  ton,  according  to  quality,  in  the 
British  Columbia  coaling  stations.  Portland  and  Astoria  secure  their  coal  from  the  Washington 
mines  at  a  cost,  delivered,  of  $4.60  to  $5.25  per  ton.  The  authority  for  these  figures  is  the  gen; 
eral  manager  of  a  steamship  company  doing  a  large  coasting  business,  and  he  also  states: 

San  Francisco  uses,  for  houseliold  purposes,  a  large  quantity  of  Wasliington  lignite  coals  and  British  Columbia 
bituminous  house  coal.     For  steam  purposes  the  British  Columbia  and  Washington  bituminous  coals  are  used,  rates    , 
ranging  from  $4.80  to  $5.50  per  gross  ton  at  the  wharf." 

Another  authority  says: 
The  San  Francisco  prices  are  variable.     Steam  coals  from  Washington  will  vary  from  $5  to  $6  per  ton;  from 
Vancouver  Island  from  $5.50  to  $7,  and  from  Australia  from  $5.50  to  $7.50  (gross  tons  in  each  case). 

The  same  gentleman  reports  that  the  price  paid  by  a  San  Francisco  firm,  whose  business 
requires  a  large  amount  of  coal,  ranges  from  §4.75  to  $5.25,  delivered  from  the  ship.  This  coal 
ordinarily  comes  from  the  Puget  Sound  mines  in  Washington. 

The  superior  quality  of  the  Comox  and  other  British  Columbia  coal  enables  them  to  com- 
mand a  somewhat  higher  price  than  the  Washington  product,  but  the  Washington  mines,  prob- 
ably on  account  of  our  tariff  of  67  cents  a  ton  on  bituminous  coal,  have  been  annually  securing  a 
larger  percentage  of  the  coal  business  of  California  and  Oregon.  The  imports  of  the  British 
Columbia  coal  into  California  have  remained  aliout  constant  during  the  last  si.x  years.* 

The  prices  just  cited  are  probably  not  the  lowest  ones  possible  in  the  future.  When  the 
market  shall  have  become  larger,  when  new  mines  shall  have  been  developed,  and  those  now  in 
operation  shall  be  worked  on  a  larger  scale,  and,  what  is  most  important,  when  the  means  of 
land  and  ocean  transportation  shall  have  been  improved,  enlarged,  and  cheapened,  the  Puget 
Sound  mine  operators  can  doubtless  deliver  coal  in  California  and  elsewhere  considerably  cheaper 
than  at  present.     It  is  the  belief  of  one  competent  to  speak  that— 

The  foreign  sources  of  supply  are  becoming  less  important  to  us  (California)  with  the  development  of  northern 
mines,  and  the  day  is  not  far  distant  when  the  northern  capacity  will  be  equal  to  the  entire  demand.  At  the  moment 
it  would  seem  to  be  a  question  of  miners  and  water  transportation,  for  certainly  the  northern  coals  can  be  laid  down 
here  at  a  cost  so  far  below  that  of  coals  from  Great  Britain  and  Australia  as  to  overcome  any  possible  difference  in 
quality. 

The  coal  exported  from  the  eastern  half  of  the  United  States  will  be  taken  mainly  from  two 
sections,  the  Pennsylvania  and  West  Virginia  fields  in  the  Upper  Ohio  Valley  and  the  mines  in 
north  central  Alabama.  The  coal  from  the  Upper  Ohio  Valley  section  is  shipped  by  rail  to  the 
several  North  Atlantic  ports,  where  it  is  sold  in  large  amounts  to  industrial  plants  and  ocean 
vessels,  and  whence  a  limited  quantity  is  now  exported  to  foreign  countries  for  naval  and  industrial 
purposes.  In  the  handling  of  coal,  both  for  domestic  coastwise  distribution  and  for  foreign 
export,  Norfolk  and  Newport  News  have  some  advantares  over  the  Atlantic  ports  north  of  them, 
because  of  the  exceptionally  high  grade  of  the  coals  handled  and  the  spacious  and  inexpensive 
terminal  facilities  possible  in  their  harbors,  which  are  also,  because  of  their  nearness  to  the  ocean, 
convenient  stations  for  vessels  desiring  to  coal. 

The  railway  haul  from  the  mines  to  Baltimore  and  Philadelphia  is  somewhat  shorter  and  more 
economical  than  to  Norfolk  and  Newport  News,  but  the  disadvantage  of  the  longer  railway 
distance  to  the  ports  at  the  mouth  of  the  James  is  counterbalanced  by  the  closer  proximity  of 
those  cities  to  the  sea,  and  their  central  situation  on  the  Atlantic  coast. 

The  Ohio  River  is  another  route  used  for  the  shipments  of  large  quantities  of  coal  from 
Pennsylvania  and  West  Virginia.  The  coal  sent  down  the  Ohio  is  mainly  destined  for  Cincinnati 
and  other  Ohio  River  points,  but  a  considerable  share  of  the  total  is  distributed  along  the  Missis- 
sippi, about  3,000,000  short  tons  reaching  New  Orleans  each  year.  The  distance  from  Pittsburg 
to  New  Orleans  by  river  is  about  2,200  miles,  and,  as  will  be  .shown  presently,  it  is  the  extra- 
ordinarily cheap  transportation  which  this  river  navigation  makes  possible  that  will  in  the  future 
give  importance  to  the  Upper  Ohio  Valley  as  a  coal-exporting  section  of  the  United  States. 

The  city  of  Birmingham,  in  the  Alabama  coal  and  iron  district,  is  about  260  miles  by  rail 

a  The  unavoidable  use  of  both  long  and  short  tons  in  this  discussion  may  be  confusing.  Bituminous  coal  from 
Pennsylvania  and  West  Virginia  and  Virginia  is  sold  in  the  Atlantic  ports  by  the  ton  of  2,240  pounds;  in  the  Gulf 
ports  by  the  ton  of  2,000  pounds.     On  the  west  coast  coal  prices  are  quoted  on  the  ton  of  2,240  pounds. 

b  These  figures  regarding  the  prices  of  western  coal  are  for  the  year  1900.  Coal  prices  were  high  that  year  and 
have  since  remained  higher  than  they  averaged  during  several  years  preceding  1900.  However,  it  is  not  probable 
that  the  circumstances  are  permanent  which  have  kept  the  price  of  coal  at  the  high  level  of  the  four  years  ending 
in  1904. 


258  PANAMA  CANAL  TEAFFIC  AND  TOLLS. 

from  Mobile  and  Pensacola  and  360  miles  from  New  Orleans.     The  deposits  are  rich,  the  costs  of 
mining  are  comparatively  low,  and  the  distance  to  good  tide-water  harbors  is  short. 

The  prices  of  coal  have  recently  been  high  on  account  of  the  almost  unprecedented  industrial 
demands  of  the  past  two  years.  In  September,  1900,  two  members  of  the  Isthmian  Canal  Com- 
mission had  a  conference  in  Pittsburg  with  persons  shi])ping  large  quantities  of  coal  down  the 
Ohio  and  Mississippi  rivers,  and  the  price  at  which  bituminous  coal  was  then  selling  in  New 
Orleans  was  found  to  be  39  cents  a  bushel,  or  $-i.S2  a  ton  of  2,000  pounds.  It  was  also  stated  by 
»  prominent  coal  merchant  that  $3.50  a  short  ton  in  New  Orleans  would  be  as  low  a  price  as 
would  be  accepted  at  that  time,  even  on  a  contract  calling  for  the  delivery  of  a  large  quantity. 
In  reply  to  an  inquii-y  addressed  to  the  secretary  of  the  New  Orleans  Board  of  Trade  in  July, 
1900,  the  response  received  was: 

A  large  dealer  here  advises  that  $3.50  per  short  ton  would  about  cover  cost  of  Pittsburg  coal,  and  Alabama 
would  be  about  the  same. 

The  same  inquiry  was  made  of  the  general  freight  agent  of  one  of  the  Gulf  railroads,  and  his 
reply,  under  date  of  July  10,  1900,  was: 

I  have  addressed  dealers  in  coal  asking  for  their  prices  free  on  board  vessels  Pensacola  and  Mobile  for  export. 
I  am  quoted  on  coal  free  on  board  vessels  at  Pensacola  $2.60  per  ton  of  2,240  pounds,  and  at  Mobile  $2.35  per  ton  of 
2,000  tons  ($2.64  per  long  ton). 

There  is  no  export  business  moving  through  New  Orleans,  nor  has  it  moved  that  way  for  some  time,  but  the  cost 
of  coal  free  on  board  vessels  at  New  Orleans  would  probably  be  at  least  75  cents  per  ton  higher  than  to  Mobile  and 
Pensacola. 

The  price  of  coal  for  local  use  was  considerably  higher  at  that  time,  because  the  railway 
companies  regularly  make  a  large  rebate  in  their  rate  when  the  coal  handled  is  exported  or  sold 
to  vessels  other  than  tugs  or  local  harbor  crafts.  The  export  price  for  the  best  Pocahontas  coal 
in  October,  1900,  was  $2.60  per  2,240  pounds.  The  bunker  price  of  that  coal  was  then  $3.10  per 
long  ton  trimmed  in  bunkers.  At  the  .same  time  the  price  of  bituminous  coal  in  vessel  cargo  fots 
at  Philadelphia  was  $2.30  per  gro.ss  ton.  The  price  paid  by  local  manufacturers  was  $3.75  per 
long  ton. 

The  prices  just  quoted  were  so  much  above  the  charges  which  had  prevailed  during  previous 
years,  that  it  was  necessary  for  the  accomplishment  of  the  purposes  of  this  investigation  to  inquire 
what  price  conservative  business  men  considered  would,  under  existing  conditions  of  transporta- 
tion, cover  the  costs  of  mining  and  delivering  the  coal  at  the  seaboard,  including  adequate  business 
protits. 

Pittsburg  firms  mining  and  shipping  coal  by  rail  and  by  river  state  that  the  cost  of  the  coal 
at  that  section  need  not  average  over  $1  per  short  ton  on  the  barges  in  the  Monongahela  River, 
and  that  under  the  present  conditions  of  Ohio  River  navigation,  a  rate  of  $1  jier  short  ton  would 
yield  a  good  profit  to  the  vessel  men  for  transporting  the  coal  from  Pittsburg  to  New  Orleans. 

One  of  the  Pittsburg  firms  doing  a  large  business  in  mining  coal  and  shipping  it  down  the 
Ohio  and  Mississippi  rivers  prepared  the  following  detailed  statement  of  the  cost  of  mining  coal 
and  getting  it  to  New  Orleans.  The  items  are  not  estimates,  but  are  the  costs  actually  incurred. 
The  word  "ton"  means  2,000  pounds: 

One  ton,  mine-run  coal,  f.  o.  b.  works ...per  ton..  $0.  75 

Expen.se  of  transporting  same  to  Pittsburg do 10 

Transporting  from  Pittsburg  to  Louisville do 20 

Transporting  from  Louisville  to  New  Orleans ' do 37 

Cost  of  boat  containing  coal do 70 

Total  cost  of  coal  and  boat  at  New  Orleans do 2. 12 

Only  about  30  per  cent  of  the  coal  barges  or  flats  sent  to  New  Orleans  are  brought  back; 
the  remaining  seven-tenths  are  sold  as  rough  lumber  mainly  to  the  planters.  According  to  the 
above  statement  the  purchaser  of  the  coal  is  charged  70  cents  per  ton  of  coal  for  the  boat  con- 
taining the  coal.  The  firm  that  submitted  the  .statement  accompanied  the  list  of  costs  with  the 
following  explanation: 

In  the  event  that  we  want  the  boat  back  after  having  been  unloaded,  we  buy  it  back  from  the  customer  at  a  very 
low  price,  thus  enabling  us  to  get  the  boat  back  home  with  a  profit  to  us. 

The  cost  of  coal  in  New  Orleans  is  the  same,  whether  the  barge  be  towed  back  to  the  coal 
mines  or  not. 

This  statement  as  to  the  cost  of  coal  on  the  barges  seems  to  be  corroborated  by  the  fact  that 
the  price  of  Pennsylvania  bituminous  at  the  mine  has,  according  to  the  reports  of  the  United 
States  Geological  Survey,  avei-aged  76.4  cents  during  the  past  decade  The  testimony  of  the 
above-mentioned  firm  and  of  otjfier  Pittsburg  coal  merchants  is,  that  Pittsburg  coal  could  be 
delivered  with  profit,  in  large  (luuntities  on  board  ves.sels  in  New  Orleans,  at  a  total  charge  of  $2 
to  $2.25  per  short  ton,  or  f2.50  per  ton  of  2,240  pounds. 


PANAMA  CANAL  TRAFFIC  AND   TOLLS.  259 

In  Birmino-ham,  Ala.,  the  committee  of  the  Commission  was  informed  in  September  1900, 
bv  the  vice-prt^sident  of  one  of  the  hirge  mining-  and  transportation  companies  that  Alabama 
coal  could  be  profitably  sold  at  that  time,  free  on  board  vessels  at  Gulf  ports  at  ^2.o0  per  short 
ton  That  this  estimate  was  a  liberal  one  is  proven  by  the  fact  that  for  the  last  ten  years_  the 
average  price  of  Alabama  coal  at  the  mines  has  been  9(3  cents,  and  that  at  the  time  the  committee 
visited  Birmino-ham  the  railroad  freight  rate  on  coal  for  export  from  the  Birmingham  district 
to  Mobile,  including  "the  cost  of  placing  the  coal  into  the  ship's  hold  at  the  coal  chute,  was 
$1.10  per  ton  of  2,000  pounds.  i     «r         *  j-        + 

In  1898  the  averao-e  mine  cost  of  Alabama  coal,  as  a  whole,  was  only  75  cents,  according  to 
the  report  of  the  United  States  Geological  Survey,  and  in  Jefferson  County,  where  57  per  cent 
of  the  total  production  of  the  State  originated,  the  average  mine  cost  was  but  69  cents  per  ton  ot 
2  000  pounds.  The  railway  charges  in  1900  were  generally  higher  than  they  were  in  previous 
vears  and  more  than  they  need  to  be  in  the  future  for  the  conduct  ot  a  larger  volume  ot  traffic 
according  to  the  most  improved  methods.  Indeed,  the  export  rate  on  pig  iron  from  Birming- 
ham has  been  $1  per  ton.  In  view  of  these  figures  and  of  the  testimony  of  several  Alabama  men 
engaged  in  the  transportation  and  mining  business,  it  would  seeni  certain  that  coal  f^m  the 
Birmingham  district  can  now  be  sold  free  on  board  vessels  at  Mobile  and  Pensacola  for  ^1.7»  to 
$2  per  short  toil  (§1.9<)  to  §2.24  per  long  ton).         ■  .  ^-       ^,      v     ,u    t.i     f 

Under  the  present  (19(iO)  conditions  ot  raining  and  transportation  the  iNorth  Atlantic^  sea- 
board cost  of  bituminous  coal  free  on  board  can  be  placed  at  $2.25  to  $2.50  a  long  ton  or  $2  to 
$2.25  a  short  ton,  depending  upon  the  quality  of  the  coal  and  the  ports  through  which  it  is 

^"  Briefly  stated,  it  appears  that  the  cost  of  bituminous  coal,  under  existing  conditions  of  trans- 
portation, mav  be  expected  to  be  somewhat  higher  on  the  North  Atlantic  seaboard  than  in  the 
Gulf  ports  of  "Pensacola  and  Mobile;  and  that  in  the  New  Orleans  market  the  upper  Ohio  "Valley 
coal  will  normally  rano-e  about  25  cents  above  the  price  of  Alabama  coal  in  Pensacx)la  and  Mobile. 
In  respect  to  the  qualitv,  however,  the  coal  from  the  Pittsburg  section  is  somewhat  superior  to 
that  from  Alabama,  the  difference  probablv  being  sufficient  to  offset  the  greater  price  ot  the 
more  northern  product.  Speaking  generally,  the  mine  operators  of  the  eastern  and  southern 
parts  of  the  United  States  could  offer  bituminous  coal  for  export  for  $1.  (5  to  ^2.25,  or  at  an 
average  price  of  about  $2  a  short  ton. 

RIVER   TRANSPORTATION    OF   COAL    FROM   PENNSYLVANIA,  WEST   VIRGINIA,  AND   ALABAMA. 

The  Ohio  River  traffic  is  a  matter  of  such  importance,  in  connection  with  this  discussion  of 
the  exportation  of  American  coal  to  and  bevond  the  isthmian  canal,  that  a  brief  description  ought 
perhaps  to  be  given  of  the  manner  in  which  the  coal  transportation  is  now  conducted  on  the 
river  The  following  statement  of  the  methods  of  handling  the  coal  traffic  originating  in  the 
Monono-ahela  River  Vallev  is  taken  from  a  special  report  of  the  Chamber  of  Commerce  of  Pitts- 
burg After  stating  that  the  Monongahela  River  has  been  made  navigable  102  miles  above 
Pittsburg  bv  means  of  nine  locks  and  clams  constructed  and  operated  by  the  United  States  Gov- 
ernmentfand  that  the  river  ffows  through  the  center  of  rich  coal  fields,  the  secretary  says: 

Three  species  of  boats  loaded  on  the  Monongahela  River  for  the  Ohio  River  trade  are  used  by  the  ahippere  viz: 
Coal  boats   drawing  8  to  8i  feet  and  carrying  1,000  to  1,100  tons;  coal  barges,  dra^vlng  6  to  ^  leet,  carrying  500  tons, 

'"'  Th'e  ^'iXSlv  briS'flom  ?he"ines  about  3,000  tons  of  coal  in  small  fleets.  arrang«l  for  passing  the  locks 
ronvenientlv  *  *  *  "At  Pittsburg  *  *  *  the  small  coal  fleets  are  moored  whde  awaiting  rises  sufficient  for 
navigation  on  the  Ohio  River.  *  *  *  When  rises  of  10  feet  occur,  or  sufficient  for  8-foot  coal  barges,  fleets  from 
10,000  to  15,000  tons  are  made  up  for  shipment  to  Cincinnati  or  Louisville. 

At  Lou  sville,  two  and  sometimes  three  of  the  Pittsburg  fleets  are  made  up  into  monster  fleets  of  fiom  35  000  to 
40,000  tons  and  towed  to  New  Orleans  by  powerful  tow  boats.     A  fleet  conveying  40,000  tons  covers  about  10  acres. 

The  coal  fields  of  Alabama  lie  along  streams  capable  of  providing  uavig-ation  to  Mobile  for 
baro-es  drawing  about  6  feet  of  water;  and  these  rivers,  particularly  the  Warrior  which  flows 
throuo-h  the  most  productive  coal  deposits,  are  being  improved  by  means  of  locks  and  dams  Coal 
can  now  be  barged  from  a  few  miles  above  Tuscaloosa,  Ala. ,  through  the  Warrior  and  Tombigbee 
rivers  to  Mobile,  and  when  the  Warrior  River  improvements  shall  have  been  extended  45  miles 
farther  to  Jefferson  County,  it  will  be  possible  to  ship  coal  in  barges  carrying  from  400  to  500 
tons  and  drawing  6  feet  of  water,  directly  from  the  mines  to  the  Gulf.  The  barges  can  be  con- 
structed of  the  low-priced  steel  obtainable  in  the  Birmingham  district,  and  by  means  ot  them  coal 

can  be  profitably  transported  to  tide  water  for  50  cents  a  ton.  

The  coal  barges  now  so  extensivelv  used  on  the  Ohio  and  Mississippi  rivers  are  made  ot 
wood.  Some  of  them  are  strongly  built,  and  after  discharging  their  cargoes  are  towed  back  to 
the  mines  for  reloading.  A  large  share  of  the  coal  barges  (70  per  cent  ot  those  used  tor  shipping 
coal  to  New  Orleans)  are  constructed  as  cheaply  and  f  ragilely  as  possible,  and,  as  was  stated 


260 


PANAilA  CANAL  TEAFFIC   AND   TOLLS. 


above,  arc  sold  for  rough  lumber  in  or  near  New  Orleans.  That  these  types  of  barges  will  be 
used  a  decade  or  fifteen  years  hence  seems  improbable,  in  view  of  the  increasing  costs  of  lumber 
and  the  declining  costs  of  steel.  The  pressed  steel  car  is  rapidly  displacing  the  wooden  one 
for  railway  coal  traffic,  and  it  is  rational  to  expect  that  wood  will  give  place  to  steel  in  barge 
construction. 

Steel  river  barges  with  a  draft  of  6  to  10  feet  and  a  capacity  of  500  to  1,000  tons  will  have 
the  added  advantage  of  being  strong  enough  to  be  towed  on  the  Gulf  and  Caribbean.  By  means 
of  them  coal  can  be  shipped  directly  from  the  Pennsylvania,  West  Virginia,  and  Alabama  mines, 
not  only  to  the  Gulf  ports,  but  also  to  the  coaling  stations  of  the  West  Indies,  Mexico,  and  Central 
America,  including  the  important  stations  that  will  certainly  be  established  at  the  termini  or  along 
the  line  of  the  canal. 

It  is  possible  the  opening  of  an  isthmian  canal  will  lead  to  the  use  of  a  special  type  of  I'iver 
barge  for  handling  coal  for  export.  A  barge  capable  of  drawing  15  to  20  feet  of  water  might  be 
loaded  to  a  draft  of  9  feet  at  the  mines,  to  a  draft  of  12  feet  at  Louisville,  and  for  six  months  of 
the  year  to  15  or  20  feet  at  Vicksburg.  Barges  of  this  size  and  type  could,  of  course,  be  towed 
through  to  any  desii'ed  seaport,  American  or  foreign.  The  suggestion  that  such  barges  might  be 
used  was  made  by  a  gentleman  who  has  had  large  experience  in  shipping  coal  down  the  Ohio. 
Under  these  conditions  of  transportation  coal  costing  §1  per  short  ton,  free  on  board  at  the  mine, 
could  be  sold  in  Panama,  Greytown,  and  other  Caribbean  or  Gulf  ports  for  $3  or  less  per  ton. 
American  coal  at  $3  a  ton  of  2,000  pounds  in  these  ports  will  not  onlv  hold  the  market  against 
all  foreign  competition,  but  will  be  so  much  less  expensive  than  the  price  at  which  coal  can  be 
obtained  along  the  Suez  Canal  route,  as  to  give  the  American  route  a  strong  commercial  advantage 
resulting  from  the  possession  of  cheap  coal  for  steamers. 

In  1900,  when  the  prices  were  high,  coal  was  selling  from  $5.83  to  $8.03  a  gross  ton  under 
yearly  contracts  along  the  Suez  Canal  route,  the  price  increasing  with  the  distance  from  the 
British  mines.  The  following  average  contract  prices  of  coal  have  prevailed  during  each  of  the 
past  five  years  at  the  more  important  stations  along  the  Suez  route,  the  figures  having  been 
obtained  from  a  large  coal  mercJbant  of  London  b}'  the  London  representative  of  an  American 
firm  of  shipbrokers. 

Contract  prices  in  shillings  and  pence  for  the  past  five  years. 


[London,  E.  C. 

October  31,  1900.] 

Coal  port. 

1896. 

1897. 

1898. 

1899. 

1900. 

s.     d. 
22    6 
25    6 
16    6 
15    6-16 
15    6 
15    6 

S.      d. 
29    0 
C) 
18    0 
15    6-16 
15    6 
15    6 

s.     d. 
26      6 

19<"'6 
18    0 
18    0 
17    0 

«.      d. 
29      0 
34      0 
23      0 
22      0 
22      6 
21      6 

s.      d. 
35      6 

36      6 

26      0 

24      0 

Algiers                  .     .             

25      0 

24      0 

a  No  contracts. 

Note. — The  above  are  prices  at  which  contracts  were  made  with  the  principal  shipowners  for  the  years  named,  and  do  not  show  varia- 
tions in  "current"  prices  that  occurred  from  time  to  time.  All  large  shipowners  contract;  therofore  the  variations  in  the  respective  "cur- 
rent" prices  do  not  affect  them.  The  contract  prices  in  the  autumn  of  1900  at  Port  Said  were  26s.,  but  current  prices  there  were  40s.  The 
contract  prices  for  1901  were  higher  than  those  lor  1900. 

"During  the  years  1896  and  1897,"  according  to  the  London  informant,  "the  Welsh  coal 
market  was  quiet  and  freights  were  much  lower  than  for  the  past  two  years;"  but  even  during 
those  years  the  coal  costs  along  the  Suez  route  were  higher  than  the  probable  future  cost  of  coal 
in  the'  stations  of  the  West  Indies  and  the  Caribbean.  Moreover,  every  indication  points  to 
increasing  rather  than  diminishing  costs  of  coal  in  Europe,  and  the  future  prices  of  European  coal 
in  the  Mediterranean,  Red,  and  Arabian  seas  can  hardly  be  expected  to  be  so  low  as  they  have 
prevailed  in  normal  times  in  the  past. 


CONCERNING    THE    MARKETING    OF   APPALACHIAN    COAL   WEST    OF   THE    CANAL. 

Well-informed  men  engaged  in  mining  and  shipping  coal  testified  in  September,  1900,  that 
the  freight  rate  would  then  be  about  $3  per  ton  for  shi^Dping  coal  5,000  knots  in  chartered 
vessels.  Assuming  a  tide-water  price  of  $2.50  per  gross  ton,  a  canal  toll  of  45  cents  per  cargo 
ton  (this  would  be  about  equal  to  $1  per  vessel  net  register),  and  a  freight  rate  of  $3  a  ton,  coal 
from  the  mines  east  of  the  Mississippi  River  would  have  sold  for  about  $5.95  a  long  ton  in  1900 
in  California,  Hawaii,  and  the  west  coast  of  South  America.  This  price  of  $5.95  is  not  suggested 
as  the  probable  price  of  eastern  coal  in  Pacific  markets  after  the  opening  of  the  canal,  but  it  has 
some  value,  inasmuch  as  it  represents  a  maximum,  and  shows  what  would  be  quoted  were  the 
present  conditions  as  regards  costs  of  coal  and  transportation  to  prevail. 


PANAJVIA  CANAL  TRAFFIC   AND   TOLLS.  261 

After  the  canal  has  become  available,  coal  can  be  shipped  through  it  to  Pacific  ports  either  as 
ballast,  as  berth,  or  part  cargo  freight,  as  full  cargo  shipments  in  chartered  vessels,  or  in  towed 
barges.  The  rates  for  part  cargoes  or  berth  lots  will  in  all  probability  be  so  high  as  usually  to 
preclude  shipments  of  that  character,  but  there  will  be  a  large  amount  of  steam-vessel  tonnage 
going  in  ballast  or  with  light  cargoes  westsvard  through  the  canal  for  the  Chilean  nitra,te,  the 
Hawaiian  su"-ar,  and  the  grain  and  lumber  of  the  west  coast  of  the  United  States  and  Canada. 
Such  beino-  the  case,  there  will  naturally  be  more  or  less  coal  carried  as  ballast  to  those  ports  of 
the  Pacific^and  at  a  very  low  freight  rate.  Moreover,  vessels  may  be  owned  or  chaitered  by  coal 
companies  for  the  purposes  of  taking  westward  full  cargoes  of  coal  and  bringing  eastward 
nitrates,  sugar,  grain,  or  lumber.  ,    ,     ,  . »    ,  j     i.  j  j: 

It  is  furthermore  probable  that  the  steel  barges  described  above,  if  they  are  adopted  tor 
river  traffic,  will  be  towed  with  their  cargo  through  the  canal  to  Central  American  and  west 
South  American  ports  within  a  thousand  miles  of  the  canal.  The  smooth  water  of  this  part  of 
the  Pacific  coast  will  be  favorable  for  towing,  and  there  will  be  economy  in  shipping  direct  from 
the  mine  to  the  Pacific  port  without  transfer  of  cargo. 

In  view  of  these  favorable  facilities  for  the  transportation  of  coal  westward  it  would  seem 
conservative  to  expect  the  freight  costs  of  sending  coal  from  the  Gulf  ports  and  the  Atlantic  ports 
of  Norfolk  and  Newport  News  to  points  5,000  knots  distant— that  is,  in  general  terms,  to  north- 
ern Chile,  Hawaii,  and  our  west  coast— will  be  as  low  as  §2  per  ton  of  2,2i0  pounds,  and  possibly 
less  in  exceptional  cases.  The  foregoing  estimates  regarding  the  cost  of  coal  were  that,  with  the 
existing  transportation  agencies,  coal  can  be  sold  at  tide  water  on  the  Atlantic  and  Gulf  for  an 
average  cost  of  ^2  per  gross  ton,  and  that  the  costs  of  shipping  coal  to  the  Gulf  will  probably  be 
less  in  the  future  than  thev  now  are.  Assuming  that  the  cost  of  coal  at  Gulf  and  Atlantic  ports 
will  at  the  time  of  the  opening  of  the  canal  range  from  $1.50  to  $2.25  per  gross  ton  (depending 
upon  the  quality  o^  the  coal,  the  port  of  shipment,  and  the  conditions  of  the  market),  that  the 
ocean  freight  will  be  $2  per  ton,  and  the  canal  tolls  45  cents  per  cargo  ton,  the  cost  of  delivering 
Pennsylvaliia,  West  Virginia,  and  Alabama  coal  in  the  ports  of  the  west  coast  of  the  United 
States,  Mexico,  Central  America,  South  America  as  far  south  as  northern  Chile,  and  the  ports  of 
Hawaii  will  be  from  $3.95  to  $4.70  per  ton  of  2,240  pounds.  Having  made  this  detailed  inquiry 
concerning  the  present  and  probable  future  costs  of  delivering  Appalachian  coal  at  the  Atlantic 
and  Gulf  seaboards  and  the  cost  of  shipping  this  coal  to  Caribbean  ports,  it  is  now  possible  to 
consider  whether  and  to  what  extent  the  Puget  Sound  coal  and  that  from  the  eastern  third  of  the 
United  States  will  compete  in  Pacific  markets,  particularly  in  California. 

In  the  earlier  part  of  this  chapter  the  present  prices  at  which  Puget  Sound  coal  was  selling 
in  California  and  Oregon  were  given.  Those  prices  can  doubtless  be  reduced  during  the  coming 
ten  or  fifteen  years.  According  to  the  annual  report  of  the  United  States  Geological  Survey, 
the  averao-e  cost  of  Washington  coal  at  the  mines  was  $1.78  in  1899,  and  for  the  ten  years  ending 
in  1899  the  average  was  $2.16  per  short  ton.  As  the  supply  of  labor  becomes  greater,  and  when 
the  mining  operations  are  conducted  on  a  larger  scale,  the  wages  of  labor  will  be  somewhat  lower 
and  the  totid  cost  of  mining  will  be  less  per  ton;  how  much  it  is  impossible  to  say.  Possibly 
$1.50  per  short  ton  would  be  a  fair  estimate.  An  average  railway  rate  from  the  Washington 
mines  to  the  seaboard  of  §1  a  ton  is  as  low  as  may  be  expected. 

These  estimates  would  make  the  average  cost  of  Washington  coal  at  the  seaboard  $2.50  a 
short  ton  or  $2.80  a  ton  of  2,240  pounds,  except  for  the  coal  from  those  mines  close  to  the  sea- 
board, which  could  sell  their  product  at  a  lower  price  because  of  the  cheap  railway  haul.  As 
was  stated  above,  the  prices  of  coal  in  the  year  1900  in  Puget  Sound  cities  ranged  from  $2.25  to 
$3.25  per  gross  ton.  The  Vancouver  coal  cost  $3.50  per  ton  on  an  average  in  the  British 
Columbia  coaling  stations.  The  ocean  freight  rates  in  1900  were  high,  and  this  accounts  for 
differences  of  $2.50  to  $3  per  ton  then  prevailing  between  the  Puget  Sound  and  San  Francisco 
prices.  It  would  seem  that  $1.50  per  ton  would  ordinarily  be  a  remunerative  ocean  rate  to  ban 
Francisco  and  also  to  Hawaii.  On  the  basis  of  these  estimates  a  possible  future  price  of  $4  a 
gross  ton  for  Washington  coal  in  California  and  Hawaii  may  probably  be  predicted.  British 
Columbia  coal  will  be  obliged  to  pay  the  tariff  of  67  cents  unless  the  existing  law  is  changed. 
These  estimates  are  based  on  too  meager  data  to  make  it  safe  to  accept  them  as  being  closely 
accurate,  but  they  are  probably  approximately  correct;  and,  if  they  are,  they  indicate  that 
Puo-et  Sound  coal  will  be  sold  in  California  and  Hawaii  at  from  $4  to  $5  per  long  ton  by  the 
tim'e  the  isthmian  canal  shall  have  been  opened.  To  Central  and  South  American  ports  the 
freio-ht  rates  would  doubtless  be  50  cents  a  ton  more  than  the  California  and  Hawaiian  points, 
andli  selling  price  of  from  $4.50  to  $5.50  per  ton  of  2,240  pounds  would  need  to  be  predicted.^ 

The  conclusions  to  be  drawn  from  these  estimates  regarding  the  prices  at  which  Appalachian 
and  Puo-et  Sound  coal  can  be  sold  in  the  Pacific  markets  are  that  the  Appalachian  coal  will  doubt- 
less have  an  advantage  over  that  from  Puget  Sound  in  Central  and  South  American  ports,  and 
that  in  California  and  Hawaii  the  two  coal-producing  sections  will  be  active  competitors;  the 
34998°— 12 18 


262  PANAJMA  CAN^U^  TEAFFIC   AND   TOLLS. 

Puget  Sound  mine  owners  will  apparently  be  able  to  sell  at  a  somewhat  lower  price  than  their 
Eastern  rivals  can  afford  to  accept,  but  the  producers  of  the  Eastern  and  Southern  States  will 
have  an  article  of  slightly  better  quality  to  offer.  The  two  chief  reasons  why  the  Appalachian 
coal  can  compete  in  the  markets  so  near  Puget  Sound  are  the  lower  mining  costs  in  the  East  and 
the  exceptionally  cheap  transportation  that  will  be  available  from  the  Appalachian  mines  to  the 
seaboard  and  from  the  seaboard  west,  both  in  steel  barges  and  in  vessels  seeking  the  Pacific  coast 
for  the  eastbound  cargoes  of  lumber,  grain,  sugar,  and  nitrates. 

The  general  conclusions  to  this  investigation  of  the  probable  sources  of  the  future  coal  supply 
for  the  commerce  and  countries  of  the  Pacific,  and  of  this  inquiry  into  the  effects  which  the  isthmian 
canal  will  have  upon  the  coal  trade  of  the  United  States,  are: 

1.  That  the  coal  consumed  for  commercial  and  industrial  uses  on  the  west  coast  of  the  American 
continents,  in  Hawaii,  and  in  the  coaling  stations  of  the  eastern  half  of  the  Pacific  Ocean  will  be 
supplied  in  the  future  mainly  from  the  mines  of  the  United  States  and  Canada,  unless  the  opening 
of  the  Chinese  mines  should  revolutionize  the  coal  trade  of  the  Pacific.  It  is  not  probable  that 
coal  from  the  Orient  or  Austi'alia  will  in  the  future  be  sold  on  this  side  of  the  Pacific.  In  this 
case,  however,  China  is,  as  usual,  the  uncertain  and  indeterminable  factor. 

2.  The  isthmian  canal  will  enlarge  the  export  markets  for  American  coal,  both  by  creating 
a  demand  for  coal  in  Gulf,  West  Indian,  and  Central  American  stations  to  supply  the  steamers 
that  will  be  engaged  in  our  own  and  Europe's  commerce  through  the  canal,  and  also  by^ 
opening  in  the  Pacific  ports  of  the  American  continents  a  coal  market  that  is  now  important 
and  wWch  is  certain  to  grow.  We  shall  secure  the  larger  share  and  probably  nearly  all  of  a  coal 
trade  that  is  now  possessed  by  Great  Britain  and  Australia,  and  the  industrial  progress  that  will 
result  from  the  use  of  the  canal  will  add  to  the  volume  of  that  trade. 

At  the  present  time  the  United  States  occupies  an  unimportant  place  as  an  exporter  of  coal 
to  foreign  countries  other  than  Canada  and  Mexico,  and  while  this  promises  to  become  less  true 
in  the  future  as  the  cost  of  the  British  product  rises,  and  as  the  purchases  of  our  high-grade 
steaming  coal  by  foreign  governments  for  their  navies  occur  more  frequently,  nevertheless 
British  coal  producers  will  continue  to  have  the  great  advantage  which  they  now  possess  of 
of  abundant  facilities  for  shipping  their  coal  to  all  parts  of  the  globe.  The  volume  of  Great 
Britain's  total  imports  is  so  much  larger  than  the  volume  of  her  exports  that  a  large  number  of 
vessels  are  regularly  obliged  to  start  in  ballast  from  the  United  Kingdom  on  their  outbound 
voyages. 

This  enables  the  coal  exporters  of  that  country  to  secure  very  low  rates  to  distant  and 
widely  scattered  foreign  markets,  and  accounts  for  the  fact  that  the  foreign  coal  shipments  from 
Great  Britain  have  averaged  35,000,000  gross  tons  annually  for  the  past  five  j'ears. 

While  the  total  exports  from  the  United  States  will  continue  to  be  more  bulky  than  our 
imports,  there  will  be  a  large  tonnage  movement  westward  through  the  isthmian  canal  of  vessels 
with  part  cargoes  or  in  balast,  and  the  canal  promises  to  develop  an  important  foreign  and 
domestic  market  for  American  coal.  The  ability  to  distribute  the  excellent  coal  of  the  United 
States  extensively  among  the  countries  of  the  Caribbean  Sea  and  the  Pacific  Ocean,  will  be  of 
great  benefit  to  the  industries  and  commerce  of  those  countries,  and  will  redound  to  the  advantage 
of  our  naval,  maritime,  and  industrial  interests. 


Chapter  VII. 
THE  ISTHMIAN  CANAL  AND  THE  IRON  AND  STEEL  INDUSTRIES  OF  THE  ITNITED  STATES. 

The  United  States  holds  first  place  among  the  countries  of  the  world  iu  the  amount  of  coal 
and  iron  ore  mined.  In  1899  three-tenths  of  the  world's  total  output  of  iron  ore  and  32  per  cent 
of  the  total  coal  supply  were  produced  in  the  United  States,  and  the  production  of  both  of  these 
minerals  is  being  increased  rapidly,  not  with  the  prospect  of  exhausting  a  limited  supply  of  raw 
materials,  but  by  drawing  upon  abundant  resources  that  have  but  recently  been  put  under 
requisition. 

In  no  other  country  has  the  increase  in  the  amount  of  iron  ore  mined  been  so  rapid  as  in  the 
United  States.  Great  Britain  is  now  mining  no  more  iron  ore  than  she  did  thirty  years  ago. 
Germany,  including  Luxemberg,  ranks  next  to  our  country  in  the  amount  of  iron  ore  produced, 
and  the  production  has  developed  rapidly  during  recent  years;  but  although  the  German  output 
was  18,000,000  tons  in  1899,  a  large  quantity  of  ore  had  to  be  imported,  and  the  amount  of  pig 
iron  turned  out  b}'  German  furnaces  was  barely  two-thirds  the  pig-iron  product  of  the  United 
States,  whose  productions  of  iron  equaled  13,620,703  tons  of  pig  and  25,000,000  tons  of  ore." 

THE  UNITED  STATES  AS  AN  EXPORTER  OF  IRON  AND  STEEL  PRODUCTS. 

Iron  and  steel  and  their  manufactures  now  constitute  the  fourth  largest  general  class  of  exports 
from  the  United  States,  breadstuffs,  rawcotton,andprovisionsbeing  the  only  categories  having  a 
greater  value.    For  the  years  ending  June  30, 1900  and  1903,  the  values  of  these  commodities  were — 


Raw  cotton 241. 832, 737 

Provisions,  meat,  and  dairy  products 18'l,431,716 

Iron  and  steel,  and  manufactures  of • I    121,858,344 


$221,242,285 
316,180,429 
179,839,714 
96, 642,  467 


The  growth  in  the  exportation  of  iron  and  steel  in  crude  and  manufactured  form  was  very 
rapid  from  1896  to  1900;  since  then  the  great  demand  at  home  has  temporarily  cut  down  foreign 
sales.  In  1896  the  total  value  was  but  slightly  more  than  one-third  of  that  of  1900.  The  trade 
is  widely  distributed,  the  most  promising  markets  being  in  North  and  South  America  and  the 
Orient.  Of  steel  bars  and  rails  British  North  America,  Japan,  and  Asiatic  countries  are  large 
buyers.  Builders'  hardware,  saws,  and  tools  found  45  per  cent  of  their  market  in  Europe  in 
1900,  but  Australia  was  also  a  large  purchaser.  Wire  is  very  widely  distributed.  Electrical 
machinery,  printing  presses,  and  pumping  machinery  have  been  sold  mainly  in  Europe,  and  also 
in  the  colonies  of  European  nations.  Our  best  foreign  markets  for  locomotives  have  been  Japan, 
Canada,  Mexico,  Brazil,  and  Russia.  American  producers  are  finding  their  way  into  the  markets 
of  all  parts  of  the  world. 

Among  the  letters  received  from  the  manufacturers  of  iron  and  steel  was  one  from  a  firm 
whose  plant  is  on  the  Atlantic  seaboard.     This  firm  reported,  among  other  things: 

At  present  25  to  30  per  cent  of  our  products  are  exported.  We  expect,  however,  by  reason  of  our  location  at 
tide  water,  to  constantly  increase  this  proportion  and  ultimately  export  from  .50  to  75  per  cent. 

In  the  year  1899  the  capacity  of  this  firm  was  about  $10,000,000  worth  of  products  per  annum. 
At  the  time  this  letter  was  written  the  firm  was  filling  a  foreign  order  for  70,000  tons  of  rails 
for  the  trans-Siberian  railway,  and  also  an  order  for  30,000  tons  of  rails  received  from  the 
government  of  Victoria,  Australia.  A  Philadelphia  firm  shipped  two  full  vessel  cargoes  of  loco- 
motives to  China  and  Siberia  in  1898,  one  full  cargo  in  1899,  and  another  shipload  in  1900,  156  in 
all,  sent  out  in  two  years. 

oin  1902  there  were  35,554,135  long  tons  of  iron  ore  mined  in  the  United  States,  from  which  17,821,307  tons  of 
sig  iron  were  made. 


264  PANMLl  C'ANAI.  TRAFFIC  AND   TOLLS. 

A  firm  in  the  eastern  part  of  Pennsj'lvania  reported: 

We  shipped  3,000  tons  of  plates  to  Australia  early  this  year  (1900),  and  similar  quantities  to  various  points, 
especially  to  China  and  Japan.  *  *  *  We  shipped  many  tliousands  of  tons  to  the  Pacific  coast,  a  part  of  which 
goes  to  New  Orleans  and  thence  overland.     Some  goes  by  way  of  Panama  and  some  around  Cape  Horn. 

A  firm  manufacturing  $750,000  worth  of  files  and  rasps,  one-third  of  which  is  sold  outside 
of  the  United  States,  reported: 

We  have  lately  developed  a  constantly  growing  business  in  all  the  Eastern  countries,  Japan,  China,  and  the 
Straits  Settlements.     We  are  also  selling  to  some  extent  on  the  west  coast  of  South  America. 

One  of  the  largest  manufacturers  of  bridge  material  in  the  United  States  reports: 

Business  is  developing  throughout  the  world,  having  sold  bridges  for  many  years  to  South  American  countries, 
and  lately  to  China,  Japan,  and  Russia.  Probably  10  per  cent  of  our  present  business  is  for  export,  with  every 
evidence  of  large  increase  in  the  future. 

Examples  of  this  nature  might  be  given  in  large  number.  The  foregoing,  however,  are 
sufficient  to  illustrate  the  truth  of  the  general  proposition  that  the  present  exportation  of  iron 
and  steel  products  from  the  United  States,  although  large,  is  but  the  beginning  of  a  rapidly 
increasing  business  that  is  certain  to  assume  great  proportions.  The  great  iron  and  steel  manu- 
facturers of  Pittsburg,  Cleveland,  and  Birmingham  expect  this,  and  a  visit  to  their  great  estab- 
lishments and  an  inspection  of  their  methods  of  manufacturing  and  di.stributing  their  products 
will  convince  any  observer  that  the  feelings  of  these  manufacturers  are  well  founded. 

THE    CONDITIONS   OF    PRESENT    COMPETITION    OF   THE    UNITED    STATES   WITH    EUROPE. 

The  chief  competitors  that  the  United  States  must  meet  in  exporting  iron  and  .steel  manufac- 
tures are  Great  Britain,  Germany,  and  Belgium.  In  selling  for  delivery  in  Europe  we  are  at  a 
di.sadvantage  as  regards  costs  of  transportation,  and  must  expect  to  overcome  the  handicap,  if  at 
all,  by  being  more  inventive  and  by  introducing  more  economical  processes  of  production  than 
are  emplovcd  by  our  rivals;  that  is,  by  making  a  better  article  at  a  lower  cost  of  manufacture. 

That  Me  are  now  able  to  sell  many  manufactures  of  iron  and  steel  and  even  pig  iron  in  Europe 
shows  that  great  progress  has  been  made  in  the  United  States  in  reducing  the  expenses  of  pro- 
duction; indeed,  we  are  able  to  enter  all  markets  where  the  competitor  does  not  have  a  decided 
advantage  in  lower  costs  of  transportation.  The  cost  of  manufacturing  iron  and  steel  is  lower 
in  most  of  the  centers  of  production  in  this  country  than  in  Eiu'ope,  and  the  expenses  are  certain 
to  decrease  during  the  coming  ten  or  fifteen  years.  The  continuation  of  the  pre.sent  rapid  growth 
in  our  foreign  .sales  of  iron  and  steel  products  is  essentially  a  question  of  securing  cheaper 
transportation,  and  especially  to  South  American  and  trans-Pacific  countries. 

Most  foreign  countries,  however,  can  be  reached  more  economically  under  existing  condi- 
tions by  European  producers  than  by  American.  Not  only  the  west  coast  of  South  America,  but 
also  the  east  side  of  that  continent,  south  of  the  equator,  can  at  present  be  reached  more  cheaply 
from  western  Europe  than  from  the  iron-producing  sections  of  the  United  States.  The  Suez 
Canal  has  brought  Europe  nearer  than  the  United  States  is  to  the  East  Indies,  Australia,  China, 
Japan,  and  oriental  countries  generally;  and  until  the  American  canal  route  becomes  available, 
American  manufacturers  and  exporters  of  iron  and  steel  and  other  articles,  will  find  their  lower 
costs  of  production  largely  ofl'set  by  the  greater  expenses  of  transporting  their  commodities  to 
these  promising  foreign  markets. 

AMERICAN    IRON    AND    STEEL    TRADE    WITH    PACIFIC    COUNTRIES. 

The  i.sthmian  canal  will  afi^ect  the  iron  and  steel  industries  of  the  United  States  chiefly  by 
lessening  the  time  and  expense  of  reaching  the  Pacific  markets  of  our  own  and  foreign  countries. 
These  are  the  markets  in  which  Europe  and  America  will  strive  for  supremacy,  and  the  prize  is 
worthy  of  zealous  effort.  Though  now  at  a  di.sadvantage  in  the  competitive  struggle  for  this 
trade,  the  American  producers  have  already  secured  a  desirable  trade.  The  direct  exports  of  our 
iron  and  steel  products  to  foreign  Pacific  countries  in  1900  were  as  follows: 

Chinese  Empire •. S822,  074 

Japan 5,  460, 205 

British  Australia 7,  386,  3.58 

Chile 655,  935 

Bolivia 23, 006 

Ecuador 292, 314 

Peru 495,411 

Total 15,135,303 


PANAilA  CANAL  TKAFFIC  AND   TOLLS.  265 

The  principal  exports  from  the  United  States  to  Pacific  countries  are  and  will  be  breadstufF.s, 
lumber,  raw  and  manufactured  cotton,  petroleum,  and  iron  and  steel  products.  The  exportation 
of  the  last  three  of  these  five  classes  of  commodities  will  be  facilitated  by  the  canal;  and  in  the 
case  of  iron  and  t^eel  products,  which  have  to  meet  a  specially  strong  competition  from  Europe, 
the  isthmian  waterway  will  be  of  great  assistance  to  American  exporters.  The  table  indicates 
that  the  canal's  influence  will  be  exerted  where  important  results  are  possible.  The  total  exports 
of  iron  and  steel  products  from  the  United  States  in  the  year  ending  June  30,  1900,  amounted  to 
$121,858,344,  and  the  exports  of  those  commodities  to  Pacific  countries  comprised  one-eighth  of 
the  total. 

THE    MANNER    IN    WHICH    THE    ISTHSHAN    CANAL   WILL   AFFECT    THE    AMERICAN    IRON   AND    STEEL 
INDUSTRIES   AS   A    WHOLE    AND   THOSE   OF   THE    SOUTHERN    STATES   IN    PARTICULAR. 

Iron  and  steel  and  the  manufactures  of  them  being  heavy  commodities,  with  a  relatively  low 
value  per  unit  of  weight,  they  constitute  a  class  of  traflic  for  which  water  transportation  is 
especially  well  adapted.  They  will  uatui'ally  seek  the  canal  route  to  Pacific  markets.  The  future 
exports  of  iron  and  steel  will  be  sent  out  both  from  the  Southern  States  and  from  those  north 
of  the  Ohio  and  Potomac  rivei's.  Of  the  iron  ore  mined  in  1899,  19  per  cent,  or  -1,800,000  tons, 
were  taken  from  the  mines  of  the  Southern  States;  72. fi  per  cent  came  from  the  Lake  Superior 
region,  and  8.-1:  per  cent  from  other  States. 

The  Southern  States  have  special  advantages  for  the  manufacture  and  exportation  of  pig  iron 
because  of  the  juxtaposition  of  the  coal,  iron  ore,  and  limestone,  and  the  comparatively  short 
distance  of  the  furnaces  from  the  seaboard.  In  shipping  pig  and  other  forms  of  iron  to  our 
Western  States,  the  Hawaiian  Islands,  and  the  Pacific  coast  of  Central  and  South  America,  by 
way  of  an  isthmian  canal,  the  Southern  producers  and  the  Gulf  seaports  will  have  the  advantage 
of  being  nearer  the  canal  than  the  producers  in  other  sections  of  the  L^nited  States  will  be,  and 
this  will  probably  give  the  Southern  mines,  furnaces,  and  mills  a  large  share  of  the  iron  and  steel 
export  trade  to  Pacific  markets.  The  Northern  producer  will,  however,  by  no  means  be  debarred 
from  successful  competition,  because  the  North  Atlantic  ports  will  have  a  greater  volume  of 
shipping  and  trade  with  the  East  than  the  Southern  ports  will  have,  and  consequently  more 
abundant  facilities  for  dispatching  their  exports. 

The  iron  and  steel  manufacturers  of  this  country  anticipate  a  large  foreign  trade  with  Pacific 
countries.     An  ironmaster  of  Birmingham,  Ala.,  states: 

The  canal  -n-ould  open  to  this  district  a  demand  for  pig  iron  from  the  Pacific  coast,  including  South  America,  now 
filled  from  England  because  of  the  absence  of  freight  communications  from  Birmingham,  which  could  otherwise 
supply  it  more  cheaply.  It  would  open  up  a  demand  for  pig  iron  in  Honolulu,  Japan,  China,  and  Australia,  which 
would  then  be  supplied  to  them  more  cheaply  than  from  European  markets.  It  would  open  up  a  demand  in  the 
last-named  countries  for  cast-iron  pipe,  which  at  present  is  largely  supplied  from  Belgium,  which  could  then  be 
more  cheaply  supplied  from  this  district. 

In  Pittsburg  the  iron  and  steel  manufacturers,  who  already  ship  extensively  to  Pacific  markets, 
believe  that  the  present  business  could  be  much  inci'eased  by  the  use  of  an  i.sthmian  canal,  and  a 
special  report  prepared  for  the  Canal  Commission  by  the  chamber  of  commerce  of  that  city  lays 
stress  upon  the  possibility  of  exporting  from  the  section  of  which  Pittsburg  is  the  industrial 
center  large  quantities  not  onh'  of  iron  and  steel  products  but  also  of  coal,  glass,  petroleum,  and 
pottery.  In  Cleveland,  Ohio,  one  firm  engaged  in  the  manufacture  of  relatively  high-priced  iron 
and  steel  products  in  that  city  and  elsewhere  reported  in  1900  that  it  was  shipping  annually  to 
foreign  Pacific  markets  77,000  net  tons,  and  was  doing  a  large  business  with  the  west  coast  of  the 
United  States,  the  amount  of  which  was  withheld  for  special  reasons.  Another  firm  having 
headquarters  in  Cleveland  and  doing  an  annual  business  of  over  121,000,000  in  mining  iron  and 
coal  and  manufacturing  pig  iron  informed  the  Canal  Commission  that — 

The  opening  of  a  canal  across  the  American  isthmus  would  prove  of  very  great  beneCt  to  the  iron  and  steel 
industries  to  whom  we  sell  our  raw  materials — hence  of  great  benefit  to  us.  The  development  of  trade  in  the  Orient 
promises  a  large  volume  of  business  to  the  iron  and  steel  industries  of  the  world.  With  a  canal  the  United  States 
should,  and  in  our  judgment  would,  control  this  trade. 

From  the  reports  prepared  for  the  Commission  by  the  commercial  organizations  of  Pittsburg, 
Cleveland,  and  Birmingham,  it  is  beHeved  that  these  statements  of  large  iron  and  steel  manufac- 
turers in  these  cities,  represent  the  views  held  by  practically  all  of  those  interested  in  the  iron 
and  st«el  industries  of  the  United  States. 


Chapter  VITI. 

the  canal  and  the  shipbuilding  and  mahitime  interests  of  the  united 

STATES. 

The  shipbuilding  industry  and  the  merchant  marine  are  of  great  importance  to  the  industrial, 
commercial,  and  naval  welfare  of  our  couutr}-.  There  are  few  industries  of  equal  magnitude  that 
require  a  larger  number  of  auxiliary  business  activities,  that  employ  so  large  a  force  of  skilled 
labor,  and  that  do  more  to  call  forth  inventive  genius.  The  permanent  strength  and  efficiency  of 
our  merchant  marine  and  our  Navy  are  dependent  upon  our  having  well-equipped  yards,  owned 
by  trained  builders  with  inventive  capacity.  However  much  men  may  differ  as  to  the  policy  to 
be  adopted  for  building  up  our  merchant  marine,  they  are  agreed  as  to  the  necessity  for  having 
a  well-developed  shipbuilding  industry. 

The  desirability  of  having  a  large  merchant  marine  under  the  American  flag  is  also  generally 
acknowledged.  "The  more  facilities  the  more  business."  The  existence  of  a  greater  number  of 
vessels  connecting  our  leading  seaports  with  various  parts  of  the  world  would  be  of  assistance  to 
us  in  developing  our  foreign  trade.  It  is  possible  to  secure  a  moderate  amount  of  trade  with  a 
distant  section  of  the  world  by  depending  entirely  upon  chartered  vessels,  but  much  more  can  be 
accomplished  with  the  aid  of  regular  lines  of  ships.  The  regular  liners  are  needed,  not  only  for 
the  passenger  and  mail  services  between  our  own  and  foreign  countries,  but  also  for  carrying  on 
trade  at  scattered  points  where  the  business  is  not  large  enough  to  warrant  the  use  of  chartered 
steamers.  In  building  up  our  trade  with  the  Far  East,  and  with  South  America,  we  need  lines 
of  vessels  as  well  as  cnartered  ships.     Neither  agency  is  sufficient  by  itself. 

The  value  of  a  large  merchant  marine  as  a  training  school  for  the  Navy,  and  as  a  source 
from  which  to  draw  both  men  and  vessels  when  a  sudden  expansion  of  the  naval  fleet  becomes 
necessary,  is  a  fact  recognized  in  the  naval  and  maritime  policy  of  many  countries. 

THE    CANAL   AND    SHIPBtTTLDING. 

The  isthmian  canal  will  operate  as  has  the  Suez  Canal,  and  hasten  the  change  from  sail  to 
steam  power  in  ocean  commerce.  By  doing  this  the  isthmian  waterway  will  modify  both  the 
shipbuilding  and  the  ship-operating  industries.  Inasmuch  as  few,  if  any,  steamers  will  be  con- 
structed with  wooden  hulls,  the  canal  will  necessitate  a  larger  and  earlier  reorganization  than 
would  otherwise  occur  in  many  of  the  shipbuilding  plants  now  employed  in  constructing  wooden 
vessels.  This  change  from  wooden  to  steel  vessels  may  be  a  burden  to  some  builders,  but  the 
country  as  a  whole  will  be  benefited. 

One  sure  result  of  the  opening  of  an  isthmian  waterway  will  be  a  larger  coasting  trade  between 
our  two  seaboards.  A  larger  coasting  fleet  will  be  required,  and  the  vessels  for  this  fleet  must  be 
built  in  American  yards.  The  coasting  fleet  engaged  in  traffic  through  a  canal  will  consist  mainly, 
if  not  entirely,  of  steamers."  A  part  of  our  present  coasting  vessels  will  doubtless  use  the  canal, 
but  it  is  probable  that  a  large  number  of  ships  will  be  built  especially  for  the  long-distance  traffic 
that  will  be  carried  on  through  the  canal.  Most  of  them  will  be  comparatively  large  ships,  and 
will  be  freight  vessels  of  the  most  modern  design.  The  use  of  steel  barges  on  the  Ohio,  Missis- 
sippi, Warrior,  and  other  rivers  promises  to  enlarge  the  demand  for  barges,  and  they  must  be 
constructed  in  American  yards.  Likewise  an  increase  in  the  exports  of  iron  and  steel  products 
will  necessitate  the  handling  of  more  ore  on  the  Great  Lakes,  and  thus  add  to  the  tonnage  of 
vessels  constructed. 

In  securing  data  for  the  discussion  of  the  effect  which  the  canal  would  have  on  the  shipbuild- 
ing and  maritime  interests  of  the  United  States,  a  circular  letter  containing  six  inquiries  was  sent 
to  the  American  firms  building  and  operating  ships.  Replies  were  received  from  fort}'  of  the 
persons  addressed,  and  in  most  of  tne  communications  received  each  question  was  carefully 
answered.  One  of  the  interrogatories  was:  Will  the  opening  of  an  isthmian  canal  and  the 
development  of  its  traffic  stimulate  American  shipbuilding  i  Will  the  larger  demand  for  coasting 
vessels  so  increase  the  output  of  American  j-ards  as  to  enable  shipbuilders  to  construct  all  ships 
more  economically,  and  thus  to  compete  successfully  with  foreign  builders  in  the  construction  of 
vessels  for  the  foreign  trade  ? 

"Consult  following  chapter  on  "The  use  of  the  canal  by  sailing  vessels." 
266 


PANAMA  CANAL  TRAFFIC  AND   TOLLS.  267 

Nearlj-  all  the  responses  to  this  query  were  in  the  aflBrmative.  The  general  character  of  the 
answers  may  be  illustrated  by  quoting  from  two  of  the  letters;  one  received  from  an  eastern 
shipbuilder  and  the  other  from  a  west  coast  shipo-»»ner.     The  statement  of  the  shipbuilder  was: 

In  my  judgment  the  opening  of  the  isthmian  canal  and  the  development  of  its  traffic  would  stimulate  American 
shipbuilding,  to  the  extent  of  an  increased  demand  for  vessels  to  be  used  in  trade  affected  by  said  canal.  As  a  rule 
increased  demand  develops  increased  sources  of  supply,  and  the  cost  of  product  is  invariably  reduced  in  proportion 
of  increased  business  to  fixed  expenses  of  any  manufacturing  establishment,  and  therefore  the  canal  would  in  ttds 
case  tend  to  enable  shipbuilders  to  construct  ships  more  economically  and  more  surely  to  compete  with  foreign 
builders. 

The  response  of  the  shipowner  was: 

The  increased  facility  afforded  for  the  transfer  of  American  vessels  from  ocean  to  ocean  in  trading  between 
American  ports  will  call  for  an  increased  number  of  vessels,  which  undoubtedly  will  result  in  new  shipyards  being 
established  (boih  for  the  building  and  repairing  of  our  vessels),  which  could  be  called  upon  when  needed  for  the 
construction  of  vessels  to  carry  on  our  foreign  import  and  export  trade.  We  already  know  that  structural  steel  has 
been  produced  in  the  United  States  cheaper  than  in  any  other  part  of  the  world,  owing  to  the  almost  inexhaustible 
beds  of  iron  ore  in  the  region  of  the  Great  Lakes,  as  well  as  in  other  sections,  and  the  skill  and  economy  with  which 
it  is  mined  and  worked  When  we  combine  this  advantage  with  the  facility  which  will  be  developed  by  a  large 
increase  in  our  capacity  for  building  roasting  vessels,  we  see  no  reason  why  in  the  future  ocean  carrying  vessels  of 
the  best  class  may  not  be  built  as  cheaply  here,  if  not  already  done,  as  in  any  other  country. 

The  cost  of  building  ships  in  American  yards  is  generally  admitted  to  be  higher  than  in 
Europe  in  spite  of  the  recent  introduction  in  our  yards  of  economical  processes  of  handling 
material  and  doing  work.  Most  of  the  large  American  shipyards  are  new  and  are  equipped  with 
the  most  approved  labor-saving  machinery.  The  labor  costs  are  said  to  be  higher  in  American 
than  in  foreion  yards,  but  whether  the  cost  of  labor  per  unit  of  work  done  is  greater  in  the  United 
States  is  harS  to  determine.  In  most  lines  of  iron  and  steel  manufactures  the  labor  co,sts  of  pro- 
duction in  the  United  States  can  hardly  be  higher  than  in  Europe.  For  many  commodities  the 
labor  outlay  is  undoubtedly  less,  and  it  is  not  probable  that  the  labor  costs  of  building  ships  in 
the  United  States  will  continue  permanently  higher  than  in  Europe.  It  is,  however,  not  to  be 
expected  that  American  builders  can  construct  the  small  merchant  tonnage  now  being  built  by 
them  at  as  low  a  cost  per  ton  of  shipping  as  can  the  foreign  builders.  Ships  are  built  by  retail 
in  this  country  and  by  the  wholesale  abroad.  "  The  British  shipbuilders  build  many  vessels  from 
the  same  plans,  buying  or  making  not  onlj^  duplicate  or  triplicate  parts,  shapes,  machines,  etc.,  but 
like  parts  by  the  dozen  or  score."" 

The  tonnage  now  being  constructed  by  the  American  builders  is  nearly  all  for  the  coastwise 
and  inland  comtnerce,  from  which  foreign-built  vessels  are  excluded — that  is.  for  the  home  market. 
It  is,  however,  probable  that  the  American  shipbuilding  industry  will  eventually  repeat  the  history 
which  other  iron  and  steel  manufactures  have  had  during  the  past  ten  years.  From  importers  of 
large  quantities  of  iron  and  steel  products  we  have  become  large  exporters  of  them,  and  are  now 
rapidly  finding  our  way  into  new  markets.  The  recent  growth  of  the  shipyards  of  the  United 
States' has  been  checked  for  the  time  being,  and  our  yards  are  suffering  from  the  pre.sent  dull 
period  in  the  shipping  business.  The  increase  which  will  occur  in  our  domestic  water  commerce 
during  the  coming  decade,  and  particularly  after  the  isthmian  canal  shall  have  been  opened,  will 
enlarge  the  tonnage  built  in  our  yards,  tend  to  lower  the  costs  of  construction  and  to  induce 
American  builders  to  seek  f  oreign'markets  for  their  ships.  The  increase  in  the  number  of  vessels 
built  will  be  accumulatively  beneficial  to  American  builders.  A  larger  American  fleet  means  more 
repairing  in  the  tfnited  States,  and  this  will  be  a  valuable  aid  to  our  shipyards. 

THE    OWNERSHIP   OF   OCEAN    VESSELS   BY   EXPORTERS. 

During  the  investigation  of  the  relation  of  the  canal  to  the  maritime  interests  of  the  United 
States,  some  gentlemen  well  versed  in  maritime  matters,  expressed  the  opinion  that  a  considerable 
tonnage  was  to  be  added  to  our  merchant  marine  engaged  in  foreign  commerce,  by  the  purchase 
and  operation  of  ves.sels  by  the  large  American  manufacturing  concerns,  which  are  now  rapidly 
developing  a  heavy  foreign  trade.  Manufacturing  for  export  is  already  largely  concentrated  in 
the  hands"  of  large  combinations  of  producers,  and  some  of  these  combinations  now  find  their 
foreign  trade  so  important  that  they  are  considering  the  desirability  of  providing  themselves  with 
ocean  vessels. 

For  reasons  stated  in  another  part  of  this  report,  it  is  believed  that  the  exportation  of  coal 
from  the  United  States  is  going  to  increase  and  that  it  will  assume  large  proportions  after  the 
canal  is  opened.  The  exportation  of  iron  and  steel  products  from  the  United  States  is  growing 
and  is  certain  to  increase.  The  large  corporations  engaged  in  mining  and  in  the  manufacture  of 
iron  and  steel,  as  well  as  those  in  the  lumbering  business,  will  doubtless  tind  that  provision  must 

"Report  of  Commissioner  o£  Navigation,  1900,  page  33. 


268  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

be  made  by  themselves  for  handling  their  water-borne  foreign  trade.  To  a  considerable  extent 
the  vessels  which  carry  the  exported  oil  are  owned  by  the  manufacturers  of  the  oil.  A  part  of 
this  exported  lumber  is  handled  by  the  men  who  manufacture  the  commodity.  The  heavy  pur- 
chases of  European  vessels  by  American  capitalists  during  the  spring  of  1901  was  doubtless  in 
part  for  the  purpose  of  securing  better  facilities  for  handling  the  export  trade.  The  purchasers 
are  also  largely  engaged  in  manufacturing  for  export. 

THE    CANAL   AND   THE   AMERICAN   MERCHANT   MARINE. 

The  ownership  and  operation  of  ocean  vessels  by  the  large  industrial  firms  as  a  part  of  their 
business,  which  has  now  in  many  cases  come  to  include  the  entire  process  of  obtaining  the  raw 
materials,  converting  them  into  usable  commodities,  and  placing  them  in  the  hands  of  the  con- 
sumer, whether  foreign  or  domestic,  will,  to  some  extent,  solve  the  ciuestion  of  our  securing  a 
larger  merchant  marine  owned  b}-  Americans.  Whether  these  vessels  owned  by  American  pro- 
ducers will  be  sailed  under  our  flag,  or  under  that  of  some  foreign  nation,  will  be  determined  by 
forces  over  which  the  isthmian  canal  will  have  but  slight  influence. 

Some  of  the  vessels  employed  in  the  commerce  between  our  Eastern  seaboard  and  the  trans- 
Pacific  coimtries  will  doubtless  desire  to  participate  in  the  interoceanic  coasting  trade  of  the 
United  States,  and  in  order  to  do  so  they^  will  need  to  have  the  American  registry.  The  action 
of  Congress  in  restricting  the  commerce  of  Porto  Rico  and  Hawaii  with  the  United  States  to 
American  ships  has  been  followed  by  similar  legislation  regarding  our  trade  with  the  Philippines, 
which,  after  July  1,  1906,  will  also  be  limited  to  the  vessels  flying  our  flag.  It  is  probable  that 
the  restriction  of  our  Philippine  commerce  to  American  ships  may  cause  a  larger  share  of  the 
commerce  of  our  Atlantic  and  Gulf  ports  with  Japan  and  China  to  be  carried  in  American  vessels, 
because  such  ships  would  be  able  to  participate  in  both  our  Philippine  and  foreign  trade. 

Any  benefit  conferred  upon  our  shipbuilding  industry  will  indirectly  aid  in  the  enlargement 
of  the  tonnage  of  American  vessels  engaged  in  the  foreign  trade  of  the  United  States.  If  the 
American  purchaser  could  secure  vessels  at  home  as  cheaply  as  in  foi'eign  yards,  one  of  the 
present  reasons  for  registering  his  ships  under  the  flag  of  some  other  nation  would  be  removed. 
The  future  growth  of  the  merchant  marine  under  the  flag  of  the  United  States  will  depend  on 
numerous  factors,  some  economic  and  some  political.  The  construction  of  the  isthmian  canal 
will  apparently  affect  that  growth  favorably. 


Chapter  IX. 
CONCERNING  THE  USE  OF  AN  ISTHMIAN   CANAL  BY   SATLING  VESSELS. 

In  order  to  reach  intelligent  conclusions  regarding  the  use  which  sailing  vessels  will  make  of 
a  canal,  there  are  at  least  three  questions  that  must  receive  consideration.  The  first  general 
question  is  concerning  the  place  which  those  vessels  now  hold  in  the  commerce  of  the  world  and 
of  the  United  States;  the  rate  at  which  steam  has  been  displacing  sail  tonnage  in  our  own  and 
foreign  shipping  during  the  past  twentj'-tive  years,  and  the  commercial  position  which  the  sailing 
vessel  will  occup}-  fifteen  years  hence,  should  the  present  tendency  to  substitute  the  engine  for 
the  sail  continue  to  prevail.  Another  subject  meriting  careful  inquiry  is  whether  there  are 
special  classes  of  traffic,  such  as  lumber,  grain,  nitrates,  and  unrefined  sugar,  which  have  found 
the  steamer  the  more  economical  carrier.  If  there  are  commodities  that  can  be  freighted  more 
cheaply  by  sail  than  by  steam,  are  they  articles  that  would  naturally  be  carried  through  the 
canal  r  The  third  general  question  is  whether  an  isthmian  canal,  either  in  Nicaragua  or  at  Panama, 
is  a  waterway  adapted  to  navigation  by  sailing  vessels.  Are  the  conditions  of  winds  and  currents 
that  prevail  at  the  approaches  to  the  canal  such  as  to  enable  sail  craft  to  use  the  waterway;  and 
if  the  route  is  possible  for  the  sailing  vessel,  will  the  economies  resulting  from  its  use  be  sufficient 
to  induce  the  owners  of  such  ships  to  adopt  the  transisthmian  routed  In  the  discussion  that 
follows  these  three  general  questions  will  be  considered  in  the  above  order  of  statement. 

THE  PLACE  OF  THE  SAXLING  VESSEL  IN  THE  COMMERCE  OF  THE  WORLD  AND  OF  THE  tWITED  STATES. 

That  the  sailing  vessel  is  giving  place  to  the  steamer,  both  on  the  high  seas  and  in  domestic 
waters,  is  a  well-known  fact,  to  the  significance  of  which  attention  has  been  drawn  on  many 
occasions.  The  United  States,  however,  having  certain  obvious  advantages  over  other  nations 
for  the  construction  of  wooden  ships,  has  given  up  the  use  of  sails  more  slowly  than  any  other 
important  maritime  nation,  with  the  possible  exception  of  Norway.  In  the  enormous  traffic  of 
our  Great  Lakes  we  have  come  to  use  steam  almost  exclusively,  but  this  is  not  the  case  with  our 
seagoing  marine. 

The  report  of  the  United  States  Commissioner  of  Navigation  for  1899  contains  tables  show- 
ing the  extent  to  which  the  world's  seagoing  sail  tonnage  has  declined  during  the  last  quarter  of 
a  centurj-,  and  the  increase  which  has  taken  place  during  the  same  period  in  the  world's  sea- 
going tonnage.  The  tables  are  taken  from  the  records  of  the  Bureau  Veritas.  The  table 
regarding  the  sail  tonnage  is  as  follows: 

Seagoing  sail  tonnage. 


Country. 

1873-74. 

1878-79. 

188&-89. 

1898-99. 

Decrease 

from  1874 

to  1899. 

5,320,089 
2,132,838 
1,137,177 
1,126,032 
893, 952 
768,059 
2,807,689 

5,596,018 

2,075,832 

1,374,824 

963,625 

914,674 

595,933 

2,796,524 

4,215,634 

1,913,090 

1,328,296 

718,889 

737,028 

352,418 

2,370,9W 

2,910,555 

1,285,869 

1,144,482 

463,767 

535,937 

279, 412 

2,073,757 

Per  cent. 
45 

40 

Italy                                                                                 

59 

40 

64 

26 

14,185,836 

14,317,430 

11, 636, 289 

8,693,769 

40 

The  world's  seagoing  tonnage  declined  40  per  cent  during  the  twenty-five  years  from  1874  to 
1899,  and  the  decline  in  the  tonnage  of  the  sailing  vessels  in  our  merchant  marine  has  proceeded 
pari  passu  with  the  change  occurring  in  the  world's  marine.  This  table,  however,  presents  only 
one  side  of  the  change  that  has  been  taking  place.  When  we  come  to  study  the  figures  of  the 
growth  of  steam  tonnage,  we  find  that  the  United  States  has  fallen  far  behind  her  rivals.  The 
following  table  presents  the  gross  tonnage  of  the  seagoing  steamships  of  over  100  gross  tons 


270 


PANiUIA  CANAI.   TRiiFFlC   AND   TOLLS. 


operated  under  the  flags  of  the  various  maritime  nations  of  the  world.  For  purposes  of  com- 
parison there  are  appended  to  the  table  the  statistics  of  the  tonnage  of  the  steamships  engaged  in 
foreign  trade  under  the  American  flag: 

Seagoing  steam  tonnage  of  the  irorld. 


Country. 

1873-74. 

1878-79. 

1888-89. 

1898-99. 

Increase 

Tonnage. 

Per  cent. 

Tonnage. 

Per  cent. 

Tonnage. 

Per  cent. 

Tonnage. 

Per  cent. 

1898-99. 

2,624,431 
483,040 
316.765 
204,894 
138,675 
85,045 
72,753 
67,522 
41,602 

60.4 
11.2 
7.4 
4.8 
3.3 
1.9 
1.7 
1.6 
.9 

3,465,187 
609,101 
335, 219 
253,667 
152,708 

84,421 
116, 149 
104,702 

53,331 

62.4 
10.8 
5.9 
4.5 
2.7 
1.5 
2.0 
1.8 
.9 

6,873,662 
536,345 
752,028 
662,331 
395,685 
276,326 
197,  748 
163,656 
160,658 
115, 088 
913,720 

62.3 
4.8 
6.8 
5.9 
3.5 
2.5 
1.8 
1.5 
1.4 
1.0 
8.3 

10,993,111 
ElO,  800 
952,  682 

1,626,521 
620, 847 
420,880 
363,200 
368,415 
628,493 
439, 509 

1,773,674 

58.6 
4.2 
5.1 
.S.3 
2.7 
2.2 
1.9 
1.8 
3.3 
2.3 
9.5 

Per  cent. 
311 
68 
200 
693 
276 
395 
399 
430 
1,410 

France 

Spain 

Italy 

Holland 

293,466 

6.8 

420, 690 

7.6 

504 

Total 

4,328,193 

100.0 

5,595,175 

100.0 

11,045,937 

100.0 

_ 

1 

Atlantic  coast 

165, 280 
20,451 

141, 145 
20, 010 

129,961 
57,144 

227,731 
131, 953 

38 
545 

Pacific  coast 

The  world's  seagoing  steam  tonnage  has  grown  from  4,328,193  gross  tons  to  18,887,132  gross 
tons,  an  increa.se  of  336  per  cent,  during  the  twenty-five  years.  Our  seagoing  steam  tonnage, 
however,  has  risen  only  68  per  cent,  the  percentage  of  increase  being  only  one-third  that  of 
France,  the  nation  next  above  us,  who  are  the  lowest  on  the  list.  While  we  have  been  raising 
our  maritime  .steam  tonnage  from  483,010  gross  tons  in  1874  to  810,800  in  1899,  Great  Britain 
has  lifted  her  figures  from  2,621,431  gross  tons  to  10,993,111,  an  increa.se  of  311  per  cent  over  a 
tonnage  that  had  already  reached  large  proportions  at  the  beginning  of  the  period. 

With  the  causes  of  our  decline  in  the  ocean-carrying  trade  we  are  not  here  concerned.  It  is 
evident  that  the  decline  in  our  .seagoing  sail  tonnage  presents  no  exception  to  the  tendency  of  all 
countries  to  substitute  steam  for  sails.  Should  our  maritime  sail  tonnage  decline  on\j  40  per 
cent  during  the  coming  twenty-five  years,  it  will  be  reduced  to  771,515  gross  tons;  but  there  are 
strong  reasons  for  thinking  that  the  substitution  of  the  engine  for  the  .sail  will  proceed  more 
rapidly  in  the  future  than  it  has  in  the  past.  As  the  sailing  vessels  wear  out  they  will  be 
replaced  by  steamers.  The  American  merchant  marine  engaged  in  the  foreign  trade  ha.s  declined 
to  small  proportions,  but  there  is  no  doubt  that  economic  and  political  conditions  favorable  to 
the  restoration  of  our  carrying  trade  are  rapidly  developing,  and  that  our  new  marine  must 
almost  certainly  consist  of  steamships.  The  statistics  of  the  tonnage  of  sailing  vessels  and 
steamers  constructed  in  the  United  States,  during  the  five  years  from  1894  to  1899,  tend  to  confirm 
this  view.  During  these  five  years  296,933  gross  tons  of  sailing  vessels  were  built  in  American 
yards  and  570,831  tons  of  steamers.  The  figures,  moreover,  include  the  vessels  built  for  the 
fleet  on  the  Great  Lakes,  and  this  fleet  consists  partly  of  schooner-rigged  barges  that  are  classi- 
fied as  sailing  vessels,  although  they  are  practically  always  towed." 

In  the  future  construction  of  ocean-going  ve.ssels  it'is  probable  that  we  shall  do  as  we  have 
done  in  constructing  our  lake  fleet,  and  substitute  steamers  for  sailing  ves.sels.  The  gross  tonnage 
of  the  vessels  on  the  Great  Lakes  in  1875,  1880,  1890, 1899,  and  1903  (not  including  canal  boats  and 
small  barges),  is  shown  by  the  following  table,  which  also  indicates  the  division  of  the  tonnage 
between  sailing  vessels  and  steamers: 


Number  and  gross  tonnage  of  sailing  \ 


<  and  steamers  on  the  Great  Lakes,  1875,  1880,  1890,  1899,  and  190S. 


Year. 

SaUing. 

Steam. 

Year. 

Sailing. 

Steam. 

Number. 

Tons. 

Number. 

Tons. 

Number. 

Tons. 

Number. 

Tons. 

1875 

1,710 
1,4.69 
1,272 

339,787 
304,933 
328,666 

891 

931 

1,527 

202,307 
212,045 
6.62, 923 

874 
676 

318,175 
315, 195 

1,732 
1,796 

1,014,561 
1,467,992 

1880 

1890 

oDuring  the  calendar  year  1903  the  total  tonnage  of  ships  constructed  in  the  world  comprised  1,964,000  tons  of 
steamers  and  182,000  of  sail.  During  that  year  the  sail  tonnage  of  the  world  decreased  143,000  tons  and  the  steam 
tonnage  increased  1,54.5,000  tons.  During  the  decade  1893-1903  the  steam  tonnage  under  the  American  flag  grew 
1,224,816  tons,  while  the  sail  tonnage  declined  152,272  tons. 


PANMLA.  CANAL  TRAFFIC   AND   TOLLS.  271 

The  steam  tonnage  of  the  lakes  grew  from  203,298  tons  in  1879  to  1,467,992  tons  in  1903,  a 
fourfold  increase  in  twent^'-four  j'ears.  The  sailing  vessels,  although  they  have  decreased 
in  number,  have  apparently  not  declined  greatlj'  in  tonnage.  This  is  more  apparent  than  real 
because,  as  was  stated  above,  a  part  of  the  tonnage,  classified  as  sailing,  consists  of  schooner- 
rigged  barges.     The  sailing  vessel  has  ceased  to  be  an  important  factor  on  the  Great  Lakes. 

It  may  pi'obably  be  assumed  that  the  canal  across  the  Isthmus  will  have  been  completed  and 
put  in  operation  by  lyi-i;  according  to  the  foregoing  facts,  what  will  then  be  the  position  of  the 
sailing  vessel  in  our  maritime  fleets  if  the  rate  of  change  from  sail  to  steam  that  has  taken  place 
during  the  ten  years  from  1889  to  1899  should  simpl}^  be  continued,  our  seagoing  sail  tonnage 
will  have  declined  to  about  650,000  gross  tons  by  1914,  and  our  seagoing  steam  tonnage  will  have 
grown  to  about  1,500,000  gross  tons.  But  the  increase  in  our  seagoing  steam  tonnage  will 
undoubtedly  be  much  more  rayjid  during  the  coming  fifteen  years  than  it  has  been  during  the  past 
decade  and  a  half.  During  the  fifteen  years  from  1884  to  1899  the  steam  tonnage  on  the  Great 
Lakes  increased  214  per  cent.  If  the  seagoing  steam  tonnage  of  the  United  States  in  1899, 
810,800  gross  tons,  should  increase  bj'  a  like  percentage  during  fifteen  years,  it  would  amount  to 
2,546,000  gross  tons  in  1914.  The  assumption  of  such  a  growth  as  this  in  our  seagoing  steam 
tonnage  during  the  first  decade  and  a  half  of  the  twentieth  centurj^  does  not  seem  unwarranted. 
An  estimate  would  seem  to  be  conservative  that  placed  our  sail  tonnage  at  about  one-sixth  of  our 
total  tonnage  in  1914.  Should  the  sailing  vessel  after  1914  continue  to  give  way  to  the  steamer, 
the  isthmian  canal  will  be  used  by  sailing  vessels  only  to  a  limited  extent. 

THE    FUTURE    USE   OF   SAILING    VESSELS   BY   SPECIAL   CLASSES   OF   TRAFFIC. 

There  are  some  kinds  of  freight,  such  as  coal,  lumber,  grain,  nitrate  of  soda,  and  sugar,  espe- 
cially adapted  to  movement  by  sail  because  they  are  shipped  as  full  vessel  cargoes  and  do  not  need 
to  be  transported  rapidly  or  delivered  promptlj'.  Will  this  traffic  continue  to  find  the  sailing 
vessel  the  more  economical  carrier^ 

If  the  sailing  vessel  is  to  be  used  for  the  carriage  of  commodities  that  can  be  shipped  as  full 
cargoes,  the  prevalent  type  of  vessel  will  probably  be  large  five  and  six  masted  steel  schooners 
capable  of  carrying  5,000  or  more  tons  of  cargo.  Two  six-masted  schooners  were  built  on  the 
Maine  coast  during  1899  and  several  other  large  four  and  five  masted  sailing  vessels  were  built 
during  1898  and  1899.  One  of  the  two  six-masted  schooners  is  302  feet  11  inches  long  on  the 
keel  and  345  feet  long  on  deck.  She  has  48  feet  3  inches  beam  and  is  22  feet  6  inches  deep;  her 
gross  tonnage  is  2,974,  the  net  tonnage  2,743,  and  she  will  cany  a  little  over  5,000  tons  of  coal. 
According  to  the  owner,  this  vessel  "was  built  expressly  for  the  coal  trade,  yet  she  is  built  so  as 
to  go  to  any  part  of  the  world  with  any  kind  of  cargo."  The  largest  sailing  vessel  yet  constructed 
is  the  Thomas  W.  Lawson,  which  is  a  seven-masted  schooner  of  5,218  tons  gross  register  and 
having  a  cargo  capacity  of  between  7,000  and  8,000  tons.  The  length  of  the  vessel  is  375  feet 
over  all,  the  beam  50  feet.  Two  five-masted  steel  barks,  the  Preussen  and  Potosi,  nearly  as  large 
as  the  Lawson,  are  owned  in  Hamburg,  Germany.     Like  the  Laioson,  they  date  from  1902. 

During  1899  and  1900  there  was  a  revival  in  the  business  of  building  sailing  vessels,  both 
wooden  and  steel,  caused  bj-  the  great  scarcity  of  ships,  the  high  ocean  freight  rates,  the  high 
price  of  steel,  and  the  unusual  price  of  coal  in  Europe;  but  this  was  probabh'  a  temporary  increase 
in  the  construction  of  sail  tonnage.  If  the  sailing  vessel  is  in  the  future  to  occupy  a  prominent 
place  in  the  ocean  marines  of  the  world,  it  will  be  because  of  its  special  adaptability  to  the  trans- 
portation of  such  commodities  as  sugar,  coal,  nitrates,  grain,  and  lumber.  The  best  basis  for 
deductions  as  to  the  future  is  the  present  practice  of  the  large  shippers  and  carriers  of  these 
special  commodities. 

The  transportation  of  nitrates  from  Chile  to  Europe  and  the  Atlantic  seaboard  of  the  United 
States  is  well  adapted  to  the  sailing  vessel,  and  the  Preussen  and  Pofosi  were  built  for  that  trade. 
It  was  formerly  supposed  that  the  steamer  could  not  compete  with  the  sailing  vessel  in  this  traffic; 
but  during  the  past  few  years  a  large  part  of  the  nitrate  shipments  have  been  made  by  steamers. 
It  is  obvious  that  the  isthmian  canal  will  make  it  much  more  difficult  for  the  sailing  vessel  to 
compete  with  the  steamer  for  this  traffic. 

As  regards  the  transportation  of  grain  and  lumber,  much  the  same  change  seems  probable, 
although  the  lumber  of  our  west  coast  is  at  present  all  shipped  in  sailing  vessels.  If  sailing  ves- 
sels can  not  advantageously  use  the  canal  in  competition  with  the  steamer — a  question  that  is  con- 
sidered at  length  in  the  latter  part  of  this  chapter — the  grain  and  lumber  cargoes  will  certainly 
be  taken  by  the  steamers.  The  action  I'ecently  taken  by  a  company  of  New  York  business  men, 
who  have  acquired  a  large  tract  of  timber  in  the  Carolinas,  is  significant  in  this  connection.  The 
lumber  gotten  out  by  this  company  will  be  shipped  from  Georgetown,  S.  C,  by  two  large  steamers 
built  especially  for  this  business. 

Not  long  since  a  New  York  firm  operating  a  large  fleet  of  sailing  vessels  between  the  two 


272 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


American  seaboards  sold  out  the  entire  fleet  and  in  1900  and  1901  put  in  its  place  seven  steamers 
which  are  plying  between  New  York  and  Pacific  Ocean  ports  and  Hawaiian  Islands  via  the  Straits 
of  Magellan. 

The  trade  between  the  North  Atlantic  countries  and  Aus'tralia  has  long  been  considered  one 
that  would  be  held  by  the  sailing  vessels  against  steam  competition.  This  was  the  opinion  of 
Lieutenant  Maury.  Three  or  four  years  ago,  however,  this  business  was  invaded  by  steamers, 
which  now  carr}-  the  larger  percentage  of  the  traffic. 

The  facts  regarding  the  present  division  of  the  trade  between  the  Suez  route  and  the  route 
followed  by  sailing  vessels  are- especially  important  in  connection  with  this  inquirj'.  In  order  to 
determine  the  extent  and  nature  of  the  present  competition  of  sailing  vessels  with  steamers  in  the 
trade  between  Europe  and  the  East,  the  following  table  has  been  compiled  from  British  reports. 
It  gives  the  tonnage  of  steam  and  sailing  vessels  cleared  from  British  ports  for  the  foreign  ports 
of  the  East  in  the  years  1893  and  1898.  While  it  does  not  include  the  clearances  from  other 
North  Atlantic  countries,  it  undoubtedly  represents  the  facts  for  the  entire  trade,  because  the 
major  share  of  the  commerce  between  the  North  Atlantic  and  the  East  is  in  the  hands  of  Great 
Britain.  Moreover,  this  table  is  to  some  extent  supplemented  by  figures  regarding  the  sail  and 
steam  tonnage  employed  in  the  trade  from  Germany  to  the  East. 

Tonnage  of  steam  and  sailing  vesnels  cleared  from  British  ports  for  the  East  in  1893  and  189S. 


Destination  of  vessels. 


Java 

Borneo  and  other  Dutch  possessions  in  the  Indian  Sea 

French  possessions  in  East  Africa  and  Asia  and  Pacific  islands. 

Portuguese  East  Africa  and  India 

Philippine  and  Ladrone  islands 

Abyssinia 

Madagascar 

Prussia 

Siam. 


China,  exclusive  of  Hongkong. 

Japan  

Pacific  islands 

Zanzibar 

Mauritius 

Aden 

British  possessions  in  India: 

Bombay  and  Scinde 

Madras 


Bengal  and  Burmah 

Ceylon :.. 

Straits  Settlements 

Hongkong 

Australia  and  New  Zealand: 

West  Australia 

South  Australia 

Victoria 

New  South  Wales 

Queensland 

Tasmania 

New  Zealand 


Total 3,026,486 


Steam  and  sail  combined. 


194, 873 
10,858 
3,367 
8,118 
32,811 
2,743 
706 
4,047 
902 
34,027 
83,  401 
6,361 
6,416 
34,  920 
86,183 

601,895 
128,050 


211,603 
297, 574 
10, 943 

43, 692 
135, 965 
143, 309 
199, 200 
50,496 
31,419 
140, 068 


182, 582 

2,144 

12,  580 

346, 706 

33, 876 

6,948 

7,054 

4,108 

966 

71,283 

413,906 

10, 673 


485,711 
19,273 
595, 962 
116,875 
128, 546 
56, 828 
46,216 

so.se.'i 

51,416 
73,247 

893,843 
96,366 
6,422 

209,175 


Increase 
in  five 
years. 


1112,291 

a  8, 714 

9,223 

338,588 

1,065 

4,205 

6,348 

61 

64 

37,256 

330, 605 

4,222 

0  2,733 

37,057 

11,471 


a  83, 057 

3  241,746 

36, 273 

6,661 
0  84,539 
a  70, 062 
194,643 

45, 870 
o  24,  997 

69, 107 


3,694,273  I    567,787 


164,080 
2,034 

14, 490 
7,657 

31,346 
2,743 


2,481 


426, 201 

185,100 

267,845 

6,327 

22,  559 
82,439 
97, 329 

122, 658 
33,146 
29,088 

103,  744 


170,500 
10, 921 
11,623 
337, 645 
30, 680 
6,948 
2,186 
4,108 
476 


106,916 
128,  546 
46,815 
26, 148 

26, 041 

9, 721 

9,328 

293, 962 

67,017 


176,500 


Increase 
in  five 
years. 


4,205 
2,186 
1,627 


o 1,178 
43, 073 
11,471 


0  56,554 

0  221,030 

20, 821 

3,482 
o  72, 718 
0  88,001 
171,294 
33, 871 
0  29,088 
72,756 


562,072 


From  the  foregoing  table  it  appears  that  the  total  clearances,  steam  and  sail,  from  British 
ports  for  the  East  increased  567,784  tons  during  the  five  years  from  1893  to  1898,  and  that  nearly 
all  of  this  increase  was  in  steam  tonnage,  the  growth  in  the  tonnage  of  steam  vessels  being 
562,072  tons,  or  all  but  6,716  tons  of  the  total  increase.  By  making  the  proper  subtractions,  the 
sail  tonnage  for  1893  is  found  to  be  498,757  tons;  and  for  1898,  504,472  tons.  The  facts,  then, 
are  that  the  sailing  tonnage  remained  practically  stationary,  while  the  steam  tonnage  considerably 
increased.  The  .sail  tonnage  did  not  fall  off  absolutely,  but  declined  relatively.  In  1893  the  sail 
tonnage  constituted  16.4  per  cent  of  the  total  steam  and  sail,  whereas  in  1898  the  sail  tonnage 
constituted  only  14  per  cent  of  the  total,  the  decline  having  been  nearly  2^  per  cent  in  five  years. 

The  clearances  from  Great  Britain  to  certain  special  ports  in  the  East  present  figures  quite 
as  significant  as  the  totals  referred  to  above.  The  commerce  entering  Eastern  Africa  by  way  of 
the  Portuguese  po.ssessions  represents  a  comparatively  new  trade.  In  1893  the  trade  was  very 
small,  but  in  1898  it  had  grown  to  large  proportions.  It  is  interesting  to  note  that  practically 
all  of  this  new  tonnage  consisted  of  steamers.  Japan  presents  a  similar  showing.  The  recent 
rapid  growth  of  the  trade  of  Great  Britain  with  Japan  has  brought  into  service  a  large  amount 


PANAMA  CANAL  TEAFFIC   AND  TOLLS.  273 

of  steam  tonnage  and  but  a  very  small  number  of  sailing  vessels.  The  figures  for  Bengal  and 
Burmah  also  show  that  nearly  all  of  the  large  increase  in  the  clearances  from  Great  Bntam  to 
those  countries  consisted  of  steam  tonnasre.  The  same  statement  applies  to  New  South  Wales. 
In  the  case  of  New  Zealand  the  increase  in  the  steam  tonnage,  durmg  the  five  years  under  con- 
sideration, was  larger  than  the  total  increase  in  steam  and  sail  tonnage  combmed.  This  mdicates 
a  falling  off  in  the  use  of  sailing  vessels. 

In  the  trade  from  Germany  to  the  Far  East  the  change  from  sail  to  steam  tonnage  is  taking 
place  very  rapidlv.  German  trade  directly  with  the  East  has  largely  increased  during  the  past 
decade,  and  this  new  traffic  has  brought  steamers,  and  not  sailing  vessels,  into  use.  The  follow-  . 
ing  figures  taken  from  the  German  reports  indicate  this,  and  also  show  that  sail  tonnage  has 
fallen  off.  In  1890  there  cleared  from  German  ports  for  British  India  and  the  islands  of  the 
Indian  Ocean,  sail  tonnage,  76,000  net  tons;  steam  tonnage,  219,000  tons.  In  1897  the  figures 
were:  For  sail,  55,000,  and  for  steam  319,000.  That  is  to  say,  during  those  seven  years  the 
tonnage  of  sailing  vessels  cleared  from  Germany  for  British  India  and  the  islands  of  the  Indian 
Ocean  decreased  21,000  tons,  while  steam  tonnage  increased  100,000  tons.  In  1890  there  cleared 
from  Germany  for  China  sailing  vessels  with  a  net  tonnage  of  9,000,  and  steamers  with  a  tonnage 
of  70,000.  In  1897  no  sailing  vessels  cleared  for  China,  but  the  tonnage  of  steamers  had  grown 
to  110,000  net  tons. 

MERITS   OF    THE    STEAMER   AND    SAILING   VESSEL   COMPARED. 

The  special  advantages  of  the  sailing  vessel  are  that  its  motor  power  costs  nothing  and  that 
it  requires  a  smaller  crew  of  men  than  is  necessary  for  a  steamer  of  the  same  size.  The  British 
reports  show  that  a  tvpical  sailing  vessel  of  2,381  net  tons  is  manned  by  a  crew  of  3-t  men,  23  of 
whom  are  seamen.  A  steam  vessel  of  nearly  the  same  tonnage,  2,315  tons  net,  has  a  crew  of  38 
men,  of  whom  11  are  seamen  and  17  are  engineers,  firemen,  and  coal  passers.  Taking  the  total 
British  merchant  marine,  the  number  of  men  was  15.8  in  1898  per  1,000  net  tons  on  British  sailing 
vessels,  while  on  the  steam  vessel  the  number  of  men  was  22  per  1,000  tons. 

In  the  foreign  trade  of  Great  Britain  the  number  of  persons  employed  on  sailing  vessels  for 
each  100  tons  net  register  was,  in  1880,  2.32;  1890,  1.96;  1898,  1.65.  On  steam  vessels  the  num- 
ber employed  for  100  tons  net  register  was,  in  1880,  2.95;  1890,  2.73;  1898,  2.32.  These  figures 
are  sufficient  to  show  that  steamers  require  more  men  than  sailing  vessels  for  an  equal  amount  of 
tonnage.  In  large,  slow-going  steam  vessels  the  number  of  men  required  is  relatively  small  and 
may,  indeed,  not  exceed  1  man  per  100  tons  net  register,  but  it  is  equally  true  that  a  large  schooner 
requires  a  very  small  crew  of  men— even  smaller  than  is  needed  by  the  large,  modern,  slow  freight 

steamer.  '  ,      .        «  •     j  .     xi 

There  seems,  moreover,  to  be  but  a  small  difference  in  the  size  of  crews  required  by  the  more 
recently  constructed  steamers  and  sailing  ves.sels  of  equal  caoacity.  A  steamer  of  3,000  tons 
dead-weight  cargo  capacity  (which  would  be  a  small  steamer)  and  a  sailing  vessel  of  equal  capacity 
(which  would  be  a  relatively  large  .sailing  ship)  would  each  have  a  crew  of  23  or  21  men.  The 
sailing  vessel's  crew,  however,  would  include  a  larger  number  of  unskilled  laborers— seamen— 
than  would  the  steamer,  and  the  sailing  vessel's  expenses  for  labor  would  be  somewhat  lower  than 
the  steamer's.  .  .^i        •    i 

The  disadvantages  of  the  sailing  vessel  are  its  slow  speed,  its  dependence  upon  the  winds 
and  c«irrents,  and  the  consequent  uncertainty  as  to  the  time  of  delivering  the  cargo  assigned  to  it. 
The  superiority  of  the  steamer  consists  in  its  speed  and  its  ability  to  assure  the  delivery  of  its 
freight  at  a  st'ipulated  time,  unless  violent  storms  are  encountered.  The  disadvantages  of  the 
steamer  are  the  cost  of  coal,  the  large  amount  of  space  taken  up  by  the  coal  bunkers  and  machin- 
ei.y_one-fourth  to  one-third  of   the  hull  capacity— and  the  somewhat  larger  crew  ordinarily 

required.  j     i  i.    i  i.u 

As  regards  the  cost  of  coal,  mechanical  improvements  have  done  a  great  deal  to  lessen  the 
steamers  handicap.  Some  of  these  new  steamers  for  the  trade  between  our  two  seaboards  will 
carry  10,000  dead-weight  tons,  besides  2,500  tons  of  coal.  They  have  quadruple  expansion 
engines,  with  boiler  pressure  of  210  pounds  to  the  square  inch.  These  vessels  will  consume  40 
tons  of  coal  per  day,  running  at  9  knots  per  hour.  It  is  planned  now  that  in  making  the  trip  via 
the  Straits  of  Magellan  they  will  coal  only  at  Coronel,  Chile.  The  consumption  of  coal  between 
New  York  and  San  Francisco  via  the  canal  will  be  about  1,000  tons  each  way.  This  will  make 
the  consumption  224  pounds  per  ton  of  freight  each  one-way  trip.  Assuming  the  price  of  coal 
free  on  board  vessels  in  Atlantic  ports  to  be  $2.50  per  ton  of  2,240  pounds,  it  would  take  one- 
tenth  of  a  ton  of  coal,  costing  25  cents,  to  transport  one  ton  of  cargo  between  New  York  and 
San  Francisco. 

The  data  presented  in  the  foregoing  paragraphs  do  not  fully  demonstrate  the  inability  ot  the 
sailing  vessal  to  compete  with  the  steamer  in  the  future  for  the  transportation  of  special  classes 


274  PANAMA  CANAL  TKAFFIC   AND  TOLI.S. 

of  commodities,  but  the  evidence  strongly  indicates  that  result.  That  the  sailing  vessel  will  con- 
tinue to  be  used  for  some  time  to  come,  especially  by  the  people  of  the  United  States,  seems 
probable,  but  our  use  of  the  sailing  vessel,  however,  will  be  restricted  mainly  to  two  classes  of 
service.  One  of  these  two  fields  of  usefulness  will  be  that  part  of  our  coasting  trade  that  can 
not  readily  be  so  organized  as  to  be  performed  by  regular  lines  of  steamers.  The  other  use  to 
which  we  shall  continue  to  put  the  sailing  vessel  will  be  that  of  performing  the  irregular  or 
skirmish  work  of  international  trade.  There  is  at  the  present  time  an  irregular  trade  develop- 
ing between  the  United  States  and  several  parts  of  South  America — such,  for  instance,  as  that 
being  carried  on  between  the  Gulf  ports  ancl  the  River  Plata.  In  the  earlier  stages  of  the  devel- 
opment of  such  a  txafSc  the  .sailing  ves.sel  is  a  convenient  agent;  but  when  the  trade  becomes 
larger  and  the  exchange  of  commodities  between  the  two  sections  becomes  regular  and  continu- 
ous, a  line  of  steamers  will  be  established,  and  most  of  the  sailing  vessels  will  be  obliged  to  with- 
draw from  the  business.  The  withdrawal  of  sailing  vessels  from  the  trade  between  the  United 
States  and  the  Orient  and  the  substitution  of  steamers  for  the  greater  part  of  the  traffic  between 
our  two  seaboards  are  instances  of  the  substitution  of  the  steamer  for  the  sailing  vessel  when  the 
amount  of  business  to  be  done  had  become  regular  and  large  in  volume. 

WOULD   SAILING    VESSELS   USE    A    CANAL   EITHER   AT   PANAMA    OR   ACROSS   NICARAGUA? 

It  does  not  seem  probable  that  coal,  lumber,  grain,  nitrates,  and  sugar — commodities  that 
will  make  up  a  large  share  of  the  canal's  traffic — will  in  the  future  be  carried  to  a  large  extent  in 
sailing  vessels.  Nevertheless,  the  sailing  vessel  will  be  a  carrier  of  some  importance  when  the 
canal  is  opened,  and  possibly  for  a  score  of  j'ears  thereafter.  Such  being  the  case,  the  relative 
advantages  of  the  Panama  and  Nicaragua  routes  for  sailing  vessels  should  be  compared.  The 
extent  to  which  sailing  vessels  will  use  an  isthmian  waterway  will  depend  upon  the  actual  saving 
in  time  which  a  sailing  vessel  could  make  by  using  the  canal  instead  of  the  Cape  route,  and  upon 
whether  sailing  vessels  can  compete  with  steamers,  both  using  the  canal  route. 

In  the  year  1866  Lieut.  M.  F.  Maury,  in  a  letter  written  to  a  friend,  made  the  following 
statement: 

The  result  of  my  investigations  into  the  winds  and  currents  of  the  sea  and  their  influence  upon  the  routes 
of  commerce  authorize  the  opinion  which  I  have  expressed  before,  and  which  I  repeat,  namely,  if  nature,  by  one  of 
her  convulsions,  should  rend  the  continent  of  America  in  twain  and  make  a  channel  across  the  Isthmus  of  Panama 
or  Darien  as  deep,  as  wide,  and  as  free  as  the  Straits  of  Dover  it  would  never  become  a  commercial  thoroughfare  for 
sailing  vessels,  saving  the  outward  bound  and  those  that  could  reach  it  with  leading  winds.  *  *  *  You  will 
observe  at  a  glance  that  the  Isthmus  of  Panama  or  Darien  is,  on  account  of  these  winds  and  calms,  in  a  purely  com- 
mercial point  of  view,  the  most  out-of-the-way  place  of  any  part  of  the  Pacific  coast  of  intertropical  America. 

Those  persons  who  have  endeavored  to  prove  that  the  Panama  route  could  not  be  used  by 
sailing  vessels  have  cjuoted  the  foregoing  statements  of  Lieutenant  Maury,  and  have  interpreted 
his  statements  to  mean  that  no  sailing  vessel  would  or  could  make  use  of  a  canal  across  the 
Isthmus  of  Panama.  It  is  well,  however,  to  note  the  exception  which  Lieutenant  Maury  makes 
at  the  close  of  his  general  statement.  He  says  the  Panama  route  "would  never  become  a  com- 
mercial thoroughfare  for  sailing  vessels,  saving  the  outward  bound  and  those  that  could  reach  it 
with  leading  winds."  In  view  of  this  limiting  clause,  it  would  seem  that  Lieutenant  Maury 
thought  sailing  vessels  outward  bound  from  Europe  or  from  any  North  Atlantic  port  to  the 
Pacific  might  pass  through  a  Panama  canal.  His  statement  would  also  indicate  him  to  think  that 
vessels  bound  from  the  west  coast  of  the  United  States  for  the  Atlantic  might  pass  through  a 
Panama  canal  during  the  winter  months,  when  the  winds  and  currents  are  favorable  for  vessels 
sailing  .southward  toward  Panama.     When  we  consider  that  the  larger  part  of  the  Pacific  coast 

frrain  would  be  exported  during  the  later  autumn  and  winter  months,  and  that  a  large  part  of  the 
imiber  from  the  Pacific  coast  of  North  America  might  be  shipped  during  the  winter  half  of  the 
year,  we  must  conclude  that  Lieutenant  Maury's  apparently  strong  statement  does  not  pi'eclude 
the  possibility  of  a  considerable  trafiic  in  .sailing  vessels  through  that  waterwa}". 

Hydrographers,  ship  brokers,  and  sailing  masters  generally  disbelieve  in  the  practicability 
of  the  use  of  a  Panama  canal  by  sailing  vessels.  There  is  no  doubt  that  sailing  vessels  can  enter 
and  clear  the  Baj'  of  Panama — they  now  do  so  to  a  limited  extent — nor  would  it  be  impossible 
for  a  .sailing  vessel  to  make  use  of  a  Panama  canal;  but  there  is  little  reason  to  think  that  the 
sailing  ship  would,  under  the  conditions  of  competition  that  will  prevail  after  the  waterwa}'  has 
been  opened,  pass  from  one  ocean  to  the  other  in  any  considerable  numbers. 

It  perhaps  ought  to  be  stated  in  this  connection  that  sailing  vessels  bound  from  Panama 
either  to  the  north,  south,  or  west  are  obliged  to  work  their  way  southward  and  westward  to  the 
Galapagos  Islands,  and  usually  .some  distance  west  of  that  group,  before  getting  the  winds  and 
currents  that  will  take  them  to  their  destination.  Vessels  bound  fi-om  Panama  to  San  Francisco 
are  advised  b}'  Maury's  sailing  directions  to  work  their  way  down  the  Colombia  coast,  and  during 


PANAJVIA  CAJSTAL  TRAFFIC  AND   TOLLS. 


275 


the  months  from  June  to  January,  inclusive,  to  change  their  course  about  latitude  2°  north, 
standing  off  the  coast  to  the  westward,  passing  north  of  the  Galapagos  Islands.  From  February 
to  June,  inclusive,  it  is  better  for  the  vessel  to  work  southward  across  the  equator  before  turning 
to  the  west.  The  course  toward  the  west  is  maintained  until  the  one  hundredth  meridian  is 
passed,  and  then  the  vessel  maj'  "edge  away  for  Cipperton  Rock  (10'-'  18'  N.  and  109°  10'  W.), 
after  passing  which  they  may  push  to  the  northward  for  the  northern  trades." 

Before  Maury  worked  out  these  sailing  directions,  as  the  result  of  his  study  of  winds  and 
currents,  .sailing  vessels  consumed  90  days,  on  an  average,  in  sailing  from  Panama  to  San  Fran- 
cisco by  the  direct  route.  According  to  the  geographer  Berghaus,  the  average  time  taken  to  make 
the  voj'age  by  Maury's  route  is  37  days.  The  disttmce  by  the  circuitous  route  is  somewhat  more 
than  5,000  nautical  miles.  The  direct  route,  the  one  followed  by  steamers,  is  nearlj^  2,000  knots 
shorter  than  the  one  taken  by  sailing  vessels. 

A  most  careful  study  of  the  conditions  affecting  the  use  of  the  Panama  and  Nicaragua  routes 
by  sailing  vessels  was  made  bj'  Lieut.  Frederick  Collins,  U.  S.  Navy,  in  1872.  He  studied  the 
winds  and  currents  prevailing  at  different  seasons  of  the  j'ear  in  each  part  of  that  section  of  the 
ocean  that  would  be  ti'aversed  by  sailing  vessels  plying  between  Panama,  Nicaragua,  and  other 
Pacific  ports,  and  then  estimated  the  number  of  days  that  it  would,  on  an  average,  take  a  sailing 
vessel  to  make  the  voyage  between  the  two  isthmian  ports  and  other  Pacific  harbors.  The  gen- 
eral conclusion  to  which  he  came  in  regard  to  the  navigation  of  the  Bay  of  Panama  was  that  "  no 
great  difficulty  need  be  experienced  in  getting  from  the  vicinity  of  the  Bay  of  Panama  to  where 
good  winds  might  be  found.  *  *  *  ^  careful  computation  gave  only  10  days  as  the  average 
time  that  would  be  consumed  in  getting  a  sufiicient  offing  to  secure  good  winds,  providing  the 
correct  route  was  pursued."  The  route  considered  correct  by  Lieutenant  Collins  was  the  one 
adopted  by  Lieutenant  Maury,  to  which  reference  was  made  above. 

The  distances  which  Lieutenant  Collins  calculated  sailing  vessels  would  have  to  travel  in 
proceeding  from  Panama  and  from  Brito  to  reach  San  Francisco,  and  the  number  of  daj's  which 
each  of  these  trips  would  require,  are  indicated  bj'  the  following  table: 


Panama  to  San  Francisco 

NicaragTia  to  San  Francisco 

Difference  in  favor  of  Nicaragua 


The  table  makes  the  time  required  for  a  sailing  vessel  to  reach  San  Francisco  to  be  l-t  days  less 
when  the  trip  begins  at  Brito  than  when  it  begins  at  Panama.  The  distances  and  time  required 
for  the  return  trip  from  San  Francisco  to  Panama  and  Brito  are  indicated  by  the  following  table: 


Miles. 

Days. 

Miles. 

Days. 

October  to  April: 

3,600 
3,000 

26 

April  to  October: 

4,000 
3,400 

600 

4 

600 

•According  to  the  calculations  of  Lieutenant  Collins,  the  time  required  for  a  sailing  vessel  to 
make  a  round  trip  from  Nicaragua  to  San  Francisco  would  be  nineteen  daj's  less  than  for  a  round- 
trip  voyage  between  Panama  and  San  Francisco.  These  figures  would  seem  to  indicate  that  if 
either  route  is  available  for  sailing  vessels,  the  Nicaragua  route  would  possess  decided  advan- 
tages over  the  one  at  Panama.  However,  other  authorities  differ  from  Lieutenant  Collins  as  to 
some  of  these  conclusions.  The  figures  given  for  the  length  of  the  average  voyage  from  Nica- 
ragua to  San  Francisco  is  3,240  nautical  miles.  This  seems  too  .short;  indeed,  the  United  States 
Hydrographic  Office  estimates  the  distance  to  be  4,600  miles.  The  great-circle  distance,  or  the 
length  of  the  route  followed  by  full-powered  steamers,  is  2,700  miles.  Furthermore,  experienced 
navigators  assert  that  a  vessel  bound  for  Brito  must  beat  up  and  down  the  coast  or  go  far  to  the 
westwai-d;  and  that,  although  the  Nicaragua  route  is  more  advantageous  than  the  one  from 
Panama  for  sailing  vessels,  it  is  nevertheless  neces,sary  for  vessels  to  make  a  long  detour  from  a 
direct  course. 

The  distance  for  steamers  from  Panama  to  San  Francisco  being  3,277  nautical  miles,  a  9-knot 
steam  freighter  would  make  the  run  in  15  days,  a  10-knot  ship  in  13.6  days,  and  a  vessel  of  12 
knots  in  11.3  days.  These  figures  are  to  be  contrasted  with  37  days,  the  average  time  required 
by  the  sailing  vessel.     From  Brito  to  San  Francisco  the  distance  for  steamers  is  2,700  nautical 


276  PANAJVIA  CANAL  TRAFFIC   AND   TOLLS. 

miles.  To  make  this  run,  a  9-knot  freigiiter  would  require  12^  days,  a  iO-knot  ship  11^  days, 
and  a  12-knot  vessel  9|  days.  Lieutenant  Collins  made  the  time  by  sail  between  Nicaragua  and 
San  Francisco  vary  from  22  to  26  days,  but,  for  reasons  just  stated,  his  calculations  underestimate 
(possibly  by  about  5  days)  the  time  that  would  actually  be  required. 

SAVING   TO   SAILING    VESSELS   BY   USE   OF   ISTHMIAN    CANAL   INSTEAD   OF   CAPE    ROUTE. 

Concerning  the  time  required  to  make  the  voyage  by  sailing  vessel  from  New  York  to  San 
Francisco,  abundant  information  is  obtainable  from  the  logs  of  the  many  sailing  vessels  that  are 
now  navigated  between  those  two  ports.  A  New  York  firm  operating  sailing  vessels  from  New 
York  to  San  Francisco  has  reported  the  time  taken  by  eleven  ditferent  sailing  vessels  that  made 
the  trip  during  the  year  1898.  The  average  time  for  these  vessels  was  138  daj's,  the  range  being 
from  113  to  l.')l  days.  Another  New  York  firm  doing  a  large  business  with  the  Pacific  coast  has 
given  the  time  required  by  seven  sailing  vessels  whose  voj'ages  were  made  at  different  seasons  of 
the  3'ear.  The  time  taken  ranges  from  118  to  169  days,  the  average  for  the  seven  being  139 
days.  Both  of  these  firms  report  that  they  consider  1-40  days  to  be  a  fair  average  for  the  west- 
bound passage.  For  the  return  trip  from  San  Fi'ancisco  to  New  York  the  time  taken  is  somewhat 
less,  and  is  said  to  average  from  110  to  115  days. 

In  order  to  arrive  at  the  time  a  sailing  vessel  would  require  to  make  the  trip  from  New  York 
to  San  Francisco  by  way  of  an  isthmian  canal,  it  is  necessary  to  add  the  time  that  would  be  taken 
for  the  voyage  from  New  York  to  the  Isthmus,  the  time  that  would  be  required  for  making  the 
transit  through  the  canal,  and  the  number  of  days  necessary  for  reaching  San  Francisco  after 
leaving  the  Isthmus.  When  Commander  (now  Rear- Admiral)  Selfridge  gave  Lieutenant  Collins 
instructions  to  investigate  and  report  upon  the  time  it  would  take  sailing  vessels  to  make  a  voyage 
between  the  Isthmus  of  Panama  and  various  Pacific  ports,  he  said: 

In  composing  the  table  you  will  allow  an  average  of  twenty  days  to  and  from  the  United  States  and  the  mouth  of  the  Atrato;  thirty 
days  from  the  English  Channel  to  the  same  point,  and  forty  days  homeward  to  Europe. 

It  would  take  a  sailing  vessel  practically  the  same  time  to  reach  Panama  or  Greytown  that 
it  would  to  reach  the  mouth  of  the  Atrato.  On  the  basis  of  the  averages  accepted  by  Admiral 
Selfridge  for  the  Atlantic  part  of  the  voyage,  and  by  Lieutenant  Collins  for  the  Pacific  portion 
of  the  trip,  a  vessel  would  be  twenty  davs  from  New  York  to  the  Isthmus,  thirtj'-eight  days  from 
Panama  to  San  Francisco,  a  total  of  fifty-eight  days,  to  which  should  be  added  one  day  for  the 
passage  of  a  Panama  canal.  Lieutenant  Collins  estimated  twenty-three  dajs  as  the  time  required 
by  a  sailing  vessel  to  reach  San  Francisco  from  Brito.  For  reasons  that  have  already  been  stated, 
tnis  estimate  seems  to  be  too  small.  If  twent}' -eight  days  be  accepted  as  a  fair  estimate  of  the 
sailing  time  required  between  Brito  and  San  Francisco,  the  time  required  for  a  sailing  vessel  from 
New  York  to  San  Francisco  would  be  twenty  days  for  the  Atlantic  part  of  the  trip  from  New  York 
to  Greytown,  two  days  for  the  passage  through  the  canal,  and  twenty-eight  days  from  Brito  to 
San  Francisco,  a  total  of  fifty  days.  The  probable  time  required  by  sailing  vessels  to  make  the 
trip  from  New  York  to  San  Francisco  b}'  way  of  the  Cape  and  through  the  two  canals  would  then 
be  as  follows: 

For  the  Cape  route  one  hundred  and  forty  days;  for  the  Panama  route  fifty-nine  days,  and 
for  the  Nicaragua  route  fifty  days.  According  to  these  figures,  a  sailing  vessel  could  save  on  an 
average  eighty-one  days  by  using  a  Panama  canal  instead  of  making  the  trip  around  the  Cape, 
and  ninety  days  by  using  the  Nicaragua  canal  instead  of  the  present  route. 

The  east-bound  trip  from  San  Francisco  to  New  York  can,  on  account  of  the  more  favorable 
winds  in  the  Southern  Hemisphere,  be  made  in  a  shorter  time  than  is  required  for  the  west- 
bound trip.  One  hundred  and  fifteen  days  can  probably  l)e  assumed  as  a  fair  average  for  the 
trip  fi'om  San  Francisco  to  New  York  around  the  Horn.  Lieutenant  Collins  estimated  that  a 
vessel  would  on  an  average  require  twenty-six  days  from  San  Francisco  to  Panama  during  the 
winter  months,  and  thirtj'-one  da^'s  during  the  summer  months.  On  the  basis  of  these  estimates 
the  time  required  for  a  sailing  vessel  to  make  a  voyage  from  San  Francisco  to  New  York  by  way 
of  a  Panama  canal  would  be  forty -seven  days  during  the  winter  months  and  fifty-two  da^s  during 
the  summer  season.  That  is  to  say,  a  general  average  of  about  fifty  days  for  the  year  as  a  whole. 
The  time  estimated  by  Lieutenant  Collins  for  a  sailing  vessel  starting  from  San  Francisco  to 
reach  Nicaragua  was  twenty-two  days  in  the  winter  months  and  twenty-six  days  in  the  summer 
season.  This  would  make  the  time  from  San  Francisco  to  New  York  forty-four  days  for  half  of 
the  year  and  forty-eight  days  for  the  other  half,  or  an  average  for  the  j'ear  of  forty-six  days. 

In  view  of  the  uncertainties  attending  the  navigation  of  the  Pacific  Ocean  near  the  American 
coast,  where  sailing  vessels  are  obliged  to  beat  for  a  considerable  part  of  the  distance,  it  would 
seem  conservative  to  add  five  days  to  each  of  the  foregoing  averages  and  assume  fifty-five  days 
for  the  trip  by  way  of  Panama  and  fifty-one  days  for  the  voyage  by  the  Nicaragua  route.     Assum- 


PAN.UIA  CAN.4L  TRAFFIC   AND  TOLLS.  277 

ing  that  one  hundred  and  fifteen  days  is  the  average  time  required  for  a  vessel  to  make  the 
east-bound  trip  around  Cape  Horn,  the  Panama  route  would  enable  the  vessel  to  save  sixty  days 
and  the  Nicaragua  Canal  sixty-four  days. 

Vessel  owners  report  that  $75  per  day  will  cover  all  the  expenses  of  operating  a  sailing  vessel 
of  2,000  tons  net  (including  wages,  interest,  repairs,  insurance,  and  all  other  items  of  expense). 
The  foregoing  reduction  in  length  of  voyage  would  effect  the  following  net  saving  in  the  cost  of 
moving  a  cargo  of  freight  by  such  a  sailing  vessel  between  New  York  and  San  Francisco^  which 
may  be  taken  as  typical  Atlantic  and  Pacific  ports.  A  sailing  vessel  bound  from  New  York  to 
Saii  Francisco  could  save  eighty-one  days  by  way  of  the  Panama  route,  which  would  be  equiva- 
lent, at  the  rate  of  §75  per  day,  to  a  saving"^of  |6,075.  If  we  assume  a  toll  of  §1  per  net  ton  and 
a  towage  cost  of  $450  for  a  Panama  canal,  the  saving  effected  by  the  vessel  would  be  as  follows: 

Eighty-one  days,  at  $75  per  day S*'i  O""* 

Toll,  at  §;l  per  ton I>2,  000 

To^'^g'^ _^    2.450 

Net  saving 3, 625 

For  the  Nicaragua  Canal  the  account  would  stand  as  follows: 

Ninety  days,  at  $75  per  day $6,  750 

Toll........ ...  — - ?2,000 

Towage 600 

2, 600 

Net  sa^■ing - - 4, 150 

The  towage  costs  adopted  in  the  foregoing  estimates  are  on  the  basis  of  a  charge  of  30  cents 
per  net  register  ton  for  towage  through  a  Nicaragua  canal  and  22^  cents  per  net  register  ton  for 
a  Panama  canal.  In  order  to  secure  a  reliable  estimate  of  the  probable  cost  of  securing  towage 
through  each  of  the  proposed  canals,  a  score  of  large  towboat  companies  were  requested  to 
submit  an  estimate  of  the  charges  that  would  need  to  be  made  for  the  service  of  towing.  The 
letter  requesting  the  information  stated  that — 

The  total  length  of  a  canal  at  Nicaragua  would  be  about  190  miles.  Of  this  distance  about  70  miles  will  consist 
of  excavated  channel,  about  50  miles  of  improved  river  navigation,  and  about  70  miles  of  lake. 

And— 

The  distance  from  anchorage  at  Colon  to  anchorage  at  Panama  is  about  47  miles,  only  a  short  distance  being 
open  for  navigation.  It  is  also  probable  that  sailing  vessels  would  usually  desire  to  be  towed  about  100  miles  from 
Panama  out  to  sea,  and  in  making  your  estimate  of  the  cost  of  towage  for  the  Panama  Canal  we  should  be  pleased 
to  have  you  give  both  the  cost  of  towage  between  Colon  and  Panama  and  the  cost  of  towing  100  miles  on  the  Bay 
of  Panama. 

The  replies  received  in  response  to  this  request  varied  so  largely  that  they  did  not  furnish 
the  basis  for  so  close  an  estimate  as  it  was  hoped  might  be  made.  The  estimate  adopted  was  one 
of  those  midway  between  the  higher  and  lower  extremes,  and  one  submitted  by  a  well-informed 
gentleman  who  was  known  to  have  given  the  question  careful  consideration.  His  estimate  of  the 
cost  of  towing  loaded  sailing  vessels  through  a  Nicaragua  canal  was  30  cents  per  net  ton  register, 
and  for  towing  loaded  ships  through  a  Panama  canal  and  100  miles  to  sea — li?  miles  altogether — 
was  22^  cents  per  net  ton  register. 

Provision  was  made  in  the  Panama  estimate  for  towing  vessels  100  miles  out  to  sea,  because 
it  was  believed  that  a  sailing  ship  would  ordinarily  save  more  than  enough  in  the  time  of  getting 
to  sea  to  pay  the  additional  charges.  Indeed,  it  is  probable  that  a  tow  of  several  hundred  miles 
would  at  times  be  found  profitable. 

The  foregoing  estimates  of  the  savings  possible  for  a  sailing  vessel  to  effect  by  using  a 
Panama  or  a  Nicaragua  canal,  instead  of  the  Horn  route,  do  not  take  into  consideration  the  saving 
in  insurance  that  would  be  effected  by  the  reduction  in  insurance  charges  that  would  result  from 
the  use  of  an  isthmian  instead  of  a  Cape  route.  This  reduction  would  be  about  50  per  cent  of 
the  existing  insurance  charges,  and  would  be  the  same  for  each  of  the  two  routes. 

The  foregoing  calculations,  it  may  be  well  to  repeat,  are  based  upon  the  estimated  saving 
which  a  sailing  vessel  could  ordinarily  make  by  the  use  of  each  of  the  proposed  waterways.  It 
is  well  known  that  sailing  vessels  require  very  different  times  for  making  the  run  between  the 
same  ports.     The  foregoing  estimates  are  intended  only  to  represent  the  average  savings  possible. 

Among  the  general  deductions  that  seem  warranted  by  the  facts  set  forth  in  the  preceding 
pages  are  the  following: 

1.  A  canal  across  Nicaragua  would  enable  a  sailing  vessel  to  accomplish  a  greater  net  saving 
over  the  expenses  of  the  present  route  around  the  Horn  than  could  be  effected  by  using  a  Panama 
canal.  The  difference  in  the  advantages  of  the  two  routes  for  sailing  vessels,  while  not  large,  is 
34998°— 12 19 


278  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

sufficient  to  be  made  a  factor  of  some  importiince  in  deciding  which  route  should  be  adopted  were 
it  probable  that  either  route  would  be  largeh*  used  by  sailing  ships. 

2.  Neither  the  Nicaragua  Canal  nor  the  one  across  the  Isthmus  of  Panama  would  be  much 
used  by  sailing  vessels.  The  unmistakable  tendency  of  commerce  is  to  use  steamers  instead  of 
sailing  vessels  for  all  classes  of  traffic.  The  sailing  vessel  would  compete  with  the  steamer  for 
the  traffic  through  either  of  the  canals  under  conditions  so  unfavorable  as  to  make  practically 
certain  the  general  substitution  of  the  steamer  for  the  sailing  vessel  for  all  lines  of  trade  through 
the  isthmian  waterway. 

The  consideration  of  the  Ivicaragua  and  Panama  Canal  routes,  from  the  standpoint  of  their 
relative  usefulness  as  commercial  highways,  becomes  mainly  a  question  of  determining  which  is 
the  more  advantageous  route  for  the  steamers  engaged  in  the  maritime  commerce  of  the  United 
States  in  particular  and  of  the  world  in  general. 


Chapter  X. 
THE  CANAIi  AND  THE  TEAFnc  OE  AHEBICAN  RAILWAYS. 

There  are  several  ways  iu  which  the  isthmian  canal  uvax  aflect  the  traific  of  the  railways  serv- 
ing the  different  sections  of  the  United  States.  The  canal  will  introduce  a  new  and  competing 
route  for  trafiic  between  our  two  seaboards,  and  between  the  eastern  half  of  the  United  States  and 
Pacific  foreign  countries.     There  may  result  from  this  one  or  all  of  four  consequences: 

1.  The  railway  lines  competing  with  the  new  water  route  may  reduce  their  rates,  and  thus 
be  able  to  hold  their  traffic  against  the  new  competitor.  Should  this  be  the  result,  the  effect  of 
the  canal  upon  the  freight  of  the  railroads  might  be  small;  their  rates  would  be  reduced,  but  the 
traffic  secured  by  the  water  route  would  consist  of  new  business  developed  because  of  the  water 
route,  instead  of  traffic  diverted  from  the  other  transportation  lines. 

_  2.  The  waterway  may  divert  from  the  railway  lines  a  greater  or  less  share  of  their  through 
business.  Should  this  be  the  result  of  the  waterway,  the  railways  will  be  obliged  to  secure  a 
compensating  amount  of  new  business  or  suffer  a  shrinkage  in  their  traffic  as  the  result  of  the 
competition  of  the  waterway. 

3.  The  canal  may  bring  new  business  to  the  railways  by  making  them  collectors  and  distri- 
butors of  the  commodities  carried  between  our  eastern  and  western  seaboards  by  the  way  of  the 
Isthmus.  In  our  country  of  great  distances  and  of  diversified  industrial  activities,  generally  dis- 
tributed throughout  our  wide  territory,  the  origin  and  destination  of  but  a  small  portion  of  the 
water-borne  commerce  of  the  United  States  can  be  at  seaboard  points.  The  collection  and  distri- 
bution of  commodities  for  traffic  by  water  is  and  must  remain  mainly  the  work  of  the  railway 
line.  The  major  part  of  the  traffic  of  the  canal  must  be  rail  traffic  previous  to  or  subsequent  to 
being  handled  bv  the  ocean  Acsseis. 

4.  The  canal  may  make  possible  the  establishment  of  new  industries  along  the  railway  lines 
or  cause  an  expansion  of  activity  in  the  business  of  existing  plants,  and  thus  add  to  the  local 
traffic  of  the  railways.  In  general,  whatever  facilitates  commerce  establishes  the  most  important 
prerequisite  to  industrial  development. 

The  traffic  whose  routes  may  be  modified  by  the  opening  of  the  interoceanic  waterway  is: 

1,  That  originating  and  terminating  at  or  near  the  seaboard  points  of  our  eastern  and  western 
coasts.  The  traffic  between  the  territory  east  of  Buffalo  and  Pittsburg  and  that  west  of  the  Sierra 
Nevada  and  Cascade  Mountain  ranges  will  be  most  directly  subject  to  the  influence  of  the  new 
waterway. 

2.  The  trade  of  the  central  section  of  the  United  States  with  our  Pacific  slope  and  with 
foreign  Pacific  countries  will,  after  the  canal  has  been  opened,  be  able  to  leave  or  enter  the 
United  States  either  by  an  Atlantic,  a  Gulf,  or  a  Pacific  port.  If  it  passes  in  and  out  by  an 
Atlantic  or  Gulf  gateway,  it  will  be  canal  traffic;  if  by  a  Pacific  port,  it  will  not. 

CONCERNING    THE    STATISTICS   OF   TRANSCONTINENTAL    RAILWAY   TRAFFIC. 

Statistics  are  not  kept  of  the  traffic  which  the  railways  now  carrv  between  the  Atlantic  and 
Pacific  sections  of  the  United  States  and  between  the  Pacific  and  central  parts  of  the  country— 
the  rail  traffic  that  would  be  subject  to  canal  competition  were  the  waterway  now  in  use.  Some 
years  ago  the  Transcontinental  Freight  Bureau,  whose  offices  are  in  Saii  Francisco,  compiled 
figures  of  the  through  business  of  the  transcontinental  lines,  but  the  chief  of  that  bureau  reports: 

This  office  has  compiled  no  statistics  whatever  for  several  years  past,  neither  has  it  been  furnished  with  any 
reports  of  the  movements  of  business. 

The  managing  editor  of  Poor's  Manual  of  Railways  says: 

This  matter  [the  statistics  of  transcontinental  railway  traffic]  has  been  the  subject  of  inquiry  for  some  timp, 
and  without  any  result. 

The  officials  of  the  Pacific  railways  who  were  conferred  with  in  regard  to  the  volume  of 
business  that  would  be  affected  by  the  canal  were  unable  to  supply  the  information.  The  traffic 
manager  of  one  of  the  lines  reported: 

So  far  as  our  line  is  concerned,  would  say  that  we  have  virtually  discontinued  compiling  statistics  of  this  nature, 
finding  after  many  years'  experience  that  the  expense  incurred  in  compiling  these  figures  was  unwarranted. 


280  P.-ySTAMA  CANAL  TRAFFIC   AND   TOLLS. 

One  of  the  Pacific  railway  companies  furnished  the  Canal  Commission  with  a  statement  of 
the  tonnage  east  and  west  hound  during-  1899  for  each  of  the  important  commodities  comjDrising 
its  total  through  traffic.  By  through  traflic  was  meant  that  originating  anywhere  on  the  lines  of 
the  company  and  turned  over  l)y  the  company  to  some  connecting  railroad;  also  the  freight 
received  from  some  connecting  road  and  carried  to  some  point  along  its  own  system  of  lines. 
This  classified  statement  comprises  a  total  of  nearly  2,000,000  tons  of  freight  and  gives  an 
interesting  expose  of  the  nature  and  volume  of  business  being  done  by  this  important  Pacific 
railway  system.  The  figures,  however,  reveal  but  little  information  concerning  what  portion  of 
this  total  traflic  would  be  subject  to  canal  competition  were  the  isthmian  waterway  now  in  existence. 

While  information  concerning  the  present  volume  of  traflSc  of  the  Pacific  railroads  tliat  would 
be  subject  to  the  competition  of  an  isthmian  canal,  were  the  waterway  now  open,  would  be  inter- 
esting and  possess  some  value,  it  would  not  thi-ow  very  much  light  upon  the  manner  in  which  the 
business  of  the  transcontinental  railways  will  be  afl'ected  some  ten  or  fifteen  years  hence  by  the 
competition  of  an  interoceanic  canal.  I3etween  now  and  the  opening  of  the  canal  the  position  of 
the  railways  as  carriers  will  have  become  stronger,  and,  whatever  tlieir  business  may  be  at  the 
time  of  the  completion  of  the  watcrwa}^  their  policy  with  reference  to  the  retention  and  develop- 
ment of  their  business  will  doubtless  be  much  modified  by  the  inauguration  of  water  competition 
by  the  new  route. 

NATURE  OF  THE  COMPETITION  OF  THE  CANAL  WITH  THE  RAILWATS. 

In  addition  to  finding  it  impracticable  to  determine  the  amount  of  railway  business  that 
would  be  subject  to  competition  by  a  canal  were  it  in  existence  at  the  present  time,  it  has  like- 
wise been  impossible  to  draw  a  sharp  line  between  the  classes  of  commodities  that  would  be  liable 
to  move  by  water,  and  those  that  will  move  by  I'ail  after  both  agencies  have  become  available  to 
the  shipper.  An  intelligent  railway  official  replied  in  response  to  the  question;  What  kinds  of 
traffic  would  be  diverted  from  the  railways  to  the  canal  ? — 

All  kinds  of  traffic  would  be  diverted  except  that  which  is  perishable  or  which  demanded  disi^atch,  unless  the 
railroads  met  the  competition  of  the  canal  by  a  reduction  in  rates. 

Similar  opinions  were  expressed  by  several  other  railway  officials  who  were  conferred  with. 

It  seems  probable  that  the  competition  of  the  canal  route  will  not  be  confined  entirely  to  the 
bulkier  commodities  of  compai'atively  low  value  per  unit  of  weight  or  bulk — articles  universally 
recognized  to  be  especially  adapted  to  water  transportation — ^but  that  the  isthmian  route  will  be 
available  for  the  shipment  of  practically  all  articles  except  those  whose  perishable  nature  or 
whose  unusually  high  value  demand  a  quick  service  and  a  prompt  delivery.  The  distance 
between  our  two  seaboards  by  the  isthmian  canal  will  be  about  5,000  nautical  miles  and  the  time 
required  to  make  the  run  wiU  be  about  three  weeks  for  the  slow  fi-eight  steamers  of  10  knots  an 
hour,  and  about  two  weeks  for  the  15-knot  vessel.  The  ordinary  freight  service  of  the  railroads 
will  be  only  a  few  day's  shorter  than  the  service  by  the  faster  steamers  using  the  water  route. 

At  the  present  time  the  American-Hawaiian  Steamship  Company,  which  is  running  steamers 
between  New  York  and  San  Francisco  through  the  Straits  of  Magellan,  is  carrying  a  large 
variety  of  commodities.  The  time  required  for  the  passage  between  the  two  seaboards  by  this 
route  is  from  sixty  to  sixty-three  days,  but  even  this  length  of  time  does  not  restrict  the  freight 
to  a  limited  number  of  articles. 

On  the  other  hand,  the  practice  of  a  New  York  firm  that  manufactures  a  large  quantity  of 
structural  steel  and  ii'on  work  for  buildings  and  bridges,  and  all  classes  of  ornamental  steel  and 
iron,  shows  that  heav}'  freight  must  frequently  be  shipped  by  the  quickest  route.     The  firm  states: 

It  costs  about  §8  per  ton  to  ship  from  New  York  to  the  Hawaiian  Islands  around  the  Horn,  $12  per  ton  to  send 
the  freight  by  way  of  Panama  and  San  Francisco  to  Honolulu,  and  about  ?19  per  ton  to  ship  across  the  United  States 
by  rail  to  San  Francisco  or  Vancouver  and  thence  to  Honolulu.  The  first  way  of  shipping  takes  about  four  to  iive 
months;  the  second  way  of  shipping  about  three  months,  and  the  third  way  of  shipping  takes  at  least  two  months. 
The  element  of  time  very  often  enters  into  the  question  of  whether  it  is  possible  to  erect  buildings  in  the  time  for 
the  requirements,  and  often  parties  are  compelled  to  ship  by  the  most  expensive  lines  in  order  to  gain  time.  In  fact, 
probably  seven  or  eight  thousand  tons  of  materials  will  be  shipped  by  us  in  this  season  (1900)  via  the  trauscontinental 
lines,  and  only  two  or  three  thousand  tons  around  the  Horn. 

When  the  canal  has  been  opened  the  railway's  will  not  permit  their  traffic  to  be  taken  away 
from  them  if  they  can  hold  it,  and  they  will  unquestionably  so  adjust  their  business  as  to  retain 
the  maximum  amount  of  business.  It  is  the  belief  of  many  railway  officials  that  they  will  be  able 
to  hold  most  of  their  traffic  against  water  competition.  Whether  that  is  so  or  not,  is  not  ju-t 
now  under  consideration,  the  present  purpose  being  to  illustrate  the  nature  and  extent  of  the 
competition  that  the  opening  of  the  canal  will  inaugurate.  The  coiupetition  will  be  keen  and 
will  not  be  restricted  to  a  limited  number  of  commodities. 


PiySTAMA  CAN.IL  TRAFFIC   AND   TOLLS.  281 

THE  CANAL  AND  THE  TRAFFIC  OF  THE  ATLANTIC  ROADS. 

From  the  nature  of  the  subject  under  discussion  the  treatment  can  not  be  statistical.  The 
only  bases  upon  which  to  rest  conclusions  are  theoretical  analysis  and  the  opinions  of  traffic 
experts.  The  main  purpose  of  the  following  pages  will  be  to  present  impartially  the  views  of 
transportation  experts  whose  opinions  are  worthy  of  consideration.  Several  officials  of  the 
Atlantic  lines  were  asked  the  following  question:  "  Will  the  canal  promote  the  commerce  and 
industries  of  the  Atlantic  slope  in  such  a  way  as  to  give  the  railway  lines  to  the  Atlantic  a  larger 
traffic  in  coal,  iron  and  steel  manufactures,  machinery,  and  other  commodities?" 

Two  traffic  managers  of  the  Atlantic  railroads  handling  the  largest  volume  of  freight  expressed 
the  opinion  that  the  opening  of  the  canal  by  giving  the  American  manufactures  readier  access  to 
western  South  America  and  the  Far  East  would  largely  increase  the  exports  of  manufactured 
commodities.  The  major  share  of  the  manufacturing  done  in  the  United  States  is  carried  on 
within  the  territory  of  the  lines  leading  to  the  North  Atlantic  ports;  and  those  roads,  accord- 
ingly, expect  to  secure  a  greater  volume  of  traffic  when  the  canal  has  become  available.  It  was 
said  that  the  amount  of  freight  that  now  moves  from  seaboard  to  seaboard  by  rail  is  compara- 
tively small;  consequently  the  trunk  lines  to  the  Atlantic  will  receive  more  than  they  will  lose 
from  the  operation  of  the  isthmian  waterway.  Much  the  same  view  was  expressed  by  a  traffic 
manager  of  one  of  the  Pacific  railways. 

Some  railway  officials,  particularly  those  whose  roads  lead  to  the  Gulf  ports,  believe  that 
one  effect  of  the  canal  on  the  railway  traffic  in  the  United  States  will  be  to  divert  a  considerable 
share  of  the  business  at  present  done  through  the  Atlantic  ports  to  the  cities  situated  on  the 
Gulf.  This  view,  however,  seems  not  to  be  shared  by  the  officials  of  the  North  Atlantic  trunk 
lines,  for  the  reason  that  the  railway  lines  to  the  Atlantic  are  shorter,  from  points  east  of  .Chi- 
cago and  north  of  Kentucky  and  Virginia,  than  those  to  the  Gulf  are,  and  for  the  reason  that  the 
ocean  rates  from  Atlantic  ports  to  the  Pacific  coast  of  the  United  States  and  the  foreign  Pacific 
countries  will  be  practically  the  same  as  those  from  Gulf  ports. 

Officials  of  the  Atlantic  lines  were  also  asked  whether  "one  result  of  the  canal  will  be  to 
cause  a  larger  share  of  total  imports  of  the  United  States  to  enter  the  country  through  the  Gulf 
ports;"  and  whether  "the  canal  will  divert  to  the  Gulf  gateways  imports  that  would  otherwise 
enter  through  the  Atlantic  ports."  The  opinion  seemed  to  be  that  the  Atlantic  lines  will  be  able 
to  retain  their  present  strong  position  in  the  import  traffic,  in  competition  with  the  Gulf  lines, 
partly  because  most  of  the  expoi-t  business  will  continue  to  be  handled  at  the  Atlantic.  Both 
the  Atlantic  and  Gulf  roads  load  light  from  the  seaboard  to  interior  points,  the  heavier  volume 
of  traffic  being  outbound.  The  North  Atlantic  ports  have  a  much  larger  ship  tonnage  at  their 
service  than  the  Gulf  cities  now  have  or  will  secure.  The  northeastern  section  of  the  United 
States,  being  the  most  im{X)rtant  manufacturing  region,  will  continue  to  be  the  chief  importing 
section.  Thus,  while  it  was  believed  that  the  imports  by  way  of  the  Gulf  cities  will  probably 
be  larger  after  the  canal  has  been  constructed  than  they  can  be  before  that  event,  it  was  not 
thought  that  this  larger  trade  would  be  secured  by  drawing  traffic  awaj'  from  the  North  Atlantic 
cities  and  the  railroads  serving  them. 

Another  question  asked  the  officials  of  the  North  Atlantic  lines  was  whether  "the  roads  to 
the  Atlantic  will  exchange  less  traffic  with  the  Pacific  lines  as  the  result  of  the  canal."  The 
replies  indicated  that  the  Atlantic  lines  did  not  expect  the  canal  to  have  the  effect  of  reducing  the 
volume  of  business  exchanged  between  Atlantic  lines  and  Pacific  roads.  The  railways  will  not 
permit  their  business  to  be  taken  away  without  an  effort  to  retain  it,  and  wherever  possible 
arrangements  will  be  made  for  transcontinental  shipments  on  through  bills  of  lading  to  the  west 
coa.st  of  the  United  States  and  to  countries  beyond.  The  present  volume  of  business  exchanged 
between  the  Atlantic  and  Pacific  roads  is  comparatively  small.  It  will  not  be  less  after  the  canal 
has  been  put  into  operation. 

While  the  officials  of  the  eastern  roads  are  by  no  means  unanimous  in  their  opinions,  the 
foregoing  statement  of  their  opinions  is  believed  to  represent  fairly  their  views. 

THE    CANAL   AND   THE    TRAFFIC   OF   THE    GULF   ROADS. 

_  It  seems  uncertain  how  much  of  the  import  and  export  business  of  the  section  north  of  the 
Ohio  and  east  of  the  Mississippi  will  be  done  by  way  of  the  Gulf  ports;  the  testimony  is  not 
unanimous.  Probably  some  of  the  trade  of  this  region  will  be  handled  by  the  Gulf  ports;  and 
the  competition  of  the  Gulf  lines  will  affect  the  rates  on  a  largo  share  of  the  business  that  is 
handled  by  the  Atlantic  roads  and  jjorts.  The  opening  of  the  isthmian  canal  will  give  the  people 
of  the  States  north  of  the  Ohio  and  the  Missouri  rivers  the  choice  of  three  routes  for  their  trade 
with  our  west  coast  and  Pacific  countries,  and  the  volume  of  their  trade  will  be  a  prize  for  which 
the  Atlantic,  the  Gulf,  and  the  Pacific  lines  may  be  expected  to  strive  with  zeal. 


282  PAKlilA  CANAL  TRAFFIC  AND  TOLLS. 

There  can  be  little  uucertaint\-  as  to  the  general  effect  of  the  canal  upon  the  traffic  of  the 
railways  located  in  the  Southern  and  Southwestern  States.  The  railways  serving  the  Southern 
States  will  have  the  .same  measure  of  benefits  that  may  come  to  the  industries  and  trade  of  the 
region.  The  canal  can  take  no  business  away  from  the  South  or  the  southern  railways.  It  can 
onh'  increase  existing  railway  business  and  draw  new  industries  and  trade  to  the  section. 

The  import  business  handled  by  the  Gulf  lines  is  small  at  present,  and  it  will  doubtless 
always  remain  less  than  the  volume  of  outbound  traffic,  although  the  opening  of  the  canal  may 
be  expected  to  increase  the  amount  of  inbound  business  handled  by  the  Gulf  cities.  The  officials 
of  the  Gulf  lines  who  were  consulted  believe  that  the  canal  will  cause  a  moderate  though  not  a 
large  volume  of  imports  to  enter  through  the  Gulf  cities. 

THE    CAXAL   AND    THE    TRAFFIC    OF   THE    RAILWAYS   OF   THE    CENTRAL   WEST. 

In  that  large  stretch  of  country  north  of  the  Ohio  and  Missouri  rivers  and  west  of  Chicago, 
that  is  to  say,  in  the  region  west  of  the  territory  served  by  the  trunk  lines  to  the  Atlantic  Ocean 
and  north  of  the  States  occupied  by  the  railway  systems  terminating  at.  Gulf  ports,  there  is  a 
network  of  important  railways  having  a  large  volume  of  traffic.  Until  recently  the  traffic  of 
these  railways  in  the  Central  West  consisted  almost  exclusively  of  agricultural  products,  but  the 
diversification  of  industries  in  that  part  of  the  United  States  is  now  proceeding  with  great  rapid- 
ity. There  is  an  immense  volume  of  export  business,  the  major  part  of  which  is  now  handled 
by  the  lines  leading  to  the  Atlantic  Ocean,  although  latterly  the  lines  to  the  Gulf  have  handled  a 
portion  of  this  traffic,  and  the  volume  of  business  handled  from  the  Central  "West  by  the  trans- 
continental railwa^-s  has  grown  to  considerable  dimensions.  The  imports  brought  into  the  Central 
West  from  foreign  countries  come  mainly  by  way  of  the  Atlantic  gateways.  A  certain  amount 
of  fruit  comes  through  the  Gulf  cities,  and  an  appreciable  volume  of  oriental  goods  is  brought 
in  by  way  of  Pacific  ports. 

As  to  the  effects  of  the  canal  upon  the  railwa}-  traffic  in  the  Central  "West  opinions  are  not 
unanimous.  Manufacturers  and  most,  though  not  all  railway  officials,  anticipate  that  the  canal 
will  develop  a  large  volume  of  new  business.  The  views  of  those  railway  officials  who  expect 
but  .small  results  from  the  canal  were  well  summarized  by  a  prominent  official  of  one  of  the 
strongest  roads  of  the  Central  West — a  system  that  ramifies  in  seven  States.  He  said  that  inas- 
much as  the  industries  of  the  territory  served  liy  this  road  were  chiefly  agricultural,  no  large 
volume  of  traffic  would  ever  be  exchanged  with  the  agricultural  States  of  our  own  Pacific  slope. 
This  gentleman  said  that  if  the  canal  were  to  affect  the  business  of  railroads  situated  as  his  .sys- 
tem is,  it  must  be  accomplished  bj-  the  creation  of  manufacturing  industries,  and  it  was  his  opin- 
ion that  the  volume  of  this  kind  of  business  woukl  not  and  could  not  become  very  large.  If  the 
canal  should  divert  this  new  business  from  the  Pacific  roads  to  the  Atlantic  trunk  lines,  or  to  the 
roads  leading  to  the  Gulf,  that  result  would  not  affect  the  roads  of  the  Central  West,  because  this 
diversion  would  do  little  more  than  to  change  the  direction  in  which  the  traffic  was  hauled  by  his 
and  similarly  situated  roads.  Believing  that  the  development  of  manufacture  would  be  limited 
to  small  pi'oportions,  and  that  any  diversion  of  traffic  would  simply  change  the  direction  in  which 
the  outbound  and  inbound  business  was  handled,  it  was  the  opinion  of  this  gentleman  that  the 
canal  could  not  affect  the  business  of  his  railwaj-  and  other  similarly  situated  systems  to  any  large 
extent. 

The  traffic  manager  of  another  equally  strong  railway  S3-stem  in  the  Central  "\A'est  was  of  the 
opinion  that  an  isthmian  canal  would  help  build  up  the  upper  Mississippi  Valley  and  be  a  benefit 
to  the  railways  of  that  section.  As  a  general  proof  of  this  proposition  he  cited  the  Lake  Shore 
and  ^lichigan  Southern  Railway  as  one  that  was  particularly  subject  to  water  competition,  and 
which  was  nevertheless  one  of  the  most  profitable  freight  roads  in  the  United  States.  The  canal, 
he  said  in  substance,  will  doubtless  take  from  the  raih'oads  some  shipments  they  would  otherwise 
secure,  but  by  increasing  the  total  volume  of  business,  by  causing  the  centers  of  distribution  and 
manufacturing  to  grow  and  multiply,  and  population  to  increase,  the  water  route  will  add  to  the 
traffic  seeking  transportation  by  the  railroads.  This  gentleman  believes  that  water  competition 
is  a  help  instead  of  an  injury  to  the  railroad,  because  of  the  larger  industrial  development  made 
possible  by  the  cheaper  water  transportation.  He  called  attention  to  some  of  the  large  wholesale 
and  jobbing  houses  in  St.  Louis,  and  said  that  the  prominence  of  that  city  as  a  wholesale  jobl)ing 
center  was  ])artly  due  to  the  cheap  transportation  from  the  East  by  way  of  the  Gulf  and  the 
Mississippi  River.  This  official  also  laid  down  the  proposition  that  the  best  conditions  for  a  heavy 
railway  traffic  are  produced  by  the  existence  of  a  large  number  of  manufacturing  and  distributing 
centers.  Some  railway  officials,  he  said,  seem  to  believe  it  better  for  the  railroads  to  favor  the 
concentration  of  business  in  a  few  large  centers;  but  such  a  polic}'  experience  had  shown  would 
restrict  the  possible  development  of  railway  traffic  within  unnecessarily  narrow  limits.  Believing 
that  the  canal  will  develop  the  territory,  diversify  and  distribute  industry,  he  was  of  the  opinion 
that  the  effect  of  the  waterway  upon  the  bitsiness  of  the  railway  lines  situated  in  the  Central  West 
would  be  beneficial. 


PANMIA  CANAL  TRAFFIC   AND   TOLLS.  283 

While  these  views  regarding  the  efficacy  of  water  competition  to  develop  the  industries  of 
the  interior  part  of  the  United  States,  and  to  increase  the  traffic  of  the  railways  of  that  part  of  the 
country,  are  not  shared  by  all  the  railway  officials  that  were  consulted,  the  history  of  transporta- 
tion, the  evidence  afforded  by  a  study  of  business  conditions  in  different  jmrts  of  the  United 
States,  and  the  opinions  entertained  by  the  manufacturers  and  large  shippers  of  commodities, 
tend  to  substantiate  the  accuracy  of  the  position  taken  In-  those  railway'  officials,  who  expect  their 
lines  to  profit  rather  than  sufter  injury  bj^  the  opening  of  the  proposed  isthmian  canal.  No  one 
can  visit  the  great  industrial  centers  of  the  central  West,  study  the  vast  resources  of  the  States 
of  that  section,  and  acquaint  himself  with  the  activities  of  the  business  men  without  feeling 
certain  that  increased  transportation  facilities  are  certain  to  result  in  a  very  large  expansion  of 
industry.  The  history  of  the  great  central  West  shows  that  the  measure  of  its  industrial  devel- 
opment has  always  been  the  measure  of  its  transportation  facilities.  New  facilities  mean  new 
business;  and  this  is  more  true  to-day  than  it  was  twenty -live  or  even  ten  years  ago. 

EFFECT    OF   THE    CANAL    UPON    THE    TRAFFIC   OF   THE    PACIFIC    RAILWAYS. 

The  railway  s^'stems  that  will  feel  the  competition  of  the  new  water  route  across  the  Isthmus 
most  severely  are  those  whose  lines  connect  the  Mississippi  Valley  with  the  Pacific  coast.  This 
competition  may  apply  to  nearly  all  kinds  of  traffic.  The  only  articles  wholly  exempt  will  be  the 
perishable  fruits  and  those  goods  of  high  value  sent  by  express  and  as  fast  freight.  The  more 
southerly  Pacific  lines  will  feel  this  competition  more  keenly  than  will  those  situated  farther 
north.  The  northern  lines,  moreover,  will  be  able  to  meet  the  canal  competition  more  readily 
than  will  those  farther  south,  because  the  territory  crossed  by  the  southern  roads  includes  such 
a  wide  belt  of  relatively  unproductive  country.  The  northern  half  of  the  Cordilleran  highland 
is  not  only  rich  in  mineral  resources,  but  is  also  capable  of  raising  considerable  quantities  of 
agricultural  products.  Li  some  parts  of  this  region  irrigation  is  necessary  and  in  others  not. 
Tlie  southern  part  of  this  great  highland,  however,  is  capable  of  but  a  limited  development.  The 
mineral  resources  are  less  extensive.  U'iierever  agriculture  is  possible  it  is  dependent  upon 
irrigation,  and  the  irrigable  areas  arc  very  limited.  Thus  the  northern  lines  have  a  territory 
capable  of  producing  a  much  larger  amount  of  local  traffic  than  can  be  secured  by  the  southern 
lines  from  the  country  across  which  they  are  located. 

Traffic  officials  of  the  three  southern  lines  to  the  Pacific  stated  their  views  with  frankness 
and  in  some  detail.  The  opinions  of  these  gentlemen,  however,  differ  largely.  The  views  of  those 
who  believe  that  the  effect  of  the  canal  will  not  be  to  create  business,  Init  that  it  will  compel  a 
large  I'eduction  in  railway  rates  without  affording  compensation  to  the  railroads,  were  fully  stated 
by  an  official  in  charge  of  the  traffic  business  of  one  of  the  Pacific  roads.     He  said  iii  substance: 

During  the  early  years  of  the  transcontinental  railways  the  traffic  from  the  Atlantic  section  of  the  United  States 
to  the  Pacific  section  was  drawn  almost  entirely  from  the  Atlantic  seaboard.  Before  the  railways  were  built  the 
traffic  was  all  handled  by  the  sea  route,  and  the  costs  of  transportation  from  the  interior  to  the  ocean  were  such  that 
the  traffic  was  drawn  almost  entirely  from  the  seaboard  cities.  The  effect  of  the  transcontinental  railways  has  been 
to  cause  a  large  part — three-fourths,  it  is  estimated — of  the  business  carried  across  the  country  westward  by  the 
transcontinental  railways,  to  originate  in  and  west  of  Pittsburg.  The  effect  of  the  canal  will  be  to  tend  to  cause 
traffic  to  originate  nearer  the  Atlantic  seaboard  again,  and  thus  affect  deleteriously  not  only  the  business  of  the  trans- 
continental railways,  but  the  general  industries  of  the  middle  section  of  the  United  States. 

The  traffic  of  a  canal  will  consist  of  all  kinds  of  commodities  except  those  of  a  perishable  nature.  The  competi- 
tion of  the  waterway  with  the  railway  lines  will  be  very  severe,  but  the  raihvays  will  not  permit  their  traffic  to  be 
taken  away  from  them  by  the  canal.  The  competition  will  necessitate  a  reduction  in  rates — such  a  reduction  as  may 
throw  the  transcontinental  raihvays  into  insolvency  and  require  the  scaling  down  of  capital.  The  railways  will 
continue  in  business,  however,  after  the  owners  of  the  property  have  suffered  a  great  reduction  in  the  value  of  their 
holdings. 

As  far  as  the  export  trade  across  the  Pacific  is  concerned,  the  canal  would  be  an  injury  to  the  Pacific  coast  sea- 
board, because  the  export  traffic  very  largely  originates  in  the  central  and  eastern  jiart  of  the  United  States.  That 
traffic  would  be  carried  directly  to  tlie  Eastern  and  South  American  countries  by  way  of  the  canal. 

The  establishment  of  industries  along  the  transcontinental  railway  lines  as  a  result  of  the  opening  of  the  canal 
will  be  possible  only  to  a  small  extent  by  any  of  the  transcontinental  railways  south  of  the  Northern  Pacific.  The 
Southern  roads  cross  such  a  long  stretch  of  arid  country  that  general  industries  can  not  be  developed  except  relatively 
near  the  termini.  California  and  the  Pacific  coast  generally  do  not  constitute  a  manufacturing  section,  nor  will  they 
become  such. 

Before  criticising  the  remarks  contained  in  the  foregoing  statements,  the  views  of  a  traffic 
manager  of  one  other  Pacific  line  may  be  stated.  This  traffic  manager  says  that  the  canal  will 
compel  a  reduction  in  rail  rates  to  Pacific  terminal  points  below  the  charges  that  would  otherwise 
prevail,  and  that  the  adjustment  of  charges  will  probably  result  in  the  establishment  of  blanket 
or  identical  rates  between  Pacific  ports  and  all  points  in  the  central  and  eastern  part  of  the  United 
Stat(  5.  The  effect  of  this  will  be  to  take  from  the  cities  in  the  central  part  of  the  United  States 
the  advantages  which  they  have  over  the  Eastern  cities  for  trade  with  the  Pacific  coast.  This 
official  does  not  believe  that  the  canal  will  be  of  much  help  to  California,  because  the  trade  in 


28J  P^i^'^UIA  C.1XAL   TRAFFIC   .iND   TOLLS. 

grain,  which  is  and  will  always  be  the  principal  item  of  export,  is  going-  to  be  carried  on  less  with 
Europe  and  more  and  more  with  China  and  Japan,  where  the  consumption  of  wheat  is  even  now 
takino-  the  place  of  rice.  He  believes  that  the  surplus  grain  products  of  the  Pacific  coast  will  be 
milled  and  shipped  to  the  Orient,  and  that  the  canal  will  not  be  of  benefit  to  this  industry.  Con- 
cerning the  general  efiects  of  a  canal  upon  the  commerce  and  industry  of  the  United  States  as  a 
whole,  this  traffic  official  is  more  optimistic  than  the  others  above  quoted.  He  says,  and  very 
accurately,  that  the  transportation  business  of  this  country'  is  so  organized  that  if  touched  at  one 
point  the  efl'ect  is  felt  everywhere.  The  opening  of  the  canal  will  afford  a  new  transportation 
agent  of  importance,  and  while  it  will  compel  an  adjustment  of  business,  a  revision,  and  in  some 
cases  a  reduction,  of  rates,  the  railroads  will  nevertheless  find  business  to  do,  and  the  travel  and 
traffic  of  this  country  and  the  Inisiness  done  at  home  and  abroad  will  so  increase  as  ultimately  to 
make  both  the  railways  and  the  canal  a  necessity.  The  construction  of  the  canal  was  regarded 
by  this  traffic  official  as  inevitable,  as  something  which  the  American  people  have  decided  to  be 
necessary  for  naval  reasons  and  for  the  purpose  of  securing  the  quickest  and  best  transportation 
facilities  for  their  domestic  and  foreign  trade.  The  transcontinental  railways,  in  his  opinion, 
will  temporarily  suS'er  from  the  reduction  in  rates,  but  the  growth  of  the  country  will  be  such 
that  twenty-five  j'ears  from  now  the  railways  will  have  nothing  to  fear  from  the  canal. 

In  the  opinion  of  the  Pacific  railway  officials  above  quoted,  and  of  others,  the  isthmian  canal 
will  be  an  active  and  rate-controlling  competitor.  That  this  is  true  will  hardly  be  questioned, 
and  if  the  canal  can  not  compensate  the  railways  with  a  larger  volume  of  business  they  will  not 
share  witli  the  producing  and  manufacturing  interests  in  the  benefits  accomplished  by  the  water 
route.  "Whether  the  canal  will  give  the  Pacific  railroads  a  larger  trafSc  than  they  would 
otherwise  have  is  partly  a  matter  of  judgment  and  partly  a  question  of  safe  deduction  from  past 
experience. 

The  belief  entertained  by  one  of  the  officials  above  referred  to,  that  the  isthmian  canal  will 
draw  traffic  and  the  centers  of  industry  back  from  the  central  section  of  the  United  States  to  the 
Eastern  States,  is  based  on  an  inadequate  conception  of  the  industi-ial  strength  of  the  Central 
States,  as  compared  with  the  Eastern.  The  Central  States  possess  vast  stores  of  coal,  iron,  and 
timber,  and  these  and  their  other  natural  resources  are  causing  the  population  and  industrial 
activities  of  our  country  to  become  generally  distributed.  The  railways  that  serve  the  Central 
States  are  wisely  fostering  this  teiKlcnc  y.  an<l  these  railway  systems  are  among  the  strongest  and 
most  efficient  of  any  in  the  United  States.  After  ten  or  twelve  years  more  of  progress  on  the 
part  of  the  industries  and  railway  systems  of  the  central  portion  of  the  country,  thej'  will  be 
quite  secure  against  defeat  from  competition  with  the  East.  Indeed,  the  canal  will  so  facilitate 
the  foreign  trade  of  the  Central  States  as  to  make  them  stronger  than  they  now  are  as  compared 
with  the  Eastern  section. 

It  is  asserted  by  one  of  the  railway  officials  whose  opinions  are  given  above,  that  the  isthmian 
canal  will  injure  the  Pacific  States  by  diverting  from  them  the  imports  destined  for  points  east  of 
the  Rock}'  Mountains.  The  present  volume  of  these  imports  by  way  of  the  Pacific  coast  cities, 
however,  is  small  and  will  probably  remain  so.  Without  an  isthmian  canal  the  goods  brought 
in  from  foreign  Pacific  countries  will  be  imported  into  the  eastern  half  of  the  United  States,  as 
most  of  them  now  are,  by  way  of  New  York  and  other  Atlantic  ports.  The  importations  of  teas, 
silks,  mattings,  and  curios  by  way  of  our  Pacific  ports  and  the  transcontinental  railroads  is 
increasing,  it  is  true,  and  may  be  expected  to  grow  in  volume  as  the  costs  of  railway  transporta- 
tion decline.  After  the  canal  route  has  been  opened  the  railways  will  be  obliged  to  share  this 
traffic  with  the  steamers  using  the  canal.  Here  again,  however,  it  is  probable  that  additional 
facilities  for  transportation  will  be  accompanied  by  a  larger  demand  for  commodities  and  an 
increased  traffic  for  the  old  routes  as  well  as  the  new.  If  the  isthmian  canal  produces  any 
changes  of  importance,  one  eliect  will  be  to  give  greater  prosperity  to  the  western  third  of  the 
United  States,  where  the  Pacific  railroads  must  always  perform  the  transportation  service,  to 
stimulate  the  growth  of  population  there,  and  to  increase  the  consumption  of  such  articles  as  are 
imported  from  the  Orient. 

One  of  the  witnesses  above  quoted  thinks  that  the  wheat  exported  from  the  Pacific  coast 
will,  within  a  few  years,  be  sent  entirely  to  Pacific  instead  of  Atlantic  markets.  There  is  a 
growing  trans-Pacific  trade  in  flour  and  an  increasing  quantity  is  required  at  home  by  the  grow- 
ing population  of  the  Rocky  Mountain  and  Pacific  slope  States.  This,  moreover,  is  being  accom- 
panied by  a  diversification  of  agriculture  and  the  production  of  other  cereal  crops  and  of  fruits 
and  vegetables.  Nevertheless,  the  western  section,  particularly  the  States  of  Washington  and 
Oregon,  may  be  expected  to  remain  lai'ge  exporters  of  wheat  and  also  of  barley  to  Atlantic 
countries  for  several  decades  to  come. 


P.\XAilA  CAJSTAL  TRAFFIC   AM)   TOLLS.  285 

CONCLUSIONS. 

The  competition  of  the  canal  will  affect,  first,  the  volume  and  rates  of  the  through  business 
of  the  Pacific  railroads,  and  secondlj',  the  amount  of  their  local  traffic.  At  the  beginning  of 
their  existence  these  railways  depended  almost  entire Ij^  upon  their  through  traffic;  but  their  chief 
aim  throughout  their  history  has  been  to  increase  the  local  business,  which  is  always  more  profita- 
ble than  the  through  traffic;  and  although  the  great  stretch  of  country  crossed  by  them  is  still  in 
the  infancy  of  its  iudustiial  development,  the  local  traffic  of  some,  if  not  all,  of  the  Pacific  roads 
has  already  become  of  chief  importance.  A  vice-president  of  one  of  tlie  I'ailway  systems  states 
that  since  1S93  "  the  increase  in  business  of  the  transcontinental  lines  has  not  come  from  the  sea- 
ports, but  from  the  development  of  the  intermediate  country."  The  canal  can  certainly  in  no 
wise  check  the  growth  of  this  local  traffic,  and  the  evidence  strongh'  supports  the  belief  enter- 
tained by  many  persons  that  the  canal  will  assist  largely  in  the  industrial  expansion  of  the  terri- 
tory served  by  the  Pacific  railways. 

If  this  be  true,  the  proximate  effect  of  the  isthmian  canal  in  compelling  a  reduction  and 
readjustment  of  the  rates,  on  the  share  of  the  transcontinental  railway  business  that  will  be 
subject  to  the  competition  of  the  new  water  route,  will  be  more  than  ofl'set  by  the  ultimate  and 
not  distant  expansion  of  the  through  and  local  traffic,  that  must  necessarily  be  handled  by  rail. 
It  seems  probable  that  the  increase  in  the  population  of  the  country,  and  the  growth  in  our  home 
and  foreign  trade,  will  early  demonstrate  the  need  of  the  transporation  service  of  both  the  canal 
and  the  railways. 


Chapter  XI. 

THE  TRADE  AND  INDUSTRIES  OF  WESTERN  SOUTH  AMERICA  AND   THE  EFFECT  OF  THE 

CANAL,  UPON  THEM. 

The  benefits  of  an  isthmian  waterway  will  be  felt  in  varying  degrees  by  more  than  half  the 
countries  of  the  world.  In  some  regions  this  intinence  will  be  slight  and  indirect,  or  will  modify 
only  a  small  part  of  the  trade,  while  in  others  it  will  affect  the  greater  part  of  the  commerce  and 
will  work  changes  that  will  be  almost  revolutionary.  The  United  States  will  obtain  the  most 
direct  and  far-reaching  results  from  the  canal;  South'America  will  probably  be  the  second  greatest 
recipient  of  its  advantages. 

AREA   AND   POPULATION    COMPARED   WITH   NORTH   AMERICA. 

South  America  is  but  slightly  smaller  than  North  America.  It  is  wider  between  Pernambuco 
and  Guayaquil  than  the  United  States  is  between  Oregon  and  Maine,  and  is  long  enough  to  reach 
from  the  isthmian  canal  to  Baffin  Ba_v,  a  thousand  miles  beyond  the  southern  point  of  Greenland, 
yet  none  of  her  shores  are  frozen.  These  rather  surprising  dimensions  are  seen  more  clearly  by 
a  glance  at  the  globe,  which  will  correct  the  erroneous  impressions  that  flat  ma^js  make  by  exag- 
gerating the  size  of  countries  of  high  latitude  and  diminishing  the  area  of  equatorial  regions. 
Viewed  on  a  wall  map,  North  America  appears  much  larger  than  South  America,  when,  in 
reality,  there  is  but  slight  difference  in  the  area  of  the  continents.  By  drawing  a  map  on  the 
polyconic  projection,  as  has  been  done  in  Plate  75  accompanying  the  report  of  the  Commission, 
the  relative  areas  of  the  two  continents  can  be  shown. 


Massachusetts  with  its  irregular  shape  could  be  completely  hidden  away  bj^  being  put  down  in 
the  midst  of  the  unexplored  areas  of  the  great  forests  of  the  Amazon  Valley.  Although  large. 
South  America  does  not  have  a  greater  proportion  of  worthless  territory  than  have  most  of  the 
other  continents.  There  are  deserts  in  Peru  and  Chile,  and  mountain  wastes  and  swampy  forests 
in  the  center  of  the  continent;  but  these  areas  are  small  compared  with  the  unoccupiable  parts.of 
North  America.  Canada  and  Alaska,  comprising  a  third  of  the  continent,  are  largely  uninhabit- 
able because  of  the  cold  climate.  The  plains  and  plateaus  west  of  the  Missouri  River  embrace  a 
third  of  the  territory  of  the  United  States,  that  can  be  only  sparsely  inhabited  because  of  its 
aridity.     The  proportion  of  arid  land  in  Mexico  is  greater  than  in  the  United  States. 

In  South  America  the  present  sparse  population  has  but  touched  the  resources  that  can  sup- 
port c<)mmonwealths  as  populous  as  those  of  Europe  when  immigration  and  settlement  shall  have 
occupied  the  country.  The  present  sparseness  of  population  and  backward  development  of  South 
America  are  due  to  three  causes.  The  first  is  the  difference  in  character  of  the  races  inhabiting 
England  and  Spain — a  difference  as  marked  in  their  colonies  as  in  the  mother  countries.  Eng- 
land and  her  colonies  have  prospered,  while  Spain  and  her  dependencies  have  languished.  Had 
England,  not  Spain,  possessed  South  America  after  the  sixteenth  centurj',  the  continent  would 
now  be  more  highly  developed,  although  its  social  institutions  might  have  differed  from  those  of 
North  America,  as  the  result  of  climatic  dissimilarities. 

South  America's  sparse  population  is  furthermore  due  to  the  fact  that  Europe  has  not  yet 
needed  South  America  as  a  home  for  overcrowded  peoples.  Canada  is  still  giving  away  farms, 
the  United  States  has  scarcely  ceased  doing  the  same,  and  in  the  old-settled  commonwealths  of 
the  Eastern  and  Southern  States  of  our  countrj'  hardlj^  moi-e  than  half  of  the  available  area  is 
cultivated.  The  United  States  is  still  a  comparativel}^  empty  country.  The  emigrating  races  of 
Europe,  which  have  been  chiefly  tiie  Teutonic,  have  found  stable  and  friendly  governments, 
fellowship  of  race,  and  -familiar  climate  in  the  United  States,  Canada,  and  Australia.  These 
attractions  were  not  offered  by  South  America.  Settlement  there  was  impeded  by  the  tropical 
climate  of  a  large  part  of  the  continent,  and  by  the  fact  that  the  most  suitable  districts  for  white 
colonization  were  on  the  inland  plateaus,  separated  from  the  ocean  by  unhealthy  lowlands  which 


P.^T^IA  CANAL  TEiVFFIC  AND   TOLLS.  287 

must  be  crossed  by  railroads  before  comitiercial  relations  covdd  be  established  with  the  rest  of  the 
world.  Under  these  conditions  an  extensive  occupation  of  the  country  has  waited  for  corporate 
enterprises  to  provide  the  needed  transportatipn  facilities.  There  have  been  no  large  European 
emigrations  except  to  Ai-gentina  and  southern  Brazil,  where  the  climate  is  similar  to  that  of  the 
temperate  latitudes  of  North  America,  and  where  the  governments,  being  fairly  stable,  have 
pi'ovided  the  jjolitical  prerequisites  for  industrial  growth. 

THE    TRADE    ZONES   OF    SOUTH    AMERICA. 

In  discussing  the  industries  and  trade  of  South  America,  and  the  manner  in  which  they  will 
be  affected  by  an  isthmian  canal,  it  is  necessarj'  to  divide  the  continent  into  trade  zones.  The 
various  countries  do  not  form  a  satisfactory  division,  because  in  some  cases  two  or  three  adjoin- 
ing States  have  similar  climate,  resources,  and  trade  connections.  Nor  is  a  separation  of  the 
continent  into  zones  of  latitude  helpful,  because  very  dissimilar  regions  are  found  in  the  same 
latitude.  The  shape  of  the  continent  and  the  lack  of  internal  communication  make  it  necessary 
to  treat  the  Pacific  and  Atlantic  sections  separately,  and  each  of  these  sections  has  a  temperate 
and  a  tropic  division  calling- for  separate  treatment.  In  the  discussion  that  follows,  the  continent 
has  been  divided  into  (1)  the  Temperate  Pacific  section;  (2)  the  Tropic  Pacific  section;  (3)  the 
Temperate  Atlantic  section,  and  (-t)  the  Tropic  Atlantic  section.  The  political  divisions  com- 
prised in  each  section  are  shown  in  the  accompanying  map  of  South  America. 

From  the  standpoint  of  the  world's  trade,  the  Atlantic  sections  of  South  America  are  more 
important  than  the  Pacific  side,  but  as  regards  the  traflic  and  effects  of  an  isthmian  canal  the 
western  third  of  the  continent  is  of  greater  consequence.  The  effect  of  the  canal  on  the  trade 
of  the  Atlantic  region  will  be  slight,  but  on  the  Pacific  side  the  canal  will  change  the  routes  and 
in  some  measure  the  destination  and  origin  of  the  larger  part  of  its  foreign  commei'ce.  The 
references  to  the  Atlantic  sections  will  be  brief  in  the  following  discussions,  the  space  given  to 
the  four  trade  divisions  of  South  America  being  in  proportion  to  the  importance  of  the  canal 
to  the  economic  development  of  each. 

Western  South  America  will  be  considered  first.''  This  section  of  the  continent  includes  the 
Pacific  coastal  strip  and  also  the  Andean  plateau,  and  reaches  from  the  southern  limits  of  the 
habitable  part  of  the  tempei-ate  zone  northward  well  into  northern  tropical  latitudes.  The 
Republic  of  Chile,  in  the  temperate  zone,  is  as  large  in  area  as  our  New  England  and  middle 
Atlantic  States  with  Maryland  and  the  Virginias  added.  Northward  in  Peru  and  Bolivia  the 
ranges  of  the  Andes  broaden,  so  that  in  addition  to  the  coastal  plain,  often  CO  miles  across,  there 
is  an  extensive  plateau  a  thousand  miles  long  and  in  places  several  hundred  miles  wide.  On  this 
broad  highland  is  the  Titicaca  Basin,  with  a  system  of  rivers  flowing  into  a  lake  about  half  the 
size  of  Lake  Eric,  and  furnishing  hundreds  of  miles  of  navigable  waterways. 

INADEQUATE    TRANSPORTATION'    FACILITIES    OF    WESTERN    SOUTH    AMERICA. 

The  Pacific  frontage  of  South  America  has  more  than  double  the  population  and  area  of  our 
Pacific  coast  States  of  California,  Oregon,  and  Washington.  The  western  sections  of  the  two 
American  continents  are,  however,  very  differently  situated  commercially.  Our  Pacific  slope 
has  the  advantage  of  seven  transcontinental  railroads;  the  Pacific  coast  of  South  America  has  but 
one,  and  that  is  incomplete.  The  foreign  commerce,  and  to  a  large  extent  the  domestic  trade  of 
the  west  coast  of  South  America,  is  dependent  upon  inadequate  and  circuitous  water  transporta- 
tion. The  building  of  the  Panama  Railroad  has  been  of  comparativelj'  small  importance  to  the 
trade  of  South  America.  The  costs  of  transshipment  at  the  Isthmus  and  the  high  freight  rates 
charged,  limit  the  use  of  this  route  mainly  to  passenger  traflic  and  the  freighting  of  articles  that 
need  quick  transportation.  Cheaper  commodities  take  the  longer  route  around  the  continent. 
A  pi'osperous  industrial  growth  requires  transporting  agencies  that  can  profitably  and  cheaply 
move  such  commodities  as  coal,  iron  and  other  ores,  grain,  etc..  This  the  Panama  Railroad  can 
not  do,  and  such  commodities,  if  moved  at  all,  must  go  through  the  Straits  of  INIagellan  or  around 
the  Horn. 

The  great  distance  that  must  be  traversed  bj'  the  ship  passing  between  the  commercial 
countries  of  the  North  Atlantic  and  the  west  coast  of  South  America,  has  caused  the  commerce 
of  those  countries  until  recently  to  be  chiefly  dependent  upon  the  sailing  vessel.  The  introduc- 
tion of  regular  steam  connection  promises  better  transportation  facilities  for  the  future,  espe- 
cialh'  after  the  canal  shall  have  been  completed.  Callao,  Peru,  is  now  farther  by  steam  from 
New  York  than  is  the  South  Pole,  but  an  isthmian  canal  will  bring  the  city  1.000  miles  nearer  to 
New  York  by  steam  than  San  Francisco  will  then  be. 

«■  Consult  Plates  76,  77,  and  78,  upon  \vhich  are  located  the  places,  resources,  and  industries  mentioned  in  this 
•chapter. 


288  PAN.ULi  C'^VN.IL  TJRAFFIC  AJST)  TOLLS. 

The  present  difficulties  of  transportation  restrict  travel,  and  thus  prevent  the  people  of  the 
United  States  and  Europe  from  becoming  acquainted  with  the  jDeople  and  trade  conditions  of 
western  South  America.  Commercial  exchanges  prosper  only  when  knowledge  and  intimacy 
break  down  mistrust  and  reveal  the  commercial  needs  of  the  trading  nations. 

In  Pacific  South  America  generally,  as  in  other  Latin  American  countries,  the  difficulties  of 
inland  trausportiition  are  a  great  hindrance  to  industrial  and  commercial  progress.  Excepting  a 
few  lines  of  railroads,  there  are  practically  no  means  of  communication  in  western  South 
America  save  the  pack  mule.  This  state  of  afl'airs  makes  the  commerce  of  the  interior  districts 
similar  to  that  of  Europe  in  the  Middle  Ages,  when  international  trade  was  limited  to  silks  and 
spices  and  other  light  commodities  of  high  value,  that  could  be  carried  long  distances  by  caravan 
and  to  the  few  bulkier  articles  produced  along  the  seacoast  and  navigable  rivers.  The  inland 
districts  of  England,  France,  and  Germany  then  had  considerable  populations,  but  each  com- 
munity raised  its  own  food,  made  its  own  clothing,  and  knew  little  of  the  products  of  other 
countries.  The  improvements  that  have  transformed  the  European  countries  have  not  yet  had 
much  effect  upon  the  tropic  section  of  Pacific  South  America.  Onh'  a  small  proportion  of  the 
population  contributes  anything  to  the  foreign  trade.  The  rest  live  in  isolated  communities, 
each  of  which  is  practically  self-supporting. 

DEPENDENCE    OF   WESTERN    SOUTH    AMERICA   UPON    FOREIGN    CAPITAL    AND    LARGE    ORGANIZATIONS 

OF   CAPITAL. 

The  nineteenth  century  witnessed  an  enormous  expansion  of  commerce  throughout  the  greater 
part  of  the  world,  largely  because  industries  developed  in  new  countries  bj'  means  of  the  capital 
that  Europe  had  slowly  accumulated  through  sevei-al  preceding  centuries.  The  foreign  trade 
which  South  America  now  has  is  almost  entirely  the  result  of  European  investments.  Foreign 
capital  has  worked  the  coffee  plantations  of  Brazil,  and  built  her  railroads  and  those  of  Argentina. 
The  docks  of  Argentina  are  owned  by  Englishmen  and  Scotchmen,  the  nitrate  works  of  Chile  are 
in  the  hands  of  English  and  German  ownei's,  and  the  sugar  plantations  of  Peru  are  the  property  of 
Americans  and  other  foreigners. 

The  capitalistic  development  of  western  South  America,  particularly  the  northern  part,  has, 
however,  not  3'et  progressed  very  far.  It  has  great  stores  of  natural  wealth,  but  the  obstacles  in 
the  way  of  their  utilization  have  not  been  overcome.  Large  organizations  of  capital  are  especially 
necessary  in  the  Andean  region  and  on  the  west  coast.  In  Argentina  the  European  owner  can 
culti,vate  his  grain  and  pasture  his  flocks  in  a  level  country  watered  by  rainfall,  but  in  Peru  irri- 
gation is  necessary  to  agriculture.  The  Ijuilding  of  a  railroad  across  the  level  pampas,  to  cany 
away  the  wool  and  grain  of  Argentina,  is  a  ver\'  much  easier  task  than  building  a  line  up  the 
defiles  of  the  Andes  to  tap  the  mineral  wealth  of  the  plateau.  Operation  on  the  east  side  can  be 
conducted  with  moderate  capital,  but  on  the  west  side  the  large  capitalist,  the  mining  expei-t,  and 
the  complicated  machine  are  necessary'.     The  return  to  capital,  however,  promises  to  be  liberal. 

Foreign  capital  has  made  less  headway  than  would  otherwise  have  been  made  in  western 
South  America,  because  of  the  frequency  of  political  disturbances  and  civil  wars.  The  deleterious 
effects  of  frequent  revolutions  and  unstable  political  conditions  are  known  to  be  great,  and  are 
felt  even  more  by  the  merchant  than  by  the  capitalist  who  is  engaged  in  mining,  agriculture,  or 
transportation.  The  manager  for  a  strong  corporation,  which  has  for  years  operated  a  large 
sugar  plantation  in  the  Peruvian  irrigated  belt,  reports  that  the  per  cent  of  loss  that  has  actually 
occurred  from  civil  wars  has  been,  on  the  whole,  surprisingly  small.  The  countrj',  however, 
suffers  greatly  because  capitalists  are  deterred  from  making  investments. 

The  western  part  of  South  America  has  been  lying  idle,  while  more  accessible  resources  else- 
where have  been  levied  upon.  But  a  new  era  seems  to  be  at  hand.  The  constant  tendency 
everywhere  is  to  organize  capital  on  a  large  scale,  and  it  seems  probable  that  the  development  of 
western  South  American  will  be  undertaken  by  organizations  of  capital,  similar  to  those  that  are 
giving  the  L^nited  States  its  industrial  preeminence.  In  fact,  a  substantial  beginning  has  already 
been  made,  and  that  beginning  is  responsible  for  the  present  importance  of  western  South 
America  to  the  world's  trade.  In  1899  Chile  exported  more  tons  of  nitrate  of  soda  than  the  port 
of  New  York  exported  tons  of  wheat.  This  nitrate  was  produced  bj'  large  foreign  corporations 
owning  their  own  nitrate  beds  and  reducing  plants,  the  railroads  to  cany  the  product  to  the  sea- 
coast,  and  the  piers  and  warehouses  from  which  to  ship  it.  In  1899  Peru  exported  110,000  tons  of 
sugar,  which  had  been  produced  by  firms  that  could  irrigate  their  plantations,  install  expensive 
machinery,  build  lines  of  railway  to  the  port  or  to  some  main  line,  and,  in  some  cases,  the  prod- 
uct was  exported  in  the  ships  of  the  producers.  By  the  increase  of  enterprises  of  this  character 
the  west  coast  can  double  and  treble  the  amount  of  her  contributions  to  international  trade. 

The  first  step  to  be  made  in  the  direction  of  these  changes  will  be  in  bettering  the  means  of 
transportation  by  the  building  of  railways,  or  starting  industrial  undertakings  which  include,  as 


PANAIMA  CAN.iL  TRAFFIC   AND   TOLLS.  289 

a  part  of  the  enterprise,  an  improvement  in  the  existing-  method  of  transportation.  This  will 
come  about  easier  after  the  opening  of  an  isthmian  canal,  which  will  tend  to  quicken  the  indus- 
trial and  commercial  life  of  the  west  coast  of  South  America.  Cheaper  freights  will  enable  the 
commodities  now  exported  to  be  marketed  more  cheaply  and  other  articles  not  now  utilized  will 
find  their  way  into  commerce.  With  the  greater  possibilities  of  securing  freight  will  come  new 
inducements  to  build  railways  and  make  other  improvements  in  transportation.  Railway  mate- 
rials and  the  machinery  necessary  for  the  equipment  of  industrial  plants  will  be  cheaper,  because 
of  lower  freight  rates  from  the  iron-i^roducing  countries  north  of  the  Isthmus. 

The  supply  of  capital  for  South  America  will  in  the  future  come  from  the  United  States  as 
well  as  from  Europe.  We  have  become  large  exporters  of  the  iron  and  steel  and  machinery 
needed  by  new  countries.  Our  increasing  wealth  and  population  will  furnish  money  and  men  for 
industrial  enterprises  in  foreign  lands.  American  ownership  and  direction  of  railroads,  mines, 
and  other  enterprises  in  Mexico  have  been  chieiiy  responsible  for  the  industrial  revolution  in 
that  country  during  the^past  twenty  3'ears,  and  for  the  accompanying  expansion  of  her  commerce, 
the  chief  part  of  which  has  been  with  the  United  States.  This  work  is  still  going  steadily  forward 
in  Mexico,  but  we  shall  likewise  welcome  opportunities  lying  beyond  the  Isthmus  of  Panama. 

DISADVANTAGES    OF   THE    UNITED    STATES    IN    TRADING    WITH   WESTERN    SOUTH   AMERICA — GENERAL 
EFFECT   OF    THE    ISTHMIAN    CANAL. 

With  very  few  exceptions  the  industries  of  western  South  America  may  be  classed  as  mining 
and  agricultural.  This  is  the  case  even  in  the  .seacoast  regions  engaging  in  foreign  trade.  There 
are,  of  course,  local  manufactures  of  various  articles  in  the  towns  and  villages,  such  work  as  is 
done  locally  in  any  comnumity,  but  the  nature  of  the  resources  of  western  South  America  is 
such  that  the  region  is  likely  to  continue  permanently  in  the  extractive  stage  of  industry,  or  at 
least  until  a  period  too  remote  for  consid(n-ation  here."  Pacific  South  America  is  now  but  half  of 
an  industrial  unit;  the  other  half,  the  manufacturing  complement,  is  in  Europe  and  the  United 
States.  Each  one  of  these  industrial  half  units  needs  better  facilities  for  marketing  its  produce 
in  the  other.  One  important  service  of  an  isthmian  canal  will  be  to  bring  these  separated  com- 
mercial and  industrial  complements  into  closer  relation. 

The  west  coast  of  South  America  bears  a  relation  to  the  manufacturing  centers  of  Europe 
and  the  United  States  similar  to  that  which  Montana,  Colorado,  and  Texas,  with  their  raw  prod- 
ucts, bear  to  the  manufacturing  States  of  the  East.  The  countries  of  the  North  Atlantic  need 
and  are  buying  the  export  products  of  the  west  coast  of  South  America— the  nitrate  and  the  ores 
of  co^jper,  silver,  and  gold,  the  grain,  sugar,  cotton,  cocoa,  cofl'ee,  wool,  hides,  rubber,  and 
woods.  In  return  for  this  export  these  South  American  Republics  are  importing  from  many 
countries,  but  chiefly  from  the  United  Kingdom,  all  kinds  of  manufactures,  from  steel  rails  to 
jewelry  and  fine  clothes.  Both  parties  wiirbe  Ijenefited  by  increasing  this  trade.  The  produc- 
tion of  raw  material  will  be  stinuilated  no  less  than  the  production  of  manufactures.  For  any 
gain  that  comes  to  South  America  the  rest  of  the  world  must  receive  an  accompanying  or  coui- 
l)lementary  advantage. 

The  United  States  will  derive  especial  advantage  from  the  shortening  of  the  roundabout  path 
of  this  large  and  increasing  conmierce.  Because  of  the  present  route  around  the  continent  the 
trade  of  the,  west  coast  is  mainly  with  Europe,  but  on  the  opening  of  the  canal  there  will  be  a 
change  of  front  toward"  the  United  States.  Both  European  and  American  traders  will  have 
greatly  improved  opportunities,  but  the  larger  relative  improvement  will  come  to  the  east  coast 
of  North  America.  Our  ports  will  then  have  from  2,000  to  3,000  miles  advantage  over  Europe 
in  the  journey  to  the  west  coast,  whereas  at  present  the  distance  from  New  York  and  the  ports 
of  the  J^nglish  Channel  to  that  section  of  the  world  are  nearly  equal,  the  southern  cities  of  Europe 
having  a  slight  advantage  over  the  ports  of  the  United  States.  Nearly  all  of  South  America  lies 
east  of  North  America.  The  meridian  of  Washington  is  that  of  Callao,  on  the  coast  of  Peru. 
Antofagasta  and  Iquique,  the  chief  nitrate  ports  of  Chile,  have  the  longitude  of  Boston.  Valpa- 
raiso is  Tl'"  4:0'  west  longitude  and  New  York  74°  03'.  The  eastern  point  of  Brazil  lies  2,600 
miles  east  of  New  York,  and  is  equidistant  from  New  York  Bay  and  the  English  Channel.  These 
facts  are  well  shown  bj-  Plate  75. 

The  sailing  vessels  bound  from  New  York  for  the  west  coast  of  South  America  must  go 
eastward  nearly  to  the  Canaries,  so  as  to  be  able  to  take  advantage  of  the  trade  winds  and  get 
past  Cape  St.  Roque,  on  the  coast  of  Brazil.  The  European  sailing  ship  goes  directly  past  the 
Canaries,  and  has  an  advantage  of  ten  days  over  the  American  in  a  voyage  to  any  part  of  South 
America  south  or  west  of  the  eastern  point  of  Brazil.  For  many  decades  our  direct  commerce 
with  South  America  has  been  chiefly  by  sail,  and  we  have  competed  with  Europe  under  most 
unfavorable  conditions.  The  small  part  of  our  trade  that  has  not  gone  by  sail  has  gone  by 
steamers  to  Panama  for  transshipment  to  the  two  lines  of  steamers  going. down  the  west  coast. 


290  PANAMA  CAN.VL  TRAFFIC   AND   TOLLS. 

These  lines  have  combined  to  keep  the  rates  at  such  a  iigure  that  for  most  of  the  time  during  the 
last  thirty-five  years  it  has  been  cheaper  to  ship  American  goods  to  South  America  via  England 
or  Germany.  It  has  often  cost  the  American  shipper  from  30  to  50  per  cent  more  to  send  freight 
3,500  miles  direct  to  western  South  America  by  Panama  than  to  send  it  l-i,000  miles  indirectly 
b}'  wav  of  Europe.  Shipping  around  the  Horn  by  sail  is  such  a  slow  and  irregular  means  of 
reaching  the  markets  as  to  prevent  the  development  of  a  .satisfactory  commerce  in  these  modern 
times,  when  expedition  is  the  order  of  business.  Our  share  in  the'  trade  of  the  west  coast  of 
South  America  has  not  been  gratifying  to  national  pride;  indeed,  we  have  done  little  more  than 
to  sell  in  those  countries  the  commodities  that  they  could  not  secure  elsewhere.  Europe  has 
taken  nearlv  all  of  their  exports  and  supplied  them  with  most  of  their  imports. 

Since  1890  two  American  companies  have  been  running  chartered  British  vessels  around  to 
Guayaquil,  and  during  this  period  the  value  of  our  exports  to  the  west  coast  has  increa.sed  16  per 
cent:  this,  however,  is  less  than  one-third  the  rate  of  the  increase  of  our  total  exports.  Fortu- 
nately the  steamer  is  rapidly  taking  the  place  of  the  sailing  vessel.  In  1880  steam  vessels  carried, 
largely  via  Panama,  36  per  cent  of  our  exports  to  the  countries  of  western  South  America.  In 
11H)0  81  per  cent  of  our  exports  to  those  countries  went  by  steam,  a  gain  of  225  per  cent  in  the 
proportion  carried  by  steam. 

The  starting  of  the  lines  of  steamers  from  New  York  has  not,  however,  given  our  manufac- 
turers an  even  chance  with  those  of  Europe.  American  merchants  and  consuls  on  the  west  coast 
complain  that  the  steamers  from  New  York  charge  higher  rates  than  those  from  Europe,  and 
nearly  as  high  as  the  Panama  lines.  Nevertheless,  these  steamers  alwaj's  leave  New  York  fully 
loaded  with  export  freight,  and  the  profitableness  of  the  business  is  attested  by  the  addition  from 
time  to  time  of  more  vessels  to  the  fleets.  This  suggests  what  may  be  expected  to  occur  when 
the  isthmian  canal  and  more  lines  of  steamers  give  us  shorter  and  better  means  of  communication 
with  Pacific  counti-ies. 

We  have  a  thriving  trade  with  the  American  countries  near  to  us.  Fifty-nine  per  cent  of 
Canada's  imports  come  from  the  L^nited  States.  The  ocean  route  to  Mexico  is  longer  than  to 
Canada,  and  the  railroad  connections  over  the  land  frontier  are  much  less  satisfactory,  yet  we 
furnish  49  per  cent  of  the  Mexican  imports.  The  northern  countries  of  South  America  are  about 
2,000  miles  from  New  York,  but  we  have  fairly  good  steamship  connection  and  a  growing  trade, 
Colombia  and  Venezuela  drawing  about  30  per  cent  of  their  imports  from  this  country.  In  con- 
trast with  this,  however,  the  United  States  furnishes  less  than  10  percent  of  the  imports  into  the 
countries  of  the  west  coast  of  South  America;  and  our  trade  there  has  increased  slowly  at  a  time 
when  the  growth  of  our  exports  as  a  whole  has  been  rapid.  Under  the  present  adverse  conditions, 
our  share  in  the  trade  of  the  west  coast  of  South  America  is  only  one-third  as  great  as  it  is  in  the 
South  American  countries  bordering  on  the  Caribbean  Sea,  one-fifth  as  great  as  in  Mexico,  and 
only  one-sixth  of  the  percentage  which  we  control  of  the  trade  of  Canada.  An  isthmian  canal, 
and  the  lines  of  communication  that  it  will  open  up,  may  be  expected  to  give  this  country  a 
larger  share  in  the  trade  of  the  Pacific. 

This  conclusion  is  strengthed  by  some  incidents  in  the  history  of  the  foreign  trade  of  Chile. 
In  j-ears  past,  the  British  share  of  that  trade  was  greater  than  it  is  at  present.  The  British  com- 
missioners, sent  in  1898  to  investigate  the  cause  of  this  decline,  reported  as  the  first  cause  that 
British  merchants  did  not  secure  as  low  freight  rates  for  their  commodities  as  were  obtainel  by 
their  continental  rivals,  the  diflerence  in  favor  of  Antwerp  and  German  ports  being  sometimes 
25  per  cent.  It  was  found  that  English  merchants  sometimes  .sent  British  goods  to  those  ports 
for  reshipment  to  Chile.  The  lower  rates  from  Germany  Mere  due  to  the  nitrate  trade.  Ger- 
many being  the  largest  importer  of  Chilean  nitrate  of  soda,  the  ships  returning  from  that  country 
to  Chile  could  ofler  the  best  rates  on  outgoing  freight,  and  this  was  one  of  the  causes  that  had 
enabled  the  (ierman  merchant  to  build  up  a  large  South  American  trade. 

A  similar  advantage  will  come  to  the  traders  of  this  country  when  the  canal  has  been  opened. 
B}-  that  time  the  United  States  will  have  a  larger  consumption  of  nitrate,  our  vessels  will  go 
directly  down  the  South  American  coast,  and  the  favorable  shipping  facilities  that  are  now  giving 
CTcrmany  an  advantage  over  the  United  Kingdom  will  be  possessed  in  a  more  marked  degree  by 
American  merchants.  Moreover,  it  is  probable  that  the  vessels  en  route  from  Europe  to  South 
America  will  aid  our  exporters  by  calling  at  our  ports  for  coal  and  other  cargo. 

The  advantage  of  cheaper  transportation  is  already  shown  in  the  export  cotton  trade  of  the 
United  States  to  Chile.  At  certain  tiiues  nitrate  ships  returning  to  South  America  ofler  verj- 
favorable  rates  from  New  York,  and  exporters  then  dispose  of  cotton  cloth  in  large  lots  at 
Chilean  ports,  thereb}"  securing  a  trade  which  the  regular  conditions  of  freight  would  not  permit. 

The  future  trade  between  our  east  coast  and  the  west  coast  of  South  America  will  have  the 
advantage  of  a  heavy  traffic  both  waj's,  a  phenomenon  rarely  met  with  in  international  commer- 
cial movements.  Our  east  coast  trade  with  Europe  consists  mainly  in  the  exchange  of  large 
quantities  of  agricultural  and  other  heavy  produce  for  a  small  quantity  of  manufactured  products, 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  291 

and  this  necessitates  a  large  ballast  movement  westward  across  the  North  Atlantic.  Our  exports 
from  New  York  to  Australia  are  but  partly  balanced  by  the  small  return  trade.  Our  exports  to 
the  Orient  of  iron,  cotton,  and  foodstuffs  are  exchanged  for  light  curios,  tea,  and  mattings.  Our 
trade  to  South  America  is  certain  to  give  rise  to  an  increasing  exportation  of  articles  similar  to 
those  we  are  sending  to  China  and  Australia,  with  the  probable  addition  of  coal,  and  these  com- 
modities will  be  exchanged  for  Peruvian  sugar,  Chilean  nitrate,  ores,  and  heavy  produce,  so  that 
vessels  will  readilj'  secure  cargoes  both  ways.  This  will  be  an  advantage  both  to  the  steamship 
companies  and  the  shippers. 

GEOGRAPHY,   RESOURCES,   AND    INDUSTRIES    OF    CHILE." 

Having  discussed  the  general  industrial  and  commercial  conditions  of  western  South  America 
as  a  whole,  it  will  be  profitable  to  examine  the  temperate  and  tropical  regions  separately  and  with 
some  detail.  The  temperate  division  of  the  continent,  for  the  purposes  of  this  discussion,  may 
be  considered  practically  coextensive  with  Chile;  for  although  the  northern  boundary  of  Chile 
extends  beyond  the  Tropic  of  Capricorn,  the  aridity  of  that  part  of  the  country  makes  mining  the 
only  industry.  Mining  industries  being  independent  of  climate,  the  activities  of  Chile  that  are 
determined  by  climate  are  located  within  the  Temperate  Zone.  Chile  is  long  and  narrow,  but  her 
area  is  large — larger,  in  fact,  than  that  of  France,  Germany,  or  the  United  Kingdom,  or  the  com- 
bined area  of  the  New  England  and  Middle  Atlantic  States  with  Maryland  and  the  Virginias 
added.  Her  length  of  2,600  miles  would  reach  from  New  York  to  Utah.  The  country  extends 
from  a  tropic  district  to  Tierra  del  Fuego,  where  the  latitude  and  climate  are  like  those  of  Scot- 
land. Nitrate  of  soda  is  the  chief  product  of  the  arid  northern  part  of  Chile,  which  is  the  source 
of  supply  for  the  entire  world.  The  agricultural  districts  and  the  center  of  population  are  farther 
south,  the  products  being  similar  to  those  of  our  Pacific  coast  States,  with  which  Chile  possesses 
many  points  of  similarity. 

The  temperate  shores  of  the  Pacific  show  a  succession  of  similar  geographic  and  climatic  fea- 
tures in  both  North  and  South  America.  These  resemblances  would  appear  plainly  if  Chile  could 
be  inverted  and  placed  beside  the  coast  of  North  America.  The  lower  end  of  the  inverted  Chile 
would  be  opposite  the  City  of  Mexico,  and  Tierra  del  Fuego  would  be  about  the  latitude  of  Sitka, 
Alaska.  The  800  miles  of  Chilean  desert  with  its  nitrate  beds  would  lie  against  the  arid  coast  of 
Mexico  where  its  silver  is  mined.  Patagonia  would  be  opposite  British  Columbia  and  Alaska, 
both  regions  being  damp,  fringed  with  rugged  islands,  and  cut  into  sharp  fiords  walled  in  by 
forest-clad  mountains,  having  snow  fields  on  their  sunnnits  and  glaciers  on  their  sides.  The  trop- 
ical and  cold  sections  are  unproductive  agriculturally,  but  in  the  temperate  belt  of  each  region 
civilization  and  diversified  industry  are  possible.  The  climate  is  that  of  western  Europe  and  the 
United  States. 

It  is  by  comparing  the  productive  region  of  the  north  temperate  Pacific  with  the  south  tem- 
perate Pacific  that  the  greatest  resemblances  and  likewise  the  difference  of  the  two  coasts  appear. 
Their  difference  is  due  to  the  absence  of  a  South  American  duplicate  for  the  State  of  Washington. 
California  and  Oregon  are  reproduced,  but  the  Antarctic  current,  sweeping  up  the  coast  of  South 
America,  shortens  the  temperate  section  of  Chile  so  much  that  the  region  corresponding  to  the 
State  of  Washington  is  replaced  by  a  longer  continuation  of  the  rugged  and  forest-clad  coast 
similar  to  that  of  Alaska  and  British  Columbia. 

Near  the  Mexican  boundary  of  the  United  States  the  resemblances  to  the  corresponding  agri- 
cultural parts  of  Chile  are  obvious.  In  Chile  the  arid  country,  by  means  of  irrigation,  produces 
grapes  and  raisins,  citrus  and  other  fruits,  and  alfalfa,  the  alfalfa  being  used  as  a  supplementary 
fodder  for  the  cattle  pasturing  on  the  higher  hills.  The  arid  belt  extends  several  hundred  miles, 
and  is  succeeded  on  the  south  by  wheat  fields  and  general  agriculture.  The  Chilean  forests  cor- 
responding to  those  of  central  and  northern  California,  Oregon,  Washington,  and  British  Colum- 
bia exist  in  the  lower  half  of  the  Chilean  agricultural  region  and  along  the  extensive  coast  of 
Patagonia. 

The  best  section  of  the  western  slope  of  both  Chile  and  the  United  States  is  found  in  a  large 
interior  valley.  The  valley  of  California,  bounded  on  the  east  by  the  Sierra  Nevadas,  on  the  west 
by  the  Coast  Range,  and  drained  by  the  Sacramento  and  the  San  Joaquin  rivers,  is  of  high  fertility. 
Chile  also  has  a  valley  similar  to  this,  but  larger  and  superior  to  it  in  several  particulars.  It  is 
inclosed  by  the  Andes  on  the  east  and  by  a  coast  range  near  the  shore  of  the  Pacific;  but  this 
coast  range  is  not  so  continuous  as  that  of  California,  being  broken  at  frequent  intervals  where 
rivers  make  their  way  to  the  ocean.  Instead  of  being  drained  by  two  rivers  flowing  lengthwise, 
and  having  a  ccJmmon  outlet  to  the  sea,  the  Chilean  Valley  has  several  small  rivers  flowing  across 
it  and  discharging  into  the  ocean.  The  basins  of  these  rivers  are  not  separated  by  high  divides, 
but  are  practically  continuous,  so  that  the  whole  district  is  properly  spoken  of  as  one  great  valley. 

a  Consult  Plates  76  and  77. 


292  ■      PANAJVIA  CANAL,  TKAFFIC   .VND   TOLLS. 

The  Andes  are  higher  than  the  Sierra  Nevadas,  and  westerly  winds  bring  a  larger  amount  ot 
moisture  than  California  has.  The  streams  have  a  larger  and  more  constant  ilow  of  water  fiv/m 
the  mountain  snows  and  furnish  an  abundant  supply  for  irrigation,  and  in  some  places  provide 
good  power. 

As  in  most  arid  countries  where  irrigation  can  be  practiced,  the  soil  is  fertile.  The  crops 
produced  are  identical  with  those  of  California.  All  of  the  cereals,  vegetables,  and  fruits  thrive 
and  provide  a  food  supply  sufficient  both  for  the  present  and  prospective  home  demands  and  for 
a  large  export  trade.  This  valley  is  about  TOO  miles  in  length — a  distance  equal  to  that  from  New 
York  to  Charleston — and  is  divided  into  thirteen  prosperous  provinces,  which  had  a  population 
in  1S95  of  2,400,000  people — as  many  as  there  were  in  California,  Oregon,  and  Washington  in  the 
census  ,year  1900.  California  has  less  than  ten  persons  to  the  square  mile,  while  the  Chilean 
Valley  has  from  three  to  five  times  as  many,  and  is  about  equal  in  density  of  population  to  Maine, 
New  Hampshire,  and  Vermont,  or  to  our  J^outhern  States,  exclusive  of  Florida. 

The  great  trunk  line  of  the  Government  railway  goes  through  most  of  this  region  from 
north  to  south.  It  is  being  extended  in  both  directions,  and  will  eventually  connect  Coquimbo, 
in  latitude  29-,  with  Porto  Moutt,  in  latitude  41°.  The  line  to  the  last  point  is  already  surveyed. 
This  road,  most  of  which  is  now  completed,  will  be  about  1,300  miles  long,  and  will  connect  with 
man}^  branches  and  private  lines  from  the  various  mining  and  agricultural  centers.  The  several 
rivers  breaking  through  the  coastal  mountain  range  make  it  easy  for  the  railroad  to  connect  with 
seaports,  and  there  are  now  railway  lines  to  six  harbors,  giving  the  producing  centers  of  the 
country  opportunitj"  to  take  advantage  of  the  water  transijortation  supplied  by  the  lines  of  coast- 
ing steamers  that  are  doing  a  large  business  in  both  directions.  In  the  valley  of  California  the 
coast  ranges  make  necessary  a  much  longer  railway  haul  to  reach  the  ports. 

The  northern  part  of  the  agricultural  region,  the  district  around  Valparaiso  and  Santiago,  is 
older  and  more  fully  developed.  Of  this  section  the  Aconcagua  Valley,  which  may  be  taken  as 
a  type,  is  a  plain  highly  irrigated,  famed  for  its  agriculture.  The  grape  crop  of  this  valley 
alone,  it  is  estimated,  would  make  1,000,000  gallons  of  claret  wine  were  it  so  used  instead  of 
being  manufactured  into  the  local  drink  called  "chica."  Potatoes  are  exported  to  the  nitrate 
deserts  of  the  north  and  to  Panama,  alfalfa  hay  to  Brazil,  and  honey  and  wax  are  sent  to  Europe. 
Local  canneries  preserve  the  fruit  crop,  which  is  mainly  marketed  in  other  sections  of  the 
country.  Thei'e  is  pasturage  on  the  neighboring  hills  above  the  level  of  irrigation,  where  a 
peculiar  kind  of  wirj^  grass,  well  adapted  to  its  dry  surroundings,  grows  for  months  after  a 
soaking  rain. 

The  sides  of  the  Andes  throughout  this  whole  belt  are  forest  clad.  In  latitude  37°  south,  the 
forest  growth  becomes  general,  and  the  country  is  similar  to  many  parts  of  the  eastern  United 
States.  This  latitude  is  now  the  Chilean  industrial  frontier,  the  opening  up  of  the  region  having 
been  recently  begun  as  the  result  of  the  advent  of  better  means  of  transportation.  New  railroads 
are  being  built,  forests  are  being  cleai'ed,  and  stock  raising  and  cereal  agriculture  are  increasing. 
The  forest  regions  have  tanning  industries,  sole  leather  being  exported  to  Europe. 

The  agricultural  and  mining  regions  of  Chile  are  north  of  40  degrees.  South  of  that  there 
is  as  yet  practicall}'  nothing  of  commercial  importance  except  the  sheep  pastures  of  Terra  del 
Fuego.  The  1,000  miles  of  intervening  coast  is  as  little  known  as  is  the  coast  between  the  port 
of  Vancouver  and  the  mainland  of  Alaska.  Nearly  all  of  the  present  and  prospective  Chilean 
commerce  and  population  are  from  1,000  to  2,000  miles  north  of  the  Straits  of  Magellan,  through 
which  their  commerce  nmst  find  its  way  to  the  Atlantic,  until  the  canal  provides  a  shorter  outlet. 

Chile  exported  something  over  3,000,000  bushels  of  grain  to  Europe  in  1898-99,  but  the 
larger  part  of  the  exports  of  the  country  consists  of  the  minerals  mined  in  the  northern  and  arid 
part  of  the  State.  The  agricultural  part  of  the  country  sends  large  quantities  of  food  products 
to  the  mining  regions  of  the  northern  provinces.  The  greater  part  of  Chile's  export  wealth 
originates  in  regions  that  are  almost  a  desert.  Their  dryness  causes  their  richness;  indeed,  a 
moist  climate,  instead  of  being  a  blessing,  would  cause  the  disappearance  of  the  g  reater  part  of 
the  wealth  of  this  section,  which  consists  of  such  soluble  minerals  as  nitrate  of  soda,  iodine, 
borax,  and  common  salt. 

Nitrate  of  soda,  the  chief  export  of  Chile,  lies  in  a  nearly  continuous  deposit  parallel  to  the 
seacoast,  extending  150  miles  from  north  to  south,  with  scattering  deposits  reaching  250  miles 
farther,  the  total  covering  220,356  acres,  and  estimated  to  contain  about  228,000,000  long  tons, 
a  quantity  sufficient  to  last  the  world  for  many  decades  to  come.  The  nitrate  is  found  under 
the  surface  layer  of  sand,  and  when  shoveled  out  has  the  consistency  of  cheese.  It  is  refined  in 
numerous  and  extensive  plants  requiring  large  capital.  The  crude  product  is  dissolved,  chem- 
ically treated,  and  crystallized  to  get  rid  of  the  impurities.  Among  these  impunities  are  iodine 
and  common  salt,  which  arc  separated  for  export. 

The  cit}'  of  Iquiquc,  the  most  important  nitrate  port,  may  be  taken  as  a  type  of  the  towns 
that  depend  upon  the  nitrate  industrj'  for  their  existence.     Hei'e  30,000  people,  having  the  con- 


PAN^yHA  CANAL   TRAFFIC   AND   TOLLS.  293 

reniences  of  a  modern  citj^,  live  in  the  desert,  where  every  supply  for  man  and  beast  must  be 
imported  from  other  ports  of  Chile  or  from  foreign  countries.  Water  for  the  city  is  brought  by 
pipe-line  200  miles  from  the  Andes.  A  railroad  zigzags  up  to  the  plateau  and  winds  around 
among  numerous  nitrate  works  situated  in  the  desert.  The  railroad  company  is  English,  and 
most  though  not  all  of  the  nitrate  plants  are  owned  by  foreigners.  Borax  is  obtained  in  the  dry 
districts,  and  in  some  places  common  salt  is  taken  from  the  surface  of  the  earth  by  sawing  it  out 
in  cakes  that  are  handled  like  ice.  Besides  these  desert  mineral  products  the  same  I'egion  con- 
tains a  large  amount  of  copper,  silver,  and  lead.  Antofagasta  is  the  port  of  this  section  and  is 
also  the  outlet  for  the  mines  of  Bolivia,  which  ship  their  antimony,  bismuth,  tin,  mercury,  and 
sulphur  over  the  Antofagasta  railroad.  Most  of  these  products  are  in  the  form  of  ores,  some  of 
which  are  refined  at  Antofagasta  while  the  rest  is  exported,  mostly  to  Europe,  for  treatment. 

The  rise  in  the  price  of  copper  has  greatly  increased  the  copper-mining  industry  of  Chile, 
and  the  deposits  of  copper  promise  to  contribute  largely  to  the  world's  supply  of  this  metal. 
Low-grade  copper  ores  have- been  found  in  abundance  in  the  district  near  Santiago,  near  to  the 
ocean.  Copper  now  ranks  second  among  Chile's  exports,  amounting  in  1900  to  25,178  metric 
tons  of  the  metal  and  20,210  tons  of  the  ore.  In  coal  Chile  has  an  asset  that  will  assist  with  the 
development  of  other  resources,  although  she  has  small  prospects  of  ever  becoming  a  coal 
exporter.  In  the  south,  about  latitude  37°,  the  ports  of  Coronel  and  Lota  are  the  points  of 
shipment  for  mines  located  near  by.  The  deposits  are  large,  but  the  qualitj"  is  inferior  to 
English  and  American  coal,  and  the  output  is  insufficient  for  home  demands,  although  it  is 
largely  used  by  steamers  going  up  and  down  the  coast  and  to  Europe. 

THE   CANAL   AND   THK   TRADE    OF   THE    UNITED   STATES   \VITH   CHILE. 

The  intei'est  of  the  American  people  in  the  commerce  of  Chile  is  greater  than  our  present 
share  of  that  trade  would  indicate.  The  foreign  commerce  of  Chile  now  amounts  to  about 
$100,000,000  and  is  increasing.  In  1899  the  exports  were  159,000,000  and  the  imports  $39,000,000- 
about  nine-tenths  of  the  imports  came  from  Europe,  while  nincteen-twentieths  of  the  exports 
went  to  that  continent.  Our  trade  is  slight  compared  with  that  of  the  United  Kingdom,  Germany, 
or  France.  An  examination  of  the  elements  of  the  trade  of  Chile  shows  why  the  canal  will 
increase  our  share.  Of  the  Chilean  exports,  nitrate  of  soda  comprises  nearly  60  per  cent, 
although  the  percentage  is  slightly  declining,  owing  to  the  increased  export  of  copper  and 
copper  ores.  Next  in  the  order  of  importance  come  silver  and  silver  ores,  then  wheat  and  barlej^, 
wool,  hides,  and  other  scattering  and  agricultural  and  mineral  products,  most  of  which  are 
needed  in  the  United  States.  Vt'e  need  the  nitrate  for  our  fertilizers  and  chemical  manufactures, 
we  have  the  coal  to  smelt  the  copper  and  silver  ores,  we  need  the  wool  for  our  carpet  manufac- 
tures, and  the  hides  to  furnish  raw  material  for  our  leather  manufactures.  Of  coui-se,  the  grain 
products  are  needed  in  Europe  and  not  in  the  United  States. 

Of  the  Chilean  imports  cotton  manufactures  comprise  b}'  far  the  largest  part.  Then  come 
machinery  of  all  kinds,  kerosene,  woolens,  coal,  bagging,  and  all  kinds  of  miscellaneous  manu- 
factures and  supplies.  The  cotton  manufactures  are  made  from  the  raw  material  grown  in  the 
southern  part  of  the  United  States  and  carried  to  Europe  for  manufacture,  whence  the  goods 
are  shipped  through  the  Straits  of  Magellan.  Much  of  that  cotton  cloth  will  in  the  future  go 
direct  from  American  mills  via  New  York,  Charleston,  Mobile,  or  New  Orleans,  and  save  trans- 
shipments and  7.000  miles  or  more  of  transportation.  AVe  have  the  materials  and  manufacturing 
ability  to  furnish  the  Chileans  their  machinery.  We  are  now  furnishing  them  with  kerosene, 
and  when  the  canal  is  opened  we  will  probably  be  able  to  send  them  coal  and  many  miscellaneous 
manufactures. 

The  reduction  of  freight  rates  that  may  be  expected  to  follow  the  opening  of  the  canal  will 
not  only  extend  our  present  trade  with  western  South  America,  but  will  increase  the  number  of 
the  articles  that  enter  into  it.  With  a  few  exceptions  the  goods  Chile  secures  in  this  country 
are  those  which  we  produce  under  especiall}'  favorable  circumstances — lard,  lumber,  kerosene, 
breadstufl's,  patented  articles,  like  medicines,  firearms,  electrical  appliances,  farming  machinery, 
and  improved  hardware.  These  articles  can  1  e  sold  readily  in  Chile  after  the  canal  has  been 
opened.  We  have  just  begun  to  send  Chile  iron  and  steel.  The  bulk  of  the  pig,  bar,  and  hoop 
iron,  rails,  and  castings  now  come  from  Europe,  although  we  can  make  them  more  cheaply  than 
our  European  rivals  can.  The  railroads  of  Chile  have  iron  rails  that  must  soon  be  exchanged 
for  steel.  The  towns  and  cities  of  Chile  Mill  use  an  increasing  amount  of  structural  iron  for 
building  purposes.  The  growing  favor  of  electricity,  in  a  country  having  many  mountain  streams 
for  water  power,  is  opening  up  a  demand  for  electrical  machinery-  which  American  manufacturers 
are  already  able  to  supply.  We  are  sending  small  ciuantities  of  many  other  articles,  in  which 
transportation  is  a  large  factor,  such  as  earthenware,  glass  and  glassware,  cordage,  paper,  and 
coal.     Our  cotton  exports  to  Chile  consist  mainly  of  one  or  two  plain  staple  grades  made  without 

34998°— 12 20 


294  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

reference  to  the  Chilean  market  and  shipped  in  bulk,  as  chance  opportunities  occur.  With 
attention  to  the  demands  of  the  market  and  cheaper  transportation  that  business  can  be  greatly 
extended. 

It  is  probable  that  some  of  the  trade  of  the  •western  part  of  Argentina,  lying  on  the  east 
slope  of  the  Andes,  will  be  handled  through  Chilean  ports  and  will  use  the  canal.  The  foothill 
provinces  of  Argentina,  like  those  of  Chile,  produce  fruit,  wine,  and  grain,  and  are  a  prosperous 
region.  This  region  being  from  700  to  000  miles  from  the  Atlantic  ports  of  Argentina  and  within 
200  miles  of  the  ports  of  the  Pacific,  which,  when  the  canal  has  been  opened,  will  be  much  nearer 
North  America  than  Buenos  Ayers  will  be,  the  mails,  passenger  traffic,  express  business,  and  some 
classes  of  freight  may  be  taken  across  the  Andes  and  sent  north  from  Valparaiso  or  some  other 
Chilean  port.  A  boundary  controversy  has  delayed  the  completion  of  the  Trans-Andean  Railroad, 
but  contracts  have  been  let  for  finishing  the  work. 

TROPICAL   SECTION    OF   WESTERN    SOUTH    AMERICA — GENERAL  DESCEIPTION." 

The  tropical  section  of  western  South  America  is  nearly  double  the  area  of  the  temperate 
Pacific  region,  and  includes  practicallj^  all  of  Bolivia,  Peru,  Ecuador,  and  a  part  of  Colombia. 
In  this  discussion  of  the  trade  of  the  Pacific,  however,  the  portion  of  each  of  these  States  is 
omitted  that  lies  in  the  almost  unexplored  forest  plain  extending  eastward  from  the  Andes.  The 
region  here  considered  has  an  area  of  nearly  half  a  million  square  miles.  It  is  more  than  twice 
aslarge  as  France,  is  greater  than  our  Middle  Atlantic  States  and  Southern  States  east  of  the 
Mississippi  River,  and  is  equal  to  our  three  Pacific  Coast  States  with  the  addition  of  Idaho, 
Wyoming,  and  Colorado. 

The  region  consists  of  a  costal  plain  and  a  high  plateau.  The  plain  is  either  matted  with 
tropic  vegetation  and  drenched  with  rain  or  is  a  sandy  desert,  and  neither  of  these  conditions 
favors  the  establishment  of  communication  with  the  plateau  30  to  100  miles  inland,  which  must 
be  surmounted  by  ascending  a  steep  and  forbidding  mountain  wall.  The  mineral  wealth  of  the 
plateau-is  abundant,  but  is  at  present  available  only  to  a  small  extent. 

This  South  American  region  has  a  population  of  over  6,000,000,  but  is  made  up  chiefly  of 
Indians  and  half-breeds,  with  a  comparatively  small  proportion  of  the  dominant  Spanish  race. 
The  latter  race  lives  in  the  towns,  devoting  itself  to  political  and  mercantile  affairs,  the  propor- 
tion of  Spanish  blood  decreasing  as  the  distance  from  the  towns  increases.  All  the  labor  of  the 
countiy  is  done  b}'  the  half-breed  Indians  or  bj'  imported  Chinese  and  Japanese  labor.  Industri- 
ally, the  South  American  Indian  is  said  to  be  superior  to  the  North  American  Indian,  and  when 
properly  supervised  to  be  nearly  equal  to  the  negro  as  a  laborer.  The  social  and  economic  con- 
ditions do  not  tend  to  make  the  laborers  ambitious.  Some  of  the  natives  own  the  lands  fi'om 
which  they  glean  a  living,  but  throughout  Ecuador,  Peru,  and  Bolivia  a  system  of  industrial 
servitude  exists  that  places  the  majority  of  the  laboring  classes  in  a  condition  similar  to  that  of 
the  English  serf  in  the  Middle  Ages.  The  laborer  is  in  debt  to  his  employer,  who  manages  to 
keep  him  so.  Theoretically,  every  man  can  work  for  whom  he  wishes,  but  the  debtor  is  prac- 
tically prevented  from  changing  masters  by  legal  difficulties. 

The  Andean  region  of  South  America  now  has  but  little  international  trade,  because  the 
development  of  its  natural  resources  has  been  prevented  bj'  untoward  political  conditions,  by  the 
mountainous  character  of  the  country,  and  the  absence  of  an  isthmian  canal. 

THE    PERUVIAN    COAST — ITS   INDUSTRIES   AND    THE    EFFECTS   OF    THE    CANAL    UPON    THEM. 

Taking  Guayaquil  as  a  center,  it  will  be  found  that  the  coast  running  800  miles  to  the  north 
of  it  includes  a  costal  plain  sparsely  populated  by  a  few  Indians  and  negroes,  who  can  inhabit  its 
unwholesome  forests.  To  the  south  extends  some  1,200  miles  of  seacoast,  known  as  "  Zona  Seca," 
or  dry  zone,  which  has  considerable  industrj^  at  present,  has  had  more  in  the  past,  and  promises 
to  be  the  scene  of  greater  activity  in  the  future. 

The  Peruvian  coast  for  1,200  miles  is  too  dry  for  ordinary  agriculture.  Regular  crops  can 
be  raised  only  by  irrigation,  the  supply  of  water  being  the  rainfall  on  the  Andean  slopes  at  an 
elevation  of  7,000  feet  and  more.  During  the  winter  months  the  fift\'  streams  crossing  the  plain 
are  raging  torrents,  overflowing  their  banks,  but  during  the  heat  of  the  summer  they  dry  away 
to  mere  rivulets,  only  two  of  the  northern  ones  having  sufficient  depth  to  be  of  any  use  for 
navigation. 

If  the  Peruvian  coast  had  abundant  rains,  it  would  be  so  malarious  and  unwholesome  as  to 
be  unsuitable  for  white  men,  whereas  its  climate  is  said  to  be  healthful  and  cooler  than  that  of 
other  regions  in  the  same  latitude,  owing  to  the  Antarctic  current  flowing  up  the  west  coast  and 
to  the  sea  breezes. 

a  See  Plate  78. 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  295 

The  Peruvian  coast  is  desolate  except  where  irriyatioii  has  produced  green  fields  in  the  dry 
plains.  Its  present  population  and  the  amount  of  land  cultivated  are  doubtless  much  smaller 
than  they  were  before  massacres,  slavery,  and  white  men's  di.seases,  particularly  smallpox,  had 
greatly  reduced  the  native  population. 

The  soil  in  this  coast  plain  is  fertile  when  irrigated,  and  well  suited  to  the  production  of 
sugar,  cotton,  and  rice.  Experts  claim  that  sugar  can  be  produced  here  as  cheaplj'  as  in  any  other 
place  in  the  world.  The  sugar  industry,  indeed,  had  made  a  good  start  before  1885,  when  the 
desolating  war  with  Chile  destroyed  many  of  the  plantations.  The  business  has  recovered, 
110,000  tons  having  been  exported  during  1900. 

The  cotton  crop  of  this  section  is  one  in  which  the  United  States  is  particularly  interested. 
Some  of  the  valleys  of  the  north,  particularly  those  of  the  Piura  and  Chira  rivers,  grow  a  peculiar 
kind  of  rough  liber  cotton  of  a  reddish  color,  that  will  not  grow  in  any  other  part  of  the  world, 
and  is  valuable  because  it  mixes  well  with  wool.  The  irregular  supply  of  about  10,000  tons  a 
year  grows  largely  without  cultivation  along  the  rivers.  At  the  present  the  United  States 
imports  miich  of  this  cotton  by  way  of  Liverpool.  We  can  use  many  times  as  much  of  this 
product  as  we  now  receive,  and  its  cultivation  can  be  largely  extended  by  the  introduction  of 
proper  irrigation  works. 

Some  rice  is  exported  from  the  port  of  Trujillo,  and  farther  south,  at  Pisco,  there  is  some 
shipment  of  the  wine  and  grape  proaucts  which  grow  in  the  irrigated  orchards  near  the  Andes. 
Aside  from  these  crops,  however,  the  agricultural  products  of  this  plain  will  be  used  to  supply 
food  products  for  the  Peruvian  population. 

As  agriculture  advances  there  must  be  a  reorganization  and  extension  of  the  railroads  from 
the  coast  inland.  Several  lines  now  extend  a  short  distance  from  the  Pacific,  but  as  industry 
and  tralfic  increase,  these  scattered  pieces  of  roadway  must  be  combined  into  one  or  two  systems, 
centering  at  a  harbor  or  harbors  that  can  be  improved  by  the  construction  of  piers  suitable  for 
the  easy  handling  of  the  freight.  When  these  improvements  are  made,  they  will  require  mate- 
rials with  which  the  United  States  is  well  supplied. 

Petroleum  fields  are  located  near  the  Ecuadorean  boundary  at  the  west  point  of  South 
America,  the  deposits  l3nng  along  the  coast  for  a  distance  of  200  miles,  extending  inland  a  con- 
siderable distance,  and  reaching  outward  under  the  sea.  The  development  of  this  resource  has 
not  met  with  much  success  up  to  the  present  time,  although  the  oil  deposits  are  said  to  be  rich. 
An  English  company  is  now  operating  there  with  an  American  director,  and  is  securing  a  con- 
stantly increasing  output,  which  reached  about  2,000  tons  a  month  in  May,  1900.  Thus  far  only 
3  or  4  square  miles  situated  on  the  seacoast  have  been  prospected,  and  that  not  thoroughly,  in  a 
field  which  is  supposed  to  be  extensive  in  area.  The  oil  is  not  suitable  for  illumination,  but 
makes  a  valuable  fuel.  It  is  used  on  all  the  railroads  of  Peru,  and  may  give  much  assistance  to 
the  industrial  development  of  the  Pacific  coast  of  South  America. 

THE    ANDEAN    PLATEAU. 

The  Andean  Mountain  system,  with  its  plateaus,  may  be  compared  with  the  Rocky  Mountain 
region  of  the  United  States.  Beginning  in  northern  Colombia  and  reaching  to  the  boundaries  of 
Argentina  and  Chile,  it  has  greater  length  than  our  Rocky  Mountain  region,  an  equal  or  greater 
width,  and  probably  more  individual  mountain  ranges.  In  point  of  population  the  Andean 
region  exceeds  its  North  American  counterpart,  for  our  seven  Rocky  Mountain  States  and  Ter- 
ritories— not  including  the  Pacific  coast  States — contained  in  1900  only  1,500,000  people,  while 
the  Andean  region  contains  at  least  4,000,000.  The  industrial  capacities  of  the  people  of  the 
United  States,  it  need  hardly  be  mentioned,  are  far  greater  than  those  of  the  Andes. 

The  great  elevation  of  the  plateau,  situated  in  ti"opical  latitudes,  gives  it  a  variety  of  agri- 
cultural produce.  On  the  intermediate  heights  beans,  potatoes,  and  wheat  are  grown,  while  in 
the  hot  valleys,  which  here  and  there  intersect  the  plateau,  the  people  raise  sugar  cane,  oranges, 
and  bananas.  There  are  single  estates  on  which  the  owner  grows  all  of  the  crops  of  both  tropical 
and  temperate  climates. 

The  plateau  of  Ecuador  may  be  taken  as  a  typical  section  of  this  Andean  region.  The 
Ecuadorian  plateau  has  an  elevation  of  8,000  to  10,000  feet,  and  is  really  an  inclosed  valley  some 
400  miles  long  and  about  50  miles  wide,  hemmed  in  on  both  sides  by  the  high  chains  of  the 
Andes.  The  rainfall  is  scanty  on  the  whole  plateau,  and  agriculture  usually  depends  upon  irri- 
gation, for  which  the  snows  of  the  mountains  furnish  abundant  water.  The  soil  is  largely  of 
volcanic  origin  and  is  very  fertile.  The  climate  is  mild  and  springlike.  The  population  is  about 
900,000. 

This  Ecuadorian  population  of  nearly  a  million  depends  for  its  connection  with  the  outside 
world  upon  a  neglected  and  dangerous  mule  trail  to  Guayaquil.  During  the  rainy  season  this 
orecarious  route  sometimes  becomes  impassable,  and  the  interior  is  left  entirely  without  means 


296  PANMIA  CANAL  TRAFFIC  AJSTD  TOLLS. 

of  communicating  with  the  outside  -world.  A  railroad  350  miles  in  length  is  being  built  from 
Guayaquil  to  Quito,  and  the  American  company  constructing  it  confidently  expects  that  it  will  be 
completed  long  before  the  opening  of  the  isthmian  canal. 

With  the  coming  of  the  railroad  the  people  of  interior  Ecuador  will  use  much  larger  quanti- 
ties of  imported  manufactures  than  they  have  been  able  to  get  in  the  past,  and  they  will  want  vari- 
ous kinds  of  machinery.  They  will  secure  the  money  to  buy  these  things  by  working  for  the 
foreign  capitalists  engaged  in  developing  the  mines,  by  supplying  the  coast  regions  with  food  prod- 
ucts, and  b_v  exporting  hides  and  other  agricultural  commodities.  The  railroad  will  also  enable 
them  to  secure  the  wood  and  lumber  needed  on  the  whole  plateau  region,  which  is  in  many  places 
destitute  of  timber.  The  railroad  will  help  in  the  introduction  of  modern  industrial  methods. 
The  old  wooden  plow  will  gradually  disappear;  shovels  and  wheelbarrows  will  come  into  use;  the 
people  will  thrash  and  clean  their  grain  with  machines  instead  of  treading  it  out  with  animals  and 
winnowing  it  in  the  wind.  Their  huts,  made  of  reeds  or  poles  and  put  together  without  a  bolt 
or  a  nail,  will  gradually  give  way  to  houses,  and  in  time  the  towns  will  be  better  built. 

This  description  of  the  plateau  of  Ecuador  would  apply  to  many  districts  in  Peru  and  Bolivia, 
the  climate,  people,  and  industrial  conditions  being  very  similar  throughout  the  Andean  plateau; 
the  high  parts  of  one  country  resemble  those  of  another  just  as  the  plateaus  of  Colorado  resemble 
those  of  Montana. 

The  plateau  region  reaches  its  greatest  width  near  the  boundaries  of  Peru  and  Bolivia,  where 
such  a  State  as  Pennsylvania  might  easily  be  put  down  and  be  in  every  part  at  least  10,000  feet 
above  the  level  of  the  sea.  Lake  Titicaca  is  as  large  as  Connecticut,  and  drains  into  Lake  Poopo, 
which  is  as  large  as  Rhode  Island.  These  lakes  are  connected  by  the  Desoguadero  River,  180 
miles  long,  and  navigated  a  part  of  the  way  by  steamers.  These  lakes  are  the  center  of  a  great 
treeless  plain,  chiefly  devoted  to  stock  raising.  The  Bolivian  part  of  this  plain  supports  about 
7,000,000  sheep,  a  number  one-ninth  a.s  great  as  all  of  those  in  the  United  States,  and  there  are 
in  addition  manj^  cattle,  mules,  and  swine.  Barley  and  potatoes  are  grown — the  surplus  crops  of 
the  Indian  agriculturist  being  marketed  in  the  mining  towns. 

The  people  of  the  Andean  plateau  are  now  very  poor.  They  make  their  own  clothes,  raise 
their  own  food,  receive  low  wages,  have  a  low  standard  of  living,  and  buy  but  little  from  the 
outside  world.  But  their  needs  and  standards  can  and  will  change.  On  this  point  the  experience 
of  Mexico  is  interesting.  Twenty  years  ago  foreign  merchants  in  the  interior  of  Mexico  despaired 
of  the  people  ever  becoming  large  consumers.  Five-sixths  of  them  were  Indians,  who  received 
for  their  wages  5  cents  per  day  in  cash  and  5  cents  in  rations.  Communication  was  by  stagecoach. 
The  people  wore  sandals,  unbleached  cotton,  and  straw  hats,  and  bought  practically  nothing. 
Since  that  time  railroads  have  been  built  through  these  districts  and  the  laborer  is  receiving  from 
50  cents  to  $1.50  a  day  as  an  agricultural  or  mining  laborer,  and  every  Indian  wants  a  watch. 
AVith  their  higher  wages  they  have  become  good  buyers  of  manufactures  from  their  own  and 
foreign  countries.  The  Andean  plateau  offers  conditions  to-day  similar  to  those  of  interior 
Mexico  twenty  years  ago,  and  there  is  reason  to  believe  that  what  happened  in  Mexico  will 
happen  in  South  America.  . 

Attention  was  called  above  to  the  general  resemblance  of  the  Andean  plateau  to  our  own 
Rocky  IMountain  region.  The  tropic  Andes  are  admitted  to  be  richer  in  mineral  resources  than 
the  Rocky  ilountains,  but  the  present  industrial  development  is  vefy  diflerent.  Our  Rocky 
Mountain  States  and  Territories  are  served  by  a  good  network  of  railroads,  the  State  of  Colorado 
alone  having  nearly  5,000  miles,  while  the  whole  Andean  plateau  has  less  than  600  miles,  and  the 
lines  have  not  penetrated  to  the  richest  mineral  deposits. 

In  spite  of  their  poor  connection  with  the  outside  world,  the  Andes  have  produced  enormous 
wealth.  The  bullion  from  their  mines  furnished  the  civilized  world  with  the  greater  part  of 
its  money  during  the  centuries  of  Spanish  dominion.  Between  1630  and  1803  Peru  sent  out 
$1,250,000,000  worth  of  silver.  Bolivia  has  produced  about  $4,000,000,000  worth.  Of  this 
enormous  sum  the  famous  mines  of  Potosi,  which  to-dav  can  be  reached  only  b}'  a  bridle  path, 
yielded  $3,000,000,000. 

Mining  operations  have  changed  but  little  during  the  past  century.  The  mining  district  of 
Hualgayoc,  Peru,  for  instance,  has  400  silver  mines  in  an  area  of  40  square  leagues.  Some  of 
these  mines  are  now  j'ieldino-  ores  having  300  ounces  of  silver  per  ton.  The  work  is  done  liy  the 
Indians,  who  l)urrow  around  through  the  viens  as  best  they  can,  getting  out  the  ore  with  a'drill 
and  hammer  and  carrying  only  the  richest  of  it  to  the  surface  in  rawhide  sacks.  It  is  then  picked 
over,  crushed,  reduced  to  a  sulphate  by  crude  methods,  and  taken  on  mule  back  to  the  coast  and 
shipped  to  Europe  for  refinement.  At  Huallanca,  Peru,  200  miles  from  the  coast,  ores  worth 
$30  per  ton  are  thrown  upon  the  waste  heap  because  they  are  not  worth  transportation  to  the 
seaports.  Yet  to-daj',  in  our  own  Western  States,  companies  with  large  capital  and  expensive 
machinery  are  profitably  reducing  ores  yielding  from  M  to  $7  per  ton.  In  the  copper  mines  at 
Corcoro,  Bolivia,  to  the  south  of  Lake  Titicaca,  the  ores  are  blasted  out  and  then  hammered  to 


PANAilA  CAJST.iL  TRAFFIC  AND   TOLLS.  297 

pieces  by  women,  who  pick  out  the  best  portions.  Owing  to  the  scarcity  of  fuel,  little  of  the  ore 
can  be  treated  on  the  spot,  and  that  above  70  per  cent  pure  is  carried  awav  on  pack  animals.  In 
many  mines  of  the  United  States  ores  with  but  3  or  Jr  per  cent  copper  arc  smelted. 

The  Bolivian  mineral  districts,  in  some  places  200  miles  wide,  rich  in  tin,  copper,  silver,  and 
gold,  extend  north  and  south  for  a  distance  of  700  miles.  The  Antofagasta  Railroad  has  but 
just  touched  a  corner  of  this  field.  The  terminus  of  its  line  at  Oruro  is  195  miles  south  of  Lake 
Titicaca,  and  as  the  greater  part  of  the  Bolivian  minerals  are  in  the  eastern  ranges  of  the  Andes, 
the  railroads  have  not  reached  them.  The  city  of  La  Paz,  with  a  population  of  about  100,00o] 
is  dependent  upon  a  stage  road  45  miles  long,  and  Cochabamba,  with  25,000  people,  has  no  outlet 
except  a  bridle  path  of  greater  length. 

The  improvements  resulting  from  better  transportation  facilities  are  illustrated  in  the 
limited  district  that  the  Antofagasta  Railroad  has  reached,  where  changes  have  been  made  in  the 
methods  of  operating  the  mines,  and  large  quantities  of  ore  are  sent  to  the  coast.  One  Eno-lish 
company  connected  its  mines  with  the  railroad  by  building  a  branch  line  15  miles  long,  including 
2  miles  of  tunnel.     The  venture  is  said  to  have  paid  well. 

The  railroad  connecting  the  Peruvian  seaport  of  Mollendo  with  the  lake  port  of  Puno  carries 
out  large  quantities  of  mineral  products,  but,  like  the  Antofagasta  Railroad,  it  has  not  tapped 
the  mamiields.  The  railroad  has  connections  with  the  lake  steamers  that  carry  the  products  of 
the  interior  across  from  Chililaya,  the  port  of  La  Paz,  and  many  smaller  towns.  Some  of  these 
places  are  hundreds  of  miles  away,  and  all  freighting  is  done  by  pack  animals. 

A  successful  mining  industry  requires  rail  or  water  transportation.  Mining  machinery  is 
costly  and  heavy  and  can  not  be  introduced  where  pack-mule  transportation  is  necessary.  The 
securing  of  fuel  and  supplies  and  the  marketing  of  the  product  are  nearly  as  dependent  on  o-ood 
transportation  as  is  the  introduction  of  machinery.  Only  the  choicest  ores  can  be  carried  on 
mule  back,  while  the  metal  in  such  ores  is  almost  infinitesimal  in  comparison  with  that  contained 
in  the  low-grade  ores. 

\Vhen  the  railroads  thoroughly  open  up  the  Andean  Plateau  to  the  American  capitalist  and 
minmg  engmeer  there  will  be  abundant  opportunities  for  their  enterprise.  There  are  numerous 
mines  that  have  been  worked  and  abandoned  at  various  times  during  the  past  three  centuries,  and 
m  many  cases  their  refuse  ores  are  rich  enough  to  yield  good  dividends.  Not  only  can  the  old 
tailings  be  worked  at  a  profit,  but  many  of  the  abandoned  mines  themselves  can  be  reopened,  and 
the  ores,  the  early  workers  were  forced  to  leave,  will  make  a  good  return  when  scientifically  treated. 
The  mines  are  now  rarely  worked  beyond  a  few  hundred  feet,  because  they  are  not  ventilated, 
and  the  ore  is  taken  out  by  man  power.  With  modern  hoisting  machinery,  crushers,  mills' 
furnaces,  and  railroads,  the  mineral  output  can  be  verv  greatly  increased.  '  ' 

The  water  power  obtainable  from  mountains  of  tlie  plateau  makes  possible  the  use  of  elec- 
tricity instead  of  coal,  as  has  been  done  in  California  where  coal  is  scarce.  The  great  elevation 
of  the  mountains,  and  the  frequent  falls  in  the  constant  streams  that  flow  from  their  snow  fields 
and  glaciers,  combine  to  furnish  the  best  conditions  for  the  installation  of  electric  plants  driven 
by  water  power.  Some  of  the  most  important  mines  of  Mexico  are  now  being  operated  by  elec- 
tricity supplied  by  the  mountain  streams,  although  the  water  power  of  Mexico  is  slio-ht  as  com- 
pared with  that  of  the  Andes.  ° 

A  description  of  the  conditions  in  the  Cerro  Pasco  mining  district  in  Peru  will  show  more 
definitely  what  is  to  be  done  in  the  new  era  of  railroads  that  the  canal  will  help  to  introduce 
ihe  Cerro  Pasco  deposits  are  supposed  by  some  to  be  an  old  volcanic  crater,  covering  an  area  U 
nailes  long  and  three-fourths  of  a  mile  wide.  Here  are  2,000  veins  of  silver,  making  a  network 
through  the  hill  in  which  there  are  no  less  than  360  mines.  From  1630  to  1824  these  mines 
yielded  27,200  tons  of  pure  silver.  These  deposits  have  been  worked  only  250  feet  and  could  be 
drained  by  a  tunnel  of  smaller  magnitude  than  a  number  that  have  been  uiade  in  various  mines  in 
the  Rocky  Mountain  States.  After  the  building  of  a  railroad  the  introduction  of  the  necessary 
machinery  to  complete  this  tunnel  will  become  easv,  the  silver  deposits  will  again  become  work- 
able, and  a  new  lease  of  life  will  be  given  to  the  Cerro  Pasco  mines,  which  have  not  yet  been 
worked  to  a  tenth  of  the  depth  reached  in  many  mines  in  this  country. 

Underlying  the  silver  of  the  Cerro  Pasco  district  are  valuable  deposits  of  low-grade  copper. 
The  ore  containing  more  than  30  per  cent  of  copper  is  now  carried  90  miles  to  Casapaloa,  on  the 
Oroya  Railroad,  where  it  is  smelted  by  American  smelters  or  sent  by  rail  to  Callao  for  export  to 
Europe  by  way  of  Magellan.  At  the  present  time  more  than  a  thousand  tons  of  ore  per  month 
are  being  shipped  from  Cerro  Pasco  by  this  method,  and  some  of  the  lower  grade  ores  are  being 
treated  on  the  spot  by  using  coal  brought  from  good  deposits  but  a  few  miles  distant.  The 
present  difficulties  encountered  in  working  these  rich  mineral  deposits  are  shown  by  the  fact  that 
the  railroad  ties  for  tram  lines  at  the  mines  had  to  be  brought  by  pack  mules  from  the  railroad 
90  miles  away. 

A  railroad  will  ere  long  join  the  Cerro  Pasco  mines  with  the  Oroya  hne  at  the  town  of  Oroya, 


298  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

the  city  which  promises  to  become  the  railroad  center  of  that  part  of  the  plateau,  and  to  be  con- 
nected by  a  line  eastward  with  the  head  of  navigation  on  the  Perene,  one  of  the  branches  of  the 
Amazon,  where  tropical  products  can  be  secured  for  the  mining-  regions  around  Cerro  Pasco. 
Another  line  of  road  may  possibly  start  from  Oroya  southward  through  some  of  the  already 
populous  valleys  of  Peru  possessing  mineral  resources. 

ItELATION    OF    CANAL   TO    INDITSTRIES   AND    TRADE    OF    EASTERN    SLOPE    OF    ANDEAN    PLATEAU. 

The  thorough  development  of  the  resources  of  the  plateau,  by  the  building  of  railroads  and 
the  investment  of  foreign  capital,  will  necessarilj^  be  accompanied  by  an  enlarged  commerce  with 
the  eastern  slope  of  the  Andes.  The  people  of  the  greater  part  of  the  plateau  can  produce  only 
the  food  products  of  the  Temperate  Zone,  and  considerable  quantities  of  tropic  products  are  now 
brought  up  from  the  east  slope  at  great  expense.  Any  comprehensive  industrial  development  of 
the  plateau  will  make  necessary  the  building  of  railroads  to  carry  on  this  ti-ade  in  food  products 
needed  on  the  plateau.  There  are  many  fertile  valleys  in  the  east  slope  having  an  elevation  of 
over  5,000  feet,  and  resources  and  climate  suitable  to  a  great  variety  of  tropical  and  semitropical 
products.  Some  of  these  products  now  cross  the  Andes  and  are  exported.  The  eastern  Andes 
are  the  source  of  the  world's  supply  of  coca  leaves  for  the  manufacture  of  cocaine,  and  there  are 
many  coca  plantations  scattered  for  hundreds  of  miles  along  the  east  slopes  of  Peru  and  Bolivia. 
This  is  also  the  region  that  furnished  the  world's  supply  of  quinine,  before  its  systematic  cultiva- 
tion in  the  British  East  Indies,  and  the  Dutch  colonj^  of  Java  reduced  the  price  of  the  article  to 
one-thirtieth  the  former  figure,  and  ruined  the  owners  of  the  Peruvian  and  Bolivian  plantations. 

The  province  of  Cuzco,  in  eastern  Peru,  is  famous  for  its  cacao,  of  which  some  600  tons  per 
annum  are  already  sent  over  the  Andes  for  export.  These  same  valleys  produce  coffee,  about 
1,500  tons  of  which  now  cross  the  Peruvian  Andes  for  shipment  to  the  outside  world.  The  most 
favored  part  of  the  east  slope  is  in  Bolivia,  near  La  Paz,  where,  owing  to  a  bend  in  the  highlands, 
the  slope  is  toward  the  north  rather  than  toward  the  east,  causing  the  trade  winds  to  bring  less 
mist  and  rain  than  they  do  to  the  eastern  parts  of  Colombia  and  Ecuador.  The  rainfall  of  40  to 
75  inches  is  the  same  as  that  of  the  most  favored  parts  of  the  United  States,  and  the  climate  is 
said  by  American  travelers  to  resemble  that  of  California  and  to  produce  the  same  fruit  products. 
The  Yungas  Valley  in  this  section  is  noted  for  its  coffee. 

The  eastern  slopes  of  the  Andes  are  so  steep  as  to  make  an  ordinary  steam  railroad  expensive 
to  build  and  operate.  Coal  would  have  to  be  brought  from  the  Pacific  coast,  and  the  grades 
would  make  the  hauling  of  heavy  freight  expensive.  An  electric  railroad  can  be  built  here  more 
cheaply,  can  ascend  steeper  grades,  and  can  be  operated  by  the  unlimited  supply  of  water  power 
obtainable  from  the  La  Paz  River.  This  stream,  even  in  the  dry  season,  is  a  rushing  torrent  20 
feet  wide  and  3  feet  deep,  falling  10,000  feet  between  La  Paz  and  the  head  of  navigation  at 
Reyes,  200  miles  below.  In  some  places  rapids  have  a  fall  of  200  feet  in  half  a  mile.  The  valley 
through  which  the  electric  line  would  run  contains  several  towns,  one  with  6,000  and  another 
with  10,000  people.  Trade  is  carried  on  through  this  valley  to  La  Paz  and  the  treeless  plateau. 
In  the  vicinity  of  La  Paz  alone  there  are  100,000,  people  who  secure  a  part  of  their  food  supply 
and  all  of  their  wood  from  points  down  the  river,  by  expensive  pack-animal  transportation.  This 
electric  railroad,  however,  can  not  he  economically  built  or  profitably  operated  until  the  citj'  of 
La  Paz  itself  is  connected  by  rail  with  the  Pacific.  Such  an  extension  (155  miles)  is  planned  by 
the  Antofagasta  Company. 

When  a  railroad  has  been  built  across  the  plateau  and  connected  with  an  electric  line  coming 
up  from  the  plains  of  Bolivia,  there  will  probably  be  a  considerable  export  by  way  of  the  Pacific 
of  products  from  this  source.  The  alternative  route  is  by  the  Madeira  River  and  the  Lower 
Amazon,  but  the  engineering  difficulties  at  the  Madeira  Rapids  are  as  great  as  those  that  lie  in 
the  way  of  the  railroad  to  the  Pacific.  The  heat  and  dampness  of  the  Amazon  route  are  delete- 
rious to  many  products,  such  as  hides,  coffee,  coca,  and  cacao.  This  region  is  now  exjwrting 
these  products  by  way  of  the  Pacific  ports,  and  their  movement  in  that  direction  would  be  greatly 
increased  by  the  opening  of  such  a  railroad. 

On  the  edge  of  the  Sandia  and  Carabaj^a  region,  on  the  east  slope  of  the  Peruvian  Andes, 
near  Bolivia,  an  American  company  not  long  since  paid  $285,000  cash  for  a  mine,  carried 
machiner}'  to  it  at  a  cost  of  $250  per  ton,  and  is  now  crushing  quartz  ores  and  pa^'ing  dividends. 
In  the  past  the  Spaniards  secured  much  gold  from  the  eastern  rivers  of  Ecuador,  Peru,  and 
Bolivia. 

One  of  the  easiest  regions  to  reach  east  of  the  Andes  is  northern  Peru,  where  it  is  planned 
to  cross  the  narrowest  part  of  the  plateau  and  connect  the  Pacific  ports  with  the  headwaters  of 
the  Amazon.  This  road  is  partly  surveyed  and  has  been  begun  by  a  companj'  having  concessions 
to  work  a  large  coal  field  located  near  the  summit  of  the  Andes.  The  quality  of  this  coal  is 
reported  to  be  good,  and  the  deposits  extensive  and  easily  workable.     The  location  of  this  field 


PAN.ULl  CANAL  TRAFFIC  AND  TOLLS.  299 

near  the  divide  of  the  Andes  will  make  it  possible  to  send  coal  to  the  Pacific  and  to  the  navigable 
parts  of  the  Amazon,  thereby'  facilitating  steam  navigation  in  interior  Brazil. 

As  the  Upper  Amazon  is  a  swift  river,  and  the  head  of  navigation  ten  times  as  far  from  the 
Atlantic  as  it  is  fi-om  the  Pacific,  some  of  the  trade  of  the  Upper  Amazon  countr}'  will  come 
and  go  bj'  Pacific  ports  after  the  opening  of  the  isthmian  canal. 

Industrial  changes  on  the  plateau  and  eastern  slope  can  not  be  expected  to  make  much 
progress  until  better  connections  with  the  Atlantic  shall  have  been  provided.  After  this  event, 
the  exploitation  of  the  mineral  wealth  of  the  plateau  ma}-  be  expected  to  follow,  and  that  will 
require  the  opening  up  of  the  eastern  slope  as  a  source  of  food  supply  for  the  laborers  who  work 
the  mines. 

INDUSTRIES   OF   PACIFIC    SLOPE    OF   ECUADOR   AND   COLOMBIA. 

At  the  western  point  of  South  America  the  climate  of  the  coast  changes,  and  to  the  north- 
ward the  desert  gradually  gives  way  to  regions  of  increasing  rains.  The  ti'ansition  is  made 
gradually.  The  southern  part  of  the  Ecuadorian  coast  is  a  fertile  region  with  a  tropic  climate 
more  healthful  than  many  tropical  localities.  It  has  a  population  of  about  a  quarter  of  a  million, 
and  is  practically  the  only  part  of  Ecuador  engaging  in  foreign  trade,  the  interior  being  almost 
entirely  cut  oft'. 

The  greater  part  of  the  population  of  the  coast  plain  of  Ecuador  lives  in  the  valley  of  the 
Guayas  River,  on  which  is  situated  the  city  of  Guayaquil.  The  only  districts  at  present  product- 
ive are  those  of  the  lowlands,  served  by  water  transportation  on  the  rivers  centering  at  Guayaquil. 
This  river  system  is  navigated  by  many  native  boats  and  a  number  of  small  American -built 
paddle-wheel  steamers  of  tlie  Mississippi  River  type.  In  the  rainy  season  they  can  go  200  miles 
inland  and  bring  to  the  coast  the  export  produce.  The  soil  of  this  valley  produces  tropical 
products  in  abundance,  and  the  country  is  in  a  prosperous  condition.  The  exports  are  cacao, 
ivory  nuts,  rubber,  sugar,  coffee,  tobacco,  and  hides. 

The  cacao  is  of  excellent  quality  and  is  the  chief  crop.  It  is  exported  to  the  amount  of 
20,000  to  30,000  tons  per  year,  and  constitutes  one-third  of  the  world's  supplj%  At  present  more 
than  half  of  the  crop  is  produced  in  one  small  district,  but  it  is  estimated  that  19,000  squai'e 
miles  in  Ecuador  are  suitable  for  the  production  of  cacao,  an  article  of  which  the  world's  con- 
sumption is  increasing  about  5  or  6  per  cent  annually. 

The  ivory  nut  is  the  seed  of  a  variety  of  palm  that  grows  wild.  Seventeen  thousand  tons 
were  exported  in  1898,  chiefly  to  Europe,  where  it  is  used  in  the  manufacture  of  buttons.  In 
the  same  year  about  2,500  tons  of  coffee  were  exported,  $50,000  worth  of  tobacco,  and  consid- 
erable quantities  of  other  tropical  produce.  The  only  manufactured  export  is  the  so-called 
Panama  hat,  and  there  ai-e  practically  no  manufactures  of  home  products,  all  kinds  of  manufac- 
tured articles,  as  well  as  Temperate  Zone  food  products,  being  imported  from  the  United  States 
and  Europe. 

Ecuador  seems  to  have  mineral  wealth,  but  there  are  as  yet  no  wagon  roads  and  no  railways, 
nor  have  the  mineral  regions  been  much  explored.  There  are  quartz  gold  mines  in  the  south 
and  placer  mines  in  the  north,  both  being  operated  by  foreign  companies,  one  of  which  is  an 
American  firm,  said  to  be  doing  well.  Petroleum,  copper,  silver,  and  coal  are  reported,  but  at 
present  they  are  not  being  developed.  The  railroad  now  building  between  Guayaquil  and  the 
interior  will  bring  about  the  exploration  and  possibly  the  working  of  the  various  mineral  resources. 
This  railroad  will  bring  from  the  hills  to  the  lowlands  Temperate  Zone  products  which  must  now 
be  imported,  and  will  stimulate  the  trade  of  the  country  by  giving  nearlj'  a  million  people  their 
first  chance  to  trade  with  foreign  countries.  Any  increase  of  Ecuadorian  commerce  means  an 
increase  in  the  traffic  through  the  canal. 

The  I'ainfall  increases  from  northern  Ecuador  to  the  Isthmus  of  Panama,  the  shore  plain  of 
Colombia  being  marshy  and  unhealthful.  Its  forests  are  uninhabited  save  by  a  few  Indians  and 
half-breeds,  and  the  only  export  is  a  small  amount  of  timber,  although  in  some  places  vanilla  and 
cacao  are  indigenous.  The  forbidding  character  of  the  coastal  region  has  prevented  the  settle- 
ment of  the  higher  lands  on  the  foothills  of  the  Andes,  where  in  Ecuador  and  northward  there  are 
valleys  above  the  malaria  level  with  a  salubrious  climate  and  fertile  soil. 

THE    CAUCA   VALLEY,  IN    THE   COLOMBIAN   ANDES. 

The  Andean  Mountains  divide,  near  the  Ecuadorean  boundary,  into  three  great  ranges,  the 
easterly  one  bending  around  into  Venezuela,  the  western  one  trending  toward  the  Isthmus  of 
Panama,  and  the  central  one  separating  the  valleys  of  the  Magdalena  and  the  Cauca  rivers.  The 
Magdalena  Valle}'  has  its  trade  outlet  by  way  of  the  Caribbean;  but  the  mountains  of  Antioquia, 
in  Central  Colombia,  cut  off'  the  valley  of  the  Upper  Cauca  from  the  Atlantic  and  make  it  neces- 
sarj'  for  all  commerce  to  come  and  go  by  way  of  the  Pacific  through  the  port  of  Buenaventura. 


300  PANA^ALi  CANAL  TRAFFIC  AND   TOLLS. 

This  Cauca  Valley  is  in  the  Andean  region,  but,  unlike  the  other  parts  of  the  Andes  of  which 
we  have  spoken,  it  is  both  tropical  and  subtropical,  having  an  elevation  of  from  3,300  to  6,000 
feet.  The  valley  is  larger  than  the  State  of  New  Jersey,  and  contains  one  of  the  densest  popula- 
tions in  South  America.  There  are  half  a  million  people,  comprising  negroes  in  the  lower  portion 
of  the  valley,  and  Indians  and  a  considerable  white  population  in  the  adjacent  highlands.  This 
section  is  truly  Andean,  however,  inasmuch  as  it  is  cut  off  from  the  ocean  by  a  range  of  moun- 
tains and  has  to  depend  upon  pack-mule  transportation  for  all  of  its  commerce.  The  people  do  a 
little  gold  mining,  but  live  chiefly  by  agriculture,  importing  nearly  all  of  their  merchandise, 
except  some  domestic  manufactures  of  straw  hats,  coarse  cloths,  and  utensils. 

All  the  internal  traffic  of  the  vallej%  as  well  as  its  foreign  trade,  is  carried  over  trails,  the 
exports  of  agricultural  products  being  limited  to  the  most  valuable  articles,  such  as  coffee  and 
cacao  of  the  best  grades,  although  corn,  sugar,  tobacco,  and  fruits  are  cultivated  and  cattle  are 
raised.  Concessions  have  been  given  for  a  railroad  to  go  through  the  valley  from  the  port  of 
Buenaventura,  and  20  miles  of  the  line  have  been  built,  but  the  enterprise  has  come  to  a  stand- 
still. The  completion  of  this  line  and  the  opening  of  an  isthmian  canal  would  bring  the  produc- 
ing districts  of  the  valley  into  close  connection  with  the  commercial  world. 

At  present  Buenaventura  is  within  the  traffic  territory  of  the  Panama  railroad  and  steamship 
lines,  whose  freight  charges  are  high.  During  the  year  1900  such  typical  articles  as  wire  and 
nails  were  taken  from  New  York  to  China  for  $S  a  ton,  but  it  cost  $15  to  land  them  at  Buena- 
ventura, 7,000  miles  nearer.  From  there  the  costs  were  $8  per  ton  to  the  end  of  the  railroad 
and  §40  per  ton  additional  by  pack  mule  over  the  pass  of  the  Andes,  6,000  feet  in  elevation,  to 
Call,  77  miles  from  the  ocean.  The  mule  transportation  cost  70  cents  per  ton  per  mile.  After 
reaching  Call  some  of  the  goods  had  to  double  the  freight  charges  of  $63  per  ton  by  being  carried 
many  miles  up  and  down  the  valley.  At  the  same  time  the  steel  manufacturers  of  Pittsburg  were 
paying  an  ususually  high  freight  chiirge  of  $3. 60  per  ton  to  the  seaboard. 

The  opening  of  the  isthmian  canal,  the  building  of  the  railroad,  and  the  introduction  of  foreign 
capital  would  be  revolutionary  in  their  effect  upon  the  trade  of  the  Cauca  Valley.  The  first  effect 
of  the  building  of  the  railroad  would  be  to  increase  the  importation  of  machinery  for  agriculture 
and  the  smaller  industries.  The  continuation  of  the  railroad  up  and  down  the  valley  would  make 
it  the  route  of  transportation  to  the  promising  gold  mines  in  the  adjacent  provinces  of  Colimo 
and  Antioquia.     The  valley  would  export  coffee,  cacao,  animal  products,  and  raw  sugar. 

SUMilARY    OF    THE    EFFECT   WHICH    THE    CANAL   WILL    HAVE    ON    WESTEKN    SOUTH    AMERICA. 

Each  of  the  five  industrial  divisions,  discussed  above,  of  the  tropic  Pacific  section  of  South 
America  is  rich  in  resources  and  backward  in  industrial  development.  Capital  is  only  beginning 
to  overcome  the  difficulties  that  political  and  geographical  conditions  have  placed  in  the  way  of 
progress.  Nearly  all  of  this  region  is  still  in  the  pack-mule  stage  of  its  industrial  life.  The 
present  trade  conditions  there  are  more  backward  than  were  those  prevailing  in  the  trans-Missouri 
territories  of  the  United  States  fifty  or  sixty  years  ago.  At  that  time  Kansas  City  and  Fort 
Leavenworth  were  the  entrepots  of  a  brisk  and  thriving  trade  with  the  far  western  frontier. 
Every  spring  trains  of  covered  wagons,  ''prairie  schooners,"  went  across  the  great  plains  to  the 
Spanish  settlements  of  New  Mexico,  distributing  supplies  en  route  at  the  distant  settlements  and 
isolated  ranches  and  trading  posts  of  the  hard}'  pioneers  and  trappers  who  had  pushed  on  toward 
the  Rocky  Mountains.  Freight  rates,  ranging  from  $40  to  $200  per  ton,  excluded  from  trade 
all  articles  except  necessities  and  limited  the  return  cargo  to  such  valuable  commodities  as  furs, 
skins,  and  bullion.  If  we  substitute  the  pack  mule  for  the  more  efficient  prairie  schooner,  the 
above  description  applies  to  most  of  the  tropic  Pacific  section  of  South  America.  Limited  areas 
are  served  by  the  few  lines  of  railroad  and  b}'  some  river  steamboats. 

The  tropical  Pacific  section  has  twice  the  population  and  but  little  more  than  half  the  ti'ade 
of  the  temperate  Pacific  section.  The  3,000,000  people  of  the  temperate  region  carry  on  a  forign 
commerce  amounting  to  $100,000,000,  and  the  rest  of  the  west  coast  commerce  amounts  to  about 
$55,000,000.  The  exports  exceed  the  imports  by  about  $-1,000,000.  As  in  the  case  of  Chile,  the 
trade  is  nearly  all  witli  European  countries. 

Like  the  temperate  section,  the  tropic  region  produces  the  raw  materials  we  need  and  buys 
manufactures  we  might  supply.  The  British  cottons,  for  instance,  purchased  by  Ecuador  in 
1898  were  more  valuable  than  all  her  imports  from  this  countr}'.  After  the  isthmian  canal  is 
opened  our  cotton  mills  will  share  largely  in  that  trade.  The  canal  will  facilitate  the  develop- 
ment of  the  resources  of  the  tropic  Pacific  section,  and  thus  enlarge  the  sale  of  American  railway 
supplies  and  agricultural  and  mining  machinery.  The  purchasing  power  of  the  South  American 
people  will  increase,  and  trade  with  the  United  States  will  grow,  not  rapidly,  but  steadily,  and 
to  ultimately  important  dimensions. 


PAN.\.MA  CANAL  TKAFFIC   AXD  TOLLS.  301 

EFFECT   OF   CANAL   UPON   ATLANTIC    SOUTH    AMERICA    WILL   NOT   BE    GREAT. 

The  isthmian  canal  will  not  greatly  affect  the  Atlantic  countries  of  South  Amei'ica.  There 
is  at  present  no  direct  trade  between  the  two  coasts  of  South  America,  except  some  little  trade 
between  Chile  and  the  eastern  countries  of  South  America  by  way  of  the  Straits  of  ilagellan. 

The  exports  of  the  South  American  and  Central  American  countries  are  nearlj-  all  raw 
products,  and  there  is  no  raw  material  produced  on  one  coast  that  need  be  imported  by  the 
counti'ies  of  the  other  coast.  Rubber  is  the  great  staple  of  northern  Brazil,  but  Ecuador  and 
Central  America  are  exporting  some  rubber  across  the  Isthmus  to  the  Atlantic.  They  also  pro- 
duce coffee,  the  great  export  of  southern  Brazil,  and  cacao,  tlie  staple  of  Ecuador,  is  also  grown 
on  the  Atlantic  coast.  The  temperate  zone  products  needed  by  the  tropic  Atlantic  countries  of 
South  America  can  be  supplied  by  Argentina  and  the  United  States.  The  nitrate  of  Chile  is  not 
used  on  the  east  coast  of  South  America,  except  in  the  form  of  maniifactured  articles  made  in  the 
North  Atlantic  countries.  The  canal  may  have  some  slight  influence  in  reducing  the  cost  of  these. 
Should  Argentina  and  Uruguay  need  nitrate  or  other  Chilean  products,  the  natural  route  of  the 
trade  will  be  through  the  Straits  of  Magellan.  There  is  but  little  commerce,  present  or  prospec- 
tive, that  might  advantageously  go  from  the  one  coast  of  South  America  to  the  other  by  way  of 
an  isthmian  canal. 

The  countries  on  the  Pacific  between  the  United  States  and  South  America  have  exports  and 
imports  that  are  almost  identical  with  those  of  western  South  America,  and  the  statements  that 
apply  to  the  trade  between  the  two  coasts  of  South  America,  will  apply  to  any  commerce  between 
western  Central  America  or  Mexico  and  the  Atlantic  countries  of  South  America. 

The  western  United  States  and  Canada  export  some  products  to  Atlantic  South  America. 
There  have  been  occasional  shipments  of  wheat,  but  this  trade  has  about  disappeared  because  of 
the  competition  from  Argentina.  Our  Pacific  coast  lumber  is  used  in  Atlantic  South  America, 
and  this  is  probably  the  only  trade  that  will  require  the  passage  of  ships  directly  from  the  Pacific 
through  the  canal  to  these  countries.  The  temperate  part  of  the  Atlantic  coast  of  South  America, 
however,  will  get  its  Imuber  via  the  Straits  of  Magellan  or  Cape  Horn,  because  the  eastern 
projection  of  Brazil  makes  those  routes  shorter.  There  is  some  demand  on  the  Atlantic  coast  of 
South  America  for  our  canned  goods  and  wine  from  the  Pacific  coast,  but  such  imports  will  not 
be  sufficient  to  require  a  direct  trade.  The}'  will  probably  be  distributed  from  New  York, 
London,  or  some  West  Indian  port.  There  is  also  a  prospect  that  before  the  canal  is  opened  this 
demand  for  wine  and  fruit  products  will  be  wholly  or  in  part  supplied  by  Argentina,  which  is 
similar  in  climate  and  products. 

Australia  will  have  little,  if  anj"^,  trade  with  the  Atlantic  countries  of  South  America.  In 
the  oriental  countries  the  conditions  for  trade  are  somewhat  better,  although  they  will  not  need  to 
import  from  Atlantic  South  America,  because  Eastern  tropical  countries  are  much  nearer.  The 
people  of  Atlantic  South  America  will  import  oriental  articles — tea,  mattings,  silks,  and  curios — 
but  these  articles  will  hardly  be  desired  in  such  quantities  as  to  require  the  passage  of  vessels 
directly  from  the  Orient  through  the  canal  to  these  countries.  The  countries  of  that  part  of 
South  America  below  the  mouth  of  the  Amazon  will  draw  their  supplies  from  European  ports  or 
from  New  York. 

The  countries  between  the  Amazon  River  and  the  American  Isthmus  will  also  trade  with  the 
Orient  more  or  less  indirectly,  although  they  will  not  be  so  dependent,  as  countries  farther  south, 
upon  London  and  New  York  for  their  supplies  of  Pacific  products.  Some  West  Indian  city,  such 
as  St.  Thomas  or  Kingston,  will  doubtless  become  a  distributing  point  for  goods  that  come  through 
the  canal  and  are  destined  for  the  ports  of  the  West  Indies  and  northern  South  America.  The 
ports  are  now  visited  by  vessels  touching  at  various  places  in  northern  South  America,  Central 
America,  the  West  Indies,  and  Mexico. 

The  isthmian  canal  will  bestow  but  few  benefits  upon  the  Atlantic  countries  of  South  Amer- 
ica, because  nearly  all  of  their  trade  is  with  the  North  Atlantic.  The  greater  part  of  their  small 
commerce  with  the  Pacific  will  pi'obably  come  by  the  new  route,  and  there  will  be  some  direct 
cargoes  of  Pacific  coast  lumber.  The  cost  of  securing  oriental  products.  Pacific  coast  canned 
goods,  and  wine  will  be  somewhat  reduced.  These  commodities,  however,  will  probably  be  dis- 
tributed in  large  part  from  such  centers  as  New  York,  London,  or  Kingston,  Jamaica. 


Chapter  ^11. 
JAPAN  AND  THE  ISTHMIAN  CANAL. 

THE    SALIENT    CHARACTERISTICS   OF   JAPAN's    RESOURCES. 

The  4,000  mountainous  islands  of  Japan"  stretch  northeastwardly  alon^  the  coast  of  Asia  in 
the  latitude  comprised  ))ptween  South  Carolina  and  Maine.  The  climate,  like  that  of  our  own 
Atlantic  coast,  is  clianocuhli',  because  of  the  uncertain  direction  of  the  winds  from  the  great 
land  mass  to  the  westward,  although  extremes  are  less  in  Japan  than  on  the  Asiatic  mainland. 
The  winter  winds  blow  from  Siberia  across  the  Japan  Sea  and  produce  heav_y  snowfalls  on  the 
west  side  of  the  islands,  but  the  high  mountains  shelter  the  more  populous  eastern  slopes,  which 
are  warmed  l)y  the  Kuro  Siwo,  or  the  tropic  Japan  current. 

In  the  summer  both  coasts  receive  winds  from  the  ocean,  which  bring  abundant  rain,  amount- 
ing to  80  inches  per  annum  in  the  south — nearly  double  the  amount  that  falls  at  Philadelphia  or 
New  York.  The  humidity  of  the  climate  of  Japan  is  nearly  equal  to  that  of  England.  The 
ocean  currents  along  the  Asiatic  shore  are  similar  to  those  of  our  Atlantic  coast.  The  Japan 
current  meets  an  Arctic  stream  along  the  northern  islands  of  Japan  and  gives  the  shores  and  seas 
of  that  part  of  the  Empire  a  foggy  climate.  The  fishing  banks,  as  well  as  the  climate  of  that 
latitude,  correspond  with  those  of  Newfoundland. 

The  agricultural  resources  of  Japan  ai'e  relatively  meager,  because  of  the  infertility  of  the 
soil  and  the  small  amount  of  tillable  ground.  The  cultivable  ground — 12  per  cent  of  the  total 
area  of  the  country — is  fully  and  carefully  tilled,  mainly  by  hand  labor.  The  cultivation  of  tea 
occupies  a  prominent  place  in  the  agriculture  of  the  country.  The  chief  food  crop  is  rice, 
although  wheat,  barley,  potatoes,  and  tobacco  are  grown.  '  Fertilizers  have  to  be  used  abundantly, 
fish  from  the  northern  islands  of  the  Empire  and  bean  cake  from  Manchuria  having  long  been 
employed.  Latterly  some  South  Carolina  phosphates  have  been  purchased,  a  few  shiploads  of 
which  are  now  annually  imported.  The  phosphate  fertilizers  seem  well  adapted  to  the  Japanese 
needs,  and  the  construction  of  an  isthmian  canal  would  doubtless  largely  increase  their  importation. 

The  moist  climate  gives  Japan  a  varied  flora,  but  good  forage  is  everywhere  scarce,  owing 
to  the  preponderance  of  the  bamboo  type  of  vegetation.  There  are  onlj'  a  million  and  a  half 
horses  in  the  Empire,  while  the  number  of  cattle  is  slightly  less,  and  there  are  no  sheep.  Japan 
is  consequently  obliged  to  import  all  the  wool  and  woolens  used,  and  most  of  the  hides,  leather, 
dairy  and  meat  products  required. 

Japan  is  becoming  a  food-importing  country.  The  domestic  supply  of  rice  is  now  frequently 
insufficient.  There  is  no  sugar  grown  in  the  Empire.  There  is  now  some  flour  imported  from 
the  United  States,  and  with  the  progress  of  the  manufacturing  industries  of  the  Empire  increas- 
ing quantities  of  American  and  Australasian  breadstuUs  and  provisions  will  be  required.  The 
American  breadstufl's  will  come  from  the  Pacific  slope;  the  pi'ovisions  (meat  and  dairy  products) 
will  probably  come,  in  part  at  least,  from  the  central  section  of  the  United  States. 

Many  of  the  raw  materials  required  for  the  larger  manufacturing  industi'ies  are  deficient  or 
entirely  lacking  in  Japan.  Nevertheless,  the  country  is  certain  to  become  an  important  manu- 
facturing center.  The  materials  of  industry  of  which  Japan  possesses  the  most  abundant  supply 
are  timber,  raw  silk,  and  the  grasses  used  in  making  straw  braid  and  mattings.  Such  forest 
products  as  camphor,  vegetable  wax,  lacquer,  and  bamboo  are  the  basis  of  a  considerable  share 
of  Japan's  industries  and  exports.  The  prevalence  of  the  mulberry  tree  in  many  parts  of  the 
Empire  makes  possible  the  growth  and  favors  the  manufacture  of  silk. 

The  mineral  resources  of  Japan  are  especially  deficient.  There  is  a  small  export  of  copper, 
but  there  is  no  prospect  of  its  increasing.  At  present  very  little  gold  or  silver  mining  is  carried 
on,  but  the  introduction  of  western  machinery  may  result  in  some  development  of  the  mines. 
Japan  has  petroleum  fields,  but  the  exports  are  small  and  the  imports  are  much  larger  and  are 
increasing  rapidly.  New  fields  are  being  opened,  but  there  is  no  indication  that  they  will  be 
able  to  supply  the  requirements  of  tlie  countrj'.  The  coal  exports  of  Japan,  as  is  shown  in 
Chapter  VI  of  this  report,  are  increasing,  but  the  fields  are  limited,  and  the  demands  of  the  man- 
ufactures of  the  country  are  rapidly  growing.  The  price  of  coal  in  Japan  is  not  cheap,  it  being 
too  expensive  to  permit  much  development  of  iron  and  steel  industries,  although  there  are  iron- 
ore  deposits  in  the  northern  and  southern  parts  of  the  Empire.  The  recent  industrial  progress 
of  Japan  has  necessitated  the  importation  of  large  quantities  of  iron  and  steel  products,  the 
home  supply  in  1898  being  only  one-ninth  of  the  total  consumption. 

«  Consult  Plate  79  in  connection  with  this  chapter. 
302 


PANAilA  CANAL  TRAFFIC   AND   TOLLS.  303 

JAPAN    AS   A   IMANUFACTURING   AND   COMMERCIAL   COUNTRT. 

To  become  a  manufactui'iiig  nation,  in  the  modern  sense  of  the  term,  required  the  Japanese 
to  make  great  changes,  but  the  people  possess  the  faculty  of  adaptation  to  such  a  marked  degree 
that  it  required  only  thirty  years  for  them  to  adopt  the  ideals  of  western  civilization  and  many 
modern  processes,  and  to  change  from  an  isolated  nation  to  one  ambitious  to  participate  largely 
in  international  trade.  The  limited  area  of  Japan,  its  insular  position,  and  the  density  ot  its 
population  make  its  future  progress  conditional  upon  a  large  development  of  manufactures  and 
commerce.  The  area  of  the  Japanese  Empire,  exclusive  of  Formosa,  is  117,655  scjuare  miles,  or 
about  27,000  more  than  that  of  the  British  Isles;  the  population  being  44,000,000,  or  3,000,000 
more  than  the  inhabitants  of  the  United  Kingdom.  The  population  averages  296  to  the  mile, 
being  as  dense  as  that  of  France  and  eleven  times  as  dense  as  our  population. 

The  people  of  the  country  constitute  the  nation's  most  valuable  economic  resource.  They 
are  skillful,  artistic,  and  industrious  artisans,  and  their  high  birth  rate  assures  the  countrv  an 
abundant  supply  of  labor.  The  chief  obstacle  to  be  overcome  by  ,7apan  in  the  development  of 
her  industries  is  the  insulEcient  supplv  of  the  raw  materials  required  in  the  textile  and  iron  and 
steel  manufactures.  She  ■will  need  to  import  increasing  quantities  of  materials,  and  for  this 
reason,  if  for  no  other,  the  construction  of  the  isthmian  canal  is  a  matter  of  much  consequence 
to  her. 

The  chief  industrial  activity  of  Japan  centers  about  the  inland  sea,  or  Japanese  Mediterranean, 
about  which  live  nearly  half  of  the  people  of  the  Empire.  Surrounded  by  the  three  southern 
islands,  it  is  a  quiet,  safe  body  of  water,  upon  which  commerce  is  active.  There  are  three 
entrances  from  the  ocean,  manj-  indentations  into  the  land,  and  supplies  of  coal  exist  upon  its 
southern  shores.  Where  the  most  northerl}-  arm  of  the  inland  sea  reaches  toward  the  center  of 
the  mainland  of  Hondo,  stand  the  cities  of  Osaka  and  Hiogo,  which  were  fishing  villages  when 
Japan  was  opened  to  foreign  trade.  Now  they  contain  niore  than  a  million  people  and  have  secured 
the  commercial  supremacy  of  the  Empire.  They  are  growing  in  population  at  a  rate  equal  to  that 
of  the  manufacturing  cities  of  the  C  nited  States  and  Germany.  Osaka  is  the  manufacturing  center 
of  the  country,  and  within  a  radius  of  100  miles  are  to  be  found  16,000,000  people,  and  most  of  the 
large  cities  of  Japan.  It  manufactures  large  ({uantities  of  mattings  and  rugs,  and  is  the  chief 
exporting  point  for  tea.  In  181»5  it  received  more  than  half  of  the  total  imports  of  foi'eign 
commodities,  besides  having  a  heavj'  local  trafhc  in  rice,  tish,  timber,  and  edible  seaweed. 

Thirty  miles  inland  from  Osaka  is  Kioto,  the  old  capital  city  of  Japan,  now  connected  with  the 
seaboard  by  railroad,  telegraph,  and  canals.  The  citv  is  located  in  the  center  of  a  fertile  and 
densely  populated  plain  and  is  an  important  center  of  manufactures.  There  are  three  other 
Japanese  cities  of  importance  not  located  on  the  inland  sea — Tokyo,  Nagasaki,  and  Hakodate. 
Hakodate  is  the  fishing,  lumber,  and  mining  port  of  the  north,  and  is  located  near  the  northern 
coal  fields.  Nagasaki  is  at  the  southwestern  corner  of  the  Empire,  near  the  southern  coal  fields. 
It  exports  nearly  2,000,000  tons  of  coal  per  j'ear,  has  a  good  landlocked  harbor,  capacious  docks, 
and,  being  located  on  the  commonlj'  used  trade  route  between  America  and  Asia,  is  a  port  of  call 
for  nearly  all  merchant  ships  and  transports  connected  with  our  commercial  and  military  rela- 
tions with  the  East.  Midway  along  the  eastern  coast  is  Tokyo,  the  capital  of  the  Empire,  which 
had  about  700.000  people  in  1872  and  now  has  nearlj^  1,500,000,  its  area  and  population  being 
about  the  same  as  Philadelphia's.  Besides  being  the  capital  of  the  Empire,  it  is  the  main  center 
of  distribution  for  the  eastern  part  of  the  country  and  has  many  native  manufactures.  On 
account  of  the  sliallow  harbor  of  Tokyo,  most  of  its  foreign  trade  is  handled  at  Yokohama,  the 
the  chief  exporting  city  of  the  Empire,  with  a  population  of  100,000.  The  foreign  trade  of 
Tokyo  consists  of  silks,  tea,  camphor,  lacquer  ware,  and  other  Japanese  goods. 

The  growing  foreign  trade  of  Japan  will  make  her  a  competitor  with  America  and  Europe 
in  oriental  markets,  but  in  all  probability  the  seriousness  of  this  competition  has  been  greatly 
exaggerated.  This,  however,  need  hardly  be  considered  in  this  discussion  of  the  relation  of  the 
isthmian  canal  to  our  trade  with  Japan,  because  the  expansion  of  Japanese  industry  must  inevit- 
ably be  accompanied  by  large  purchases  and  sales  in  the  Central,  Southern,  and  Eastern  sections 
of  the  United  States.  The  most  serious  rivahy  between  the  Japanese  and  American  manufact- 
ures will  probably  be  in  cotton  textiles,  but  that  can  hardly  be  felt  for  .some  time  to  come,  because 
Japan  is  still  a  large  importer  of  cotton  goods,  and  her  numerous  population  is  rapidly  enlarging 
its  purchases. 

The  industrial  progress  of  the  Japanese  is  widening  their  range  of  imports  very  greatlj'. 
Wages 'are  rising  and  enabling  the  people  to  satisfy  new  wants,  and  compelling  capitalists  to 
introduce  labor-saving  machinery.  Although  much  has  been  said  of  the  economic  changes  going 
on  in  Japan,  her  industrial  revolution  is  only  begun.  The  complete  modernization  of  the  indus- 
trial and  social  life  of  Japan  will  yet  require  several  decades,  and  its  accomplishment  will 
necessitate  a  large  trade  with  the  United  States  and  Europe. 


304  panajvla.  canal  teaffic  and  tolls. 

ANALYSIS   OF   JAPANESE   TRADE    AVITH   REFERENCE    TO   EFFECTS   OF    THE    CANAL. 

The  combined  imports  and  exports  of  Japan  were  $13,000,000  in  1868,  $28,000,000  in  1878, 
165,000,000  in  1888,  and  about  $275,000,000  in  1901.  She  exports  silk,  straw  braid,  mattings, 
cotton  3'arns,  cotton  cloth,  coal,  tea,  camphor,  rice,  mushrooms,  and  miscellaneous  manufactures, 
and  imports  raw  cotton  and  cotton  manufactures,  woolens,  sugar,  rice,  beans,  peas,  oil  cake, 
steamships,  locomotives,  steel  rails,  iron  manufactures,  and  machinery.  The  chief  countries  with 
which  she  trades  are  China,  Cochin  China,  and  India,  the  United  Kingdom,  the  United  States, 
and  Germany.  From  Asiatic  countries  she  obtains  rice,  cotton,  beans,  and  peas.  From  Europe 
and  the  United  States  come  mainly  metal  manufactures,  dry  goods,  raw  cotton,  and  food  stuffs. 
The  percentage  of  the  total  exports  consisting  of  manufactures  is  increasing,  and  the  imports  are 
made  up  of  a  decreasing  percentage  of  manufactures,  as  would  naturally  be  expected  from  what 
has  been  said  concerning  the  diversification  of  industries  in  progress. 

While  the  development  of  Japan's  foreign  trade  has  been  very  rapid,  the  growth  of  our 
share  in  that  enlarging  trade  has  been  still  more  rapid.  In  1881  we  sold  Japan  less  than  6  per 
cent  of  her  importations,  but  in  1900  and  1901  our  sales  averaged  18  per  cent,  while  during  the 
same  period  the  part  furnished  by  England  declined  from  52  per  cent  to  21  per  cent  of  the  total. 
In  1896  our  exports  to  Japan  increased  81:  per  cent;  in  1897,  57  per  cent;  in  1898,  45  per  cent, 
and  since  1898  the  United  States  has  been  second  onlj'  to  Great  Britain  among  the  nations 
supplying  Japan  with  imports.  There  has  also  been  a  steady  growth  in  our  importations  from 
Japan,  and  while  they  have  not  grown  as  rapidly  as  our  sales  to  that  country,  they  have  a  higher 
total.  Her  raw  silk  is  the  chief  supply  for  our  mills,  and  her  tea,  mattings,  and  bric-a-brac  ai'e 
important  items.  The  growth  of  Japan's  trade  with  the  United  States  since  1892  has  been 
remarkable.  The  exports  to  the  United  States  gained  more  rapidly  than  those  to  Europe,  and 
we  have  become  Japan's  best  market. 

The  growth  that  has  taken  place  in  Japan's  imports  has  been  most  rapid  in  the  case  of  raw 
cotton,  woolen  goods,  flour,  railway  materials,  fertilizers,  tobacco,  leather  and  leather  manufac- 
tures, cotton-spinning  machinery,  and  paper,  and  it  is  especially'  interesting  to  note  that  many 
of  these  commodities  of  increased  import  are  furnished  by  the  United  States,  and  are  the  articles 
in  which  we  have  decided  advantages  of  production  or  manufacture,  to  wit:  Leather  goods,  flour, 
railroad  supplies  and  machinery  among  the  manufactures,  and  meat,  cotton,  tobacco,  and  phos- 
phate rock  among  the  raw  materials.  A  brief  reference  to  iron  goods,  cotton,  and  phosphates 
will  illusti'ate  our  interest  in  the  Japanese  import  trade. 

In  1896  we  furnished  one-sixth  of  the  rails  imported  into  Japan;  in  1898  our  share  was 
two-thirds.  We  already  have  a  large  part  of  the  trade  in  electrical  supplies,  and  also  furnish  a 
growing  proportion  of  nails  and  bridge  materials.  European  countries  lead  in  other  classes  of 
iron  manufactures.  The  growth  of  our  iron  trade  with  Japan  is  mainly  a  question  of  home 
demand  and  cheap  transportation  abroad.  As  freight  costs  are  reduced  the  Japanese  will  draw 
upon  us  in  larger  measure  for  railway  materials,  and  for  the  steel  needed  in  rebuilding  their 
cities  and  in  equipping  their  factories  with  machiner3^ 

The  importations  of  raw  cotton  into  Japan  increased  very  largely  until  the  recent  period  of 
abnormall}'  high  prices  set  in.  The  cotton  ports  of  New  Orleans  and  Galveston  are  the  most 
distant  of  our  seaboard  cities  from  the  Pacific  b}'  existing  water  routes.  At  the  present  time 
our  cotton  sales  in  Japan  consist  almost  entirely  of  the  raw  staple,  but  this  should  not  always 
continue.  In  1898  Japan  imported  60,000,000  yards  of  imbleached  muslin,  worth  §2,100,000,  and 
less  than  one-thousandth  of  it  came  from  this  country.  Direct  communication  between  our  South- 
ern mills  and  Japan  would  doubtless  enable  us  to  furnish  a  large  share  of  this  grade  of  cottons. 

The  soil  of  Japan  is  not  rich,  and  the  number  of  farm  animals  is  very  small.  The  increasing 
population  and  rising  standard  of  consumption  will  necessitate  the  highest  attainable  degree  of 
intensive  cultivation,  and  this  will  require  larger  supplies  of  fertilizers.  AVe  have  begun  export- 
ing to  Japan  oil  cake  and  phosphate,  of  which  articles  we  have  most  of  the  world's  supply,  but 
they  are  commodities  of  such  low  value  that  the  trade  can  not  increase  greatly  until  the  canal  has 
lowei'ed  the  costs  of  transportation.  Phosphate  rock,  worth  one-fourth  of  a  cent  a  pound  at  the 
seaboard,  is  a  good  illustration  of  the  class  of  cheap  goods  necessai'y  to  industrial  progress,  which 
can  be  carried  long  distances  only  by  water  transportation  of  the  most  economical  character. 

With  the  exception  of  the  Paciiic  coast  flour  and  canned  goods,  the  trade  of  this  country 
with  Japan  originates  in  the  manufacturing  East  and  in  the  Southern  States.  By  present  routes 
Europe  has  the  advantage.  The  canal  will  enable  us  to  supply  Japan  with  larger  amounts  of 
bulky  articles,  in  whose  cost  to  the  consumer  the  charges  for  freight  are  an  important  item.  We 
are  now  supplying  a  limited  quantity  of  such  articles,  but  under  better  freight  conditions  thei'e 
is  no  reason  why  that  trade  may  not  greatly  increase.  Examples  of  this  class  are  cement,  alcohol, 
condensed  milk,  glassware,  small  agricultural  implements,  iron  manufactures,  mining  machinery, 
locomotives  and  other  engines,  wire,  paint,  and  paper.  Cheaper  transportation  would,  moreover, 
enable  the  United  States  to  sell  some  of  the  lighter  as  well  as  the  heavier  commodities  to  Japan, 
and  increase  both  the  varietj'  and  quantit}'  of  our  exports  to  that  country. 


Chapter  XIII. 

CHINA   AND   THE    ISTHMIAN   CANAL. 

An  analysis  of  the  resources  and  industrial  conditions  of  China  presents  many  difficulties. 
The  Chinese  Empire  is  a  large  region,  with  a  great  diversity  of  resources,  concerning  which 
present  information  is  partial  and  jndctinite.  During  the  last  few  years  a  large  amount  of 
descriptive  literature  has  been  written  regarding  China,  but  definite  statistical  information, 
whether  of  a  private  or  an  official  nature,  is  very  scanty.  The  assertions  of  all  well-informed 
people  agree  in  representing  China  as  a  country  with  a  great  variety  of  valuable  natural 
resources.     The  population,  moreover,  is  usually  represented  as  being  industrially  efficient. 

Speaking  generally,  China"  is  to  be  thought  of  as  a  densely  populated  and  industrially 
undeveloped  country,  possessing  varied  and  abundant  resources,  which,  under  the  supervision  of 
capable  captains  of  industry,  can  be  made  the  basis  of  a  wide  range  of  economic  activities.  The 
questions  uppermost  in  this  discussion  are  whether  these  resources  and  activities  are  such  as  will 
be  affected  by  the  American  isthmian  canal,  and  whether  the  economic  progress  of  China  will  be 
accompanied  by  a  larger  trade  between  that  countiy  and  the  Atlantic  section  of  the  United 
States — that  section  whose  trade  with  trans-Pacific  countries  will  come  most  dii'ectly  under  the 
influences  of  the  canal. 

GEOGRAPHICAL    DIVISIONS   OF    CHINA. 

China  proper,  or,  as  it  is  sometimes  called,  the  Kingdom  of  China,  and  the  dependency  of 
Manchuria  consist  of  a  coastal  plain  and  a  plateau  of  mountainous  upland  region,  which  increases 
in  elevation  toward  the  west  and  tinall}'  merges  into  the  lofty  arid  plateaus  of  central  Asia.  The 
coastal  plain  is  mainlj'  of  alluvial  origin  and  is  200  miles  in  length  and  about  400  miles  in  breadth 
near  the  Yangtse,  below  which  region  it  rapidly  narrows  until  in  southern  China  it  extends 
inland  but  a  short  distance.  This  coastal  plain  is  extremely  fertile,  is  well  watered  and  highly 
cultivated.  Probably  half  the  people  of  the  entire  Chinese  Empire  dwell  in  this  section,  the 
density  of  wliose  population  may  be  illustrated  by  reference  to  the  province  of  Kiangsu,  which 
is  reputed  to  have  40,000,000  inhabitants  within  an  area  of  4(i,0(J0  square  miles. 

The  broad  mountainous  upland  region  lying  between  the  coastal  plain  and  the  arid  plateaus 
of  Tibet  and  Mongolia  are  supposed  to  be  relatively  fertile  and  are  known  to  possess  abundant 
stores  of  coal,  iron,  copper,  and  other  valuable  mineral  resources.  This  part  of  China  has  as  yet 
been  brought  but  little  under  the  influences  of  international  trade  and  western  civilization. 

China*  occupies  the  eastern  part  of  Asia  between  the  parallels  of  20^  and  50^  north  latitude. 
It  is  the  geographical  counterpart  of  that  portion  of  the  eastern  part  of  North  America  lying 
between  Cuba  and  Labrador.  Manchuria  is  in  the  latitude  of  northern  Quebec,  and  Canton, 
situated  just  within  the  Tropics,  has  the  latitude  of  Habana.  Northern  China  has  the  severe 
winter  climate  of  Canada,  while  Hongkong  and  Canton  have  the  climate  of  southern  Florida  and 
Cuba.  China,  consequently,  like  the  United  States,  has  a  great  variety  of  agricultural  products 
and  can,  within  its  own  borders,  produce  nearl}'  all  the  articles  required  by  its  people.  This  fact 
explains  why  it  has  been  possible  for  China  to  remain  for  four  thousand  years  practically  without 
intercourse  with  outside  nations. 

For  the  purposes  of  this  discussion  of  the  industries  and  trade  of  China,  and  the  effect  which 
a  canal  will  have  upon  them,  it  will  be  helpful  to  divide  China  into  three  geographic  zones.  The 
basis  of  division  is  a  dual  one,  resting  partly  upon  differences  in  climate  and  partly  upon  the 
physiography  of  the  country.  These  three  divisions  are  (1)  northern  China,  including  Manchu- 
ria,* the  Peiho  and  Hoangho  valleys,  and  the  peninsula  of  Shantung;  (2)  central  China,  comprising 
the  valley  of  the  Yangtse  River,  and  (.3)  southern  China,  comprised  mainly  within  the  valley  of 
the  Siho,  or  West  River.  The  northern  district  has  its  commercial  outlets  on  the  Gulf  of  Pechili 
and  corresponds  in  latitude  and  industrial  products  to  our  North  Atlantic  States  and  Canada. 

"Consult  Plate  80  in  connection  with  this  chapter. 

*  In  this  discussion  China  will  be  considered  to  include  Manchuria,  although,  strictly  speaking,  that  is  a  depend- 
ency of  the  Kingdom  of  China.  Whether  some  other  nation  than  China  will  make  Manchuria  a  dependency  is  a 
question  over  which  Russia  and  Japan  are  now  at  war. 

303 


306  PAK\]VrA   CAN.\L  TRAFFIC   AND  TOLLS. 

Pekin  is  on  the  fortieth  parallel,  the  one  that  passes  through  Philadelphia.  Central  China  corre- 
sponds more  nearly  to  the  South  Atlantic  and  Gulf  States  of  our  country.  Shanghai,  its  metrop- 
olis, is  in  the  latitude  of  Savannah,  Ga.  Southern  China  corresponds  in  latitude  and  production 
with  the  extreme  southern  portions  of  the  United  States  and  with  the  West  Indies. 

The  boundaries  of  these  divisions  are  not  everywheie  clearly  defined  physiographically, 
because  they  merge  into  each  other  in  the  coastal  plain.  They  are,  however,  sufficiently  distinct 
for  the  purposes  in  hand. 

RESOURCES   AND   TRADE    OF    NORTH    CHINA — MANCHURIA,    HOANGHO    VALLEY,    AND    SHANTUNG. 

Manchuria  lies  to  the  north  and  east  of  the  Great  Wall,  mainly  between  the  fortieth  and 
fiftieth  parallels  of  north  latitude.  It  extends  from  the  Gulf  of  Pechili  to  the  Amur  River. 
The  population  of  this  district  is  said  to  be  22,000,000. 

It  is  in  the  wheat  belt  of  China,  adapted  bj^  climate  and  fertility  of  soil  to  general  agriculture, 
and  is  reputed  to  be  a  region  of  a  fair  degree  of  fertilit^y.  It  possesses  extensive  forests,  some 
of  which  contain  valuable  hard  woods. 

Eighty  miles  north  of  Niuchwang,  in  Manchuria,  are  coal  deposits,  presumablj^  rich  and 
extensive.  These  coal  fields  are  crossed  bj'  the  railroad  from  Siberia  to  Port  Arthur.  Mining 
operations  will  doubtless  follow  the  restoration  of  peace,  and  will  include  not  only  the  develop- 
ment of  the  coal  mines,  but  also  the  mining  of  gold,  lead,  and  copper.  Gold  is  now  exported 
from  Manchuria. 

The  agricultural,  and  particularly  the  mineral,  resources  of  Manchuria,  like  those  of  China 
generally,  have  received  but  little  development,  because  of  the  lack  of  means  of  conmumication 
and  transportation  and  because  modern  methods  of  production  have  not  yet  been  introduced. 
The  people  of  Manchuria  seem  less  adverse  to  change  than  do  those  of  other  parts  of  China,  and 
it  is  probable  that  the  control  of  Manchuria  by  Russia  or  Japan  will  result,  not  onl}-  in  the 
establishment  of  railway  transportation,  but  also  in  the  introduction,  to  some  extent  at  least,  of 
modern  methods  of  production. 

Niuchwang  is  the  distributing  point  for  Manchuria,  the  imports  consisting  chiefly  of  cotton 
and  woolen  goods,  kerosene,  iron  and  steel,  and  general  manufactures.  Its  exports  comprise 
agricultural  and  mineral  products.  Niuchwang  and  Dalny  are  the  ports  of  China  nearest  to  the 
United  States,  and  our  export  trade  to  China  is  mainly  with  Manchuria,  about  half  of  the  imports 
of  that  district  being  from  our  country.  The  things  we  sell  in  Manchuria  consist  chiefly  of  cot- 
ton goods,  petroleum,  and  iron  and  steel  products,  commodities  produced  in  the  eastern  part  of 
the  United  States. 

Niuchwang  and  Dalny  will  become  exporting  points  and  distributing  centers  for  an  extensive 
district  reaching  as  far  inland  as  Lake  Baikal  in  southern  Siberia.  The  trade  of  eastern  Siberia 
and  of  Manchuria  will  always  be  handled  through  the  Pacific  rather  than  Baltic  ports.  Lake 
Baikal  is  farther  from  St.  Petersburg  than  San  Francisco  is  from  New  York,  and  the  railway 
from  St.  Petersburg  has  the  Ural  Mountains  and  heavy  grades  to  overcome.  This  fact  makes  it 
certain  that  the  heavy  commodities  imported  into  the  region  east  and  southeast  of  Lake  Baikal 
will  be  handled  through  Niuchwang,  Dalny,  Vladivostok,  and  other  Pacific  Asiatic  ports.  The 
imports  of  this  region  will  come  largely  from  the  United  States." 

The  Peiho  and  Hoangho  valleys,  the  second  subdivision  of  the  northern  section  of  China, 
are  supposed  to  contain  ))etween  80,000,000  and  100,000,000  people.  The  region  consists  of  a 
coastal  plain,  most  of  which  is  included  in  the  province  of  Pechili,  the  mountainous  district 
comprised  within  the  province  of  Shansi,  and  the  pastoral  and  agricultural  upland  provinces  of 
Shansi  and  Kansu  lying  to  the  west  of  the  mountains  of  Shansi. 

The  coastal  province  of  Pechili  is  drained  by  the  river  Peiho,  upon  which  the  cities  of  Tien- 
tsin and  Pekin  are  situated.  This  region  and  the  lower  basin  of  the  Hoangho  are  made  up  largely 
of  fertile  alluvial  soil,  from  the  products  of  which  a  dense  population  supports  itself.  In  the 
mountainous  province  of  Shansi  are  located  the  richest  coal  tields  of  China,  concerning  which 
much  has  been  said  by  Richtofen  and  all  travelers  who  have  explored  this  region.  It  is  probable 
that  one  of  the  earliest  resources  of  China  to  be  developed  in  the  future  will  be  the  coal  fields  of 
Shansi.  In  order  to  accomplish  this  it  will  be  necessary  to  extend  the  railroad  which  now  runs 
from  Tientsin  to  Pekin  into  the  mountains  lying  west  of  those  cities. 

In  the  westerly  part  of  the  Hoangho  Valle}^  is  the  province  of  Kansu,  which  extends  far  into 
the  arid  Mongolian  plateau.  The  province  is  well  adapted  to  grazing,  and  large  sections  of  it 
can  be  cultivated.  There  are,  moreover,  numerous  deposits  of  coal,  and  better  means  of  commu- 
nication and  production  would  enable  the  province  to  develop  a  domestic  and  foreign  trade  of 
considerable  proportions.     This  province  is  the  present  gateway  to  Mongolia  and  is  crossed  by 

oAnd  from  Japan  should  the  control  of  Manchuria  pass  to  Japan. 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS.  307 

the  caravan  route  from  Pekin  to  Turkestan.  The  exports  and  imports  of  the  region  west  of  the 
Shansi  Mountains  are  handled  over  this  caravan  route. 

The  city  of  Tientsin  is  in  the  commercial  center  for  the  Peiho  and  Hoangho  valleys.  The 
railroad  connecting  Tientsin  with  Pekin,  and  by  means  of  a  line  extending  northeast  ^yith  the 
coal  fields  of  the  Gulf  of  Pechili,  was  causing  the  population  and  commerce  of  Tientsin  to  increase 
rapidly  before  the  outbreak  of  the  Boxer  rebellion.  The  city  of  Tientsin  has  a  population 
said  to  number  1,000,000.  Its  commerce  doubled  between  1SS7  and  1897,  when  it  amounted 
to  65,059,017  taels,  or  $44,000,000.  In  1899  the  value  was  77.(><4,562  taels,  or  §61,000,000. 
Probably  the  most  important  imports  of  this  city  will  always  be  cotton  goods  and  iron  and  steel 
manufactures.  Our  ability  to  supply  those  goods  and  the  effect  which  the  canal  will  have  upon 
that  trade  have  been  sufficiently  emphasized  in  another  place  in  this  report. 

The  province  of  Shantung  comprises  that  part  of  the  coastal  plain  crossed  bj'  the  lower 
course  of  the  Hoangho  and  the  mountainous  peninsula  Having  the  same  name  as  the  province. 
One-half  of  this  district  is  tillable  and  the  other  half  contains  a  variety  of  minerals,  the  most 
valuable  of  which  is  coal.  There  are  four  coal  fields  now  being  worked  in  a  feeble  way  by  the 
natives,  but  which  the  Germans,  who  now  control  the  larger  part  of  Shantung,  expect  to  make 
highly  productive. 

The  Germans  have  taken  hold  of  the  development  of  the  peninsula  of  Shantung  in  a  vigorous 
way,  extensive  improvements  having  been  made  at  the  harbor  of  Kiaochau,  and  a  railroad 
280  miles  in  length  having  been  planned  and  partly  constructed.  It  is  expected  that  German 
capitalists  will  develop  the  mineral  and  other  resources  of  Shantung  at  an  early  date. 

Shantung  has  two  ports.  Chifu  and  Kiaochau,  the  latter  of  which  will  in  all  probability  become 
the  more  important  one.  The  exports  will  consist  mainly  of  minerals,  silk,  and  tobacco,  and  the 
imports  will  comprise  flour  and  provisions,  cotton  goods,  iron  and  steel,  and  other  manufactures. 
The  Germans  will  doubtless  endeavor  to  control  the  major  share  of  the  trade,  and  during  the  early 
years  of  their  occupation  they  will  in  all  probability  supply  most  of  the  iron  and  steel  and  other 
commodities  imported.  It  seems  probable,  however,  that  the  cotton  goods  will,  after  a  few  years 
at  least,  be  supplied  largely  by  the  United  States,  and  also  that  the  iron  and  steel  manufactures 
will  come  in  part  from  this  country.  If  the  Germans  succeed  in  organizing  efficienth^  the 
30,000,000  people  said  to  dwell  in  Shantung,  they  will  give  rise  to  a  large  foreign  trade  in  which 
the  United  States  will  unquestionably  have  a  share. 

RESOURCES   AND   TRADE    OF   CENTRAL   CHINA — THE   YANGTSE   VALLEY. 

The  great  central  portion  of  China  is  included  within  the  Yangtse  Valley,  which  in  general 
occupies  a  strip  of  country  extending  250  miles  on  each  side  of  the  thirtieth  parallel  of  latitude. 
It  is  the  largest  of  the  three  sections  in  which  China  has  been  divided  in  this  chapter,  and 
possesses  the  greatest  variety  and  abundance  of  natural  resources.  The  Yangtse  Valley  is  divided 
into  two  rather  distinct  parts  by  the  gorges  in  the  river  just  above  the  citj^  of  Ichang,  about  1,100 
miles  from  the  ocean. 

ProbabI}'  one-half  of  the  valley  below  the  gorges  consists  of  the  coastal  plain,  the  other  half 
being  upland  country.  The  great  silk  and  tea  districts  of  China  are  crossed  by  the  lower  course  of 
the  Yangtse  River.  Rice  and  cotton  constitute  other  productions  of  great  value.  The  population 
of  certain  sections  of  the  lower  course  of  the  Yangtse  is  probably  more  dense  than  that  of  any 
other  section  of  the  Kingdom. 

Although  the  most  valuable  resources  of  the  lower  valley  are  agricultural,  there  are  large 
stores  of  minerals,  particularly  coal,  which  is  known  to  exist  in  large  quantities  in  the  province 
of  Hunan  south  of  the  river.  In  the  mountainous  regions,  where  the  tributaries  of  the  Yangtse 
originate,  are  reported  to  exist  deposits  of  copper,  gold,  silver,  and  lead. 

The  Yangtse  Valley  above  the  gorges  is  an  extensive  rolling  country',  most  of  which  is 
included  within  the  province  of  Szechuan,  north  of  the  river,  and  Kweichau,  on  the  south  side  of 
the  stream.  Both  provinces  have  abundant  stores  of  coal,  copper,  iron,  tin,  lead,  and  the  precious 
metals.  Kweichau  is  a  more  distinctivelj'  mineral  region  than  Szechuan  is.  In  the  latter  prov- 
ince the  rice  crop  is  the  most  important  one,  but  wheat,  sugar,  opium,  and  fruits  can  be,  and  are, 
produced  to  some  extent.  The  climate  is  very  much  like  that  of  France.  Cotton,  the  chief 
material  from  which  clothing  is  made,  can  not  be  produced  in  the  province.  The  exports  from 
the  Upper  Yangtse  Valley  consist  of  hemp,  opium,  hides,  bristles,  wool,  wax,  and  some  silk. 
At  the  present  time  the  chief  imports  into  the  region  consist  of  cotton  goods. 

Very  little  credence  is  to  be  gi\en  to  the  statistics  of  Chinese  population,  which  must  always 
be  regarded  as  estimates.  There  are,  however,  said  to  be  70.000,000  people  in  the  Yangtse 
Valley  above  the  gorges,  and  whether  this  figure  be  right  or  not,  it  can  not  be  doubted  that  this 
interior  portion  of  China  must  in  time  become  the  center  of  a  large  domestic  and  foreign  trade. 
At  the  present  time  the  only  commercial  highway  is  the  Yangtse  River,  which  is  obstructed  not 


308  PANAIVIA  CANAL  TKAFFIC   AND   TOLLS. 

only  b}'  the  gorges  above  Ichang,  but  also,  and  more  seriously,  by  the  tax  officials  of  the  various 
local  governments  along  the  river." 

The  city  of  Shanghai,  at  the  mouth  of  the  Yangtse,  is  the  port  of  entry  for  the  whole  valley 
and  the  most  important  commercial  center  of  all  China.  Fifty-nine  per  cent  of  all  the  Chinese 
imports  and  48  per  cent  of  the  exports  are  handled  in  this  city.  There  is,  moreover,  some  pros- 
pect that  manufacturing  industries  will  be  successfully  developed  at  this  point;  some  beginnings 
have  already  been  made.  It  is  an  interesting  fact  that  most  of  the  trade  of  the  United  States 
with  China,  although  our  chief  markets  are  in  Manchuria  and  the  northern  part  of  the  Kingdom, 
is  handled  through  Shanghai,  that  city  being  the  distributing  point  not  only  for  the  Yangtse 
Valley,  but  for  North  China  as  well. 

About  seven  hundred  miles  up  the  Yangtse  River  is  the  city  of  Hankau,  the  most  important 
interior  distribu;  ig  oint  in  the  Kingdom.  By  means  of  the  Yangtse  and  its  branches  from  the 
north  and  south  it  has  water  conuectibn  extending  in  all  directions,  and  from  it  nine  provinces 
of  China  can  he  reached.  The  city  is  accessible  to  seagoing  vessels  and,  consequently,  has  a  large 
trade  directly  with  foreign  countries.  It  is  the  market  place  for  traders  from  various  parts  of 
China,  and  its  central  location  in  the  fertile  section  of  the  Kingdom  makes  it  the  point  of  ship- 
ment for  a  large  part  of  the  export  trade  of  central  China. 

The  evidence  is  conclusive  that  the  great  Yangtse  Valley  of  central  China,  comparable  as 
regards  area  and  wealth  of  agricultural  and  mineral  resources  with  our  Mississippi  Valley,  is 
destined  to  become  industrially  and  commercially  important  when  its  resources  and  great  supplj^ 
of  labor  can  be  organized.  The  time  can  not  be  far  distant  when  capital  will  provide  means 
of  transportation  and  develop  the  natural  resources  of  the  country.  When  this  is  done  the 
region  will  surely  have  a  large  import  trade  in  the  class  of  manufactures  produced  in  the  Eastern 
and  Southern  sections  of  the  United  States.  Those  parts  of  the  United  States,  moreover,  will 
require  the  silk,  wool,  and  other  raw  materials  of  industry  from  the  Yangtse  Valley,  the  present 
exportations  of  which  are  but  a  fraction  of  what  they  might  be  made. 

RESOURCES   AND   TRADE    OF   SOUTHERN    CHINA. 

The  southern  district  of  China  is  situated  on  both  sides  of  the  Tropic  of  Cancer,  and  includes 
the  coastal  region  of  the  province  of  Fukien  and  the  territory  drained  by  the  Siho  or  West  River 
and  its  tributaries. 

The  products  are  almost  entirely  agricultui-al,  and  are  those  of  the  tropical  and  subtropical 
regions.  Silk,  tea,  rice,  sugar,  opium,  camphor,  and  various  medicinal  plants  are  grown  and 
exported  in  greater  or  less  quantity.  The  manufactures  of  the  region  are  all  handmade,  and 
consist  of  mattings,  silks,  lacquer  ware,  embroideries,  and  the  sails  required  for  the  domestic 
shipping. 

The  upper  valleys  of  the  West  River  and  its  tributaries  contain  mineral  resources,  and  these 
might,  without  great  expense,  be  made  accessible  by  improvements  in  the  river  navigation. 
Southern  China,  like  the  rest  of  the  country,  however,  is  still  industrially  undeveloped,  and  must 
remain  so  until  a  government  can  have  been  established  that  will  be  strong  enough  to  protect 
personal  and  property  rights. 

The  city  of  Hongkong,  on  an  island  at  the  mouth  of  the  West  River,  is  the  main  port  of 
southern  China,  and  next  to  Shanghai  the  most  important  one  on  the  Pacific  coast  of  Asia. 
Besides  Hongkong,  the  cities  of  Amoj^  and  Fuchau,  on  the  coast  to  the  east  and  north  of  Hong- 
kong, are  growing  centers  of  commei-ce. 

It  is  said  that  Hongkong  is  the  distributing  point  for  80,000,000  people,  and  its  position  is 
such  that  its  trade  must  grow  pari  passu  with  the  development  of  southern  China.  The  city  is 
about  equally  distant  from  New  York  by  the  Suez  and  American  isthmian  routes.  At  the  present 
time  its  trade  with  the  Atlantic  part  of  the  United  States  as  well  as  with  Europe  is  handled  by 
way  of  the  Suez.  After  the  American  canal  has  been  opened  the  trade  of  Hongkong  and  all 
southern  China  generally,  will  probably  be  divided  between  the  easterly  and  westerly  canal 
routes.  One  reason  why  the  westerly  route  will  obtain  a  share  of  the  trade  is  that  Hongkong  is 
the  terminal  port  for  vessels  outbound  across  the  Pacific  from  the  United  States.  At  pi'esent 
nearly  all  the  lines  from  British  Columbia  and  our  west  coast  ports  call  at  Japanese  ports, 
Shanghai,  and  Hongkong.  After  the  canal  has  been  opened  vessels  crossing  the  North  Pacific 
from  America  to  Asia  will  naturally  call  at  Japanese  and  Central  Chinese  ports  and  proceed  to 
Hongkong  or  Manila.  Southern  China  and  the  Philippines  are  in  the  region  whose  commerce 
will  be  competed  for  by  both  routes.  When  the  American  canal  has  been  opened  the  traflic  will 
be  divided  between  the  two  canals,  and  the  exporters  of  that  region  will  profit  by  the  competi- 
tion of  the  two  routes. 

"  Possibly  the  treaty  of  1904  between  China  and  the  United  States  together  with  treaties  between  China  and 
other  nations  may  result  in  the  abolition  of  the  likin  taxes,  but  this  is  at  least  doubtful. 


PAN.IAIA  CAN.VL   TRAFFIC   AND   TOLLS.  309 

THE    FOREIGN   TRADE   OF   CHINA. 

The  aggregate  foreign  trade  of  China  in  1901  was  valued  at  ■438,000,000  taels  ($350,000,000), 
of  which  268,000,000  taels  were  imports  and  170,000,000  were  exports.  In  1897  the  total  foreign 
trade  amounted  to  367,000,000  taels  (§i391:,000,000).  While  this  total  seems  fairly  large,  the 
amount  of  trade  per  cai^ita  is  extremely  small,  barely  one  dollar  per  person.  There  are  some 
countries  with  natural  resources  inferior  to  those  of  China  whose  foreign  trade  is  from  twenty- 
five  to  one  hundred  times  as  much  per  person.  The  foregoing  analj'sis  is  suilicient  to  show  that 
the  resources  and  labor  supply  of  China  are  ample  to  support  extensive  industries  capable  of 
giving  rise  to  a  large  foreign  trade,  were  the  political  and  social  conditions  favorable  to  economic 
progress. 

Whether  and  to  what  extent  the  present  untoward  political  and  social  conditions  of  China  can 
be  improved  constitutes  the  Chinese  cjuestion.  If  the  powers  succeed  in  securing  for  China  a 
stable  and  fairly  progressive  government  under  which  the  individual  and  society  may  develop 
industrial!}',  there  can  be  no  question  but  that  the  foreign  commerce  of  China  will  reach  large 
proportions. 

The  truth  of  this  statement  is  clearly  shown  by  what  occurred  during  the  five  years  preced- 
ing the  outbreak  of  the  Boxer  revolution.  During  tho.se  j'ears  comparativelv  rapid  progress  was 
being  made  in  the  woi'k  preparator}'  to  rendering  the  natural  resources  of  the  country  available. 
Mining  concessions  were  obtained  by  various  capitalists,  railroads  were  under  construction,  and 
there  was  everj^  indication  that  the  natural  wealth  of  China  was  to  be  made  to  contribute  largely 
to  international  trade.  In  1899  the  total  ti'ade  was  21:  per  cent  more  than  that  of  the  preceding 
year  and  double  that  of  the  year  1890. 

The  most  important  imports  into  China  arc  cotton  goods,  which  comprise  over  a  third  of  the 
total  inbound  trade.  The  commodity  next  in  rank  is  opium,  which  is  followed  b}'  kerosene, 
metals,  coal,  woolen  goods,  and  a  variety  of  other  commodities.  Silk,  raw  and  manufactured, 
i"anks  first  among  the  exports,  tea  being  next  in  importance.  Among  the  other  exports  of 
consequence  are  straw  braid,  sugar,  hides,  clothing,  paper,  and  pottery.  At  the  present  time 
Great  Britain  controls  more  of  this  trade  than  an}'  other  country,  but  her  share  of  the  total  is 
decreasing.  An  analysis  of  our  trade  with  China  will  show  that  the  opposite  is  the  case  with  our 
commercial  relations. 

TRADE    OF    Xj-NITED   STATES   WITH    CHINA    AND    EFFECTS   OF   CANAL. 

The  trade  of  the  United  States  with  China  included  aliout  §27,000,000  worth  of  impoits  into 
this  country  and  nearly  §19,000,000  worth  of  exports  to  China  during  the  year  ending  June  30, 
1903.  This  total  of  $46,000,000  indicates  an  increase  of  100  per  cent  within  a  decade.  The  most 
rapid  growth  has  taken  place  in  our  exports  of  cotton  goods.  The  value  of  cotton  sheetings  sent 
to  China  in  1899  exceeded  the  value  of  our  total  annual  exports  to  that  country  for  theyeai-s  pre- 
ceding 1896.  Next  to  cotton  goods,  our  leading  article  of  exportation  is  kerosene  oil,  but  in  addi- 
tion we  are  selling  increasing  quantities  of  iron  and  steel,  breadstuffs,  lumber,  and  general  manu- 
factures. Among  the  articles  which  we  import  from  China,  silk,  raw  and  manufactured,  holds 
first  place,  and  tea  occupies  the  second  position.  These  two  articles  comprise  over  half  the  total 
value  of  the  imports.  Raw  wool,  hides,  skins,  and  furs,  straw  braid,  and  a  variety  of  curios 
make  up  the  larger  share  of  the  other  articles  imported. 

The  rapid. ty  with  which  our  trade  in  China  is  gi-owing  may  be  shown  by  a  few  comparisons. 
During  the  three  years  ending  in  1899  the  total  imports  of  Shanghai  increased  50  per  cent  and 
those  from  the  United  States  were  doubletl.  Our  imports  of  Chinese  goods  direct  from  China 
(i.  e.,  exclusive  of  the  Hongkong  trade)  are  now  nearly  double  what  those  of  the  United  Kingdom 
are.  Moreover,  the  Chinese  statistics  do  not  give  us  credit  for  all  the  trade  we  have  with  the 
country.  Some  of  our  trade  is  handled  by  way  of  Europe  and  credited  to  European  countries, 
while  another  large  share  goes  from  New  York  by  way  of  the  Suez  Canal  to  Hongkong,  whence 
it  is  distributed  in  China.  It  appears  as  imports  into  Hongkong  and  as  exports  from  that 
city  to  China.  All  nations,  both  oriental  and  western,  handle  more  or  less  of  their  trade 
with  China  through  Hongkong.  Apparently  the  trade  of  the  L^^nited  States  with  Hongkong 
direct  is  two-thirds  as  large  as  Great  Britain's  is.  A  French  commission  sent  out  to  China  in 
1895  to  study  the  trade  situation  added  63  per  cent  to  the  figures  of  American  trade  to  cover  the 
amount  that  entered  China  by  indirect  routes,  and  there  is  no  indication  that  any  important 
change  has  taken  place  since  then  in  the  routing  of  trade  such  as  would  have  changed  the  per- 
centage of  our  indirect  as  compared  with  our  direct  shipments. 

The  general  relation  of  an  isthmian  canal  to  our  trade  with  China  may  be  easily  and  briefly 
stated.  The  breadstuffs  and  lumber  which  we  export  across  the  Pacific  will  unquestionably  be 
sent  from  the  Pacific  coast.  The  same  will  be  true  of  the  lighter  manufactures  of  high  value  per 
34998°— 12 21 


310  PANAMA  CANAL  TKAFFIC  AND   TOLLS. 

bulk.  Should  we  develop  any  considerable  trade  in  provisions,  the  main  source  will  be  east  of  the 
Rocky  Mountains.  The  iron  and  steel,  general  manufactures,  kerosene,  and  cotton  goods  will  be 
exported  from  the  eastern  and  southern  sections  of  our  country.  They  will  unquestionabl}^  con- 
stitute canal  traffic,  and  their  sale  will  be  largely  facilitated  by  that  waterway. 

Our  kerosene  trade  in  China  is  already  feeling  very  keenly  the  competition  of  Java  and 
Russia,  and  our  exporters  are  able  to  hold  their  trade  only  because  they  have  developed  unusually 
economical  means  of  transportation. 

Probably  our  exportation  of  cotton  goods  will  be  affected  more  favorabl}'  by  the  canal  than 
will  any  other  class  of  goods  sent  to  China,  with  the  possible  exception  of  heavy  manufactures 
of  iron  and  steel.  It  is  estimated  that  70  per  cent  of  the  cottons  expoited  from  this  country  to 
China  are  manufactured  in  the  Southern  States,  the  section  nearest  to  the  canal.  At  the  present 
time  four-lifths  of  these  exports  go  by  wa}'  of  the  Suez  Canal,  the  other  fifth  being  sent  across  the 
continent,  largely  by  way  of  the  Canadian  Pacific  Railway.  Moreover,  the  foreign  destination  of 
these  goods  is  nearly  all  in  nortiiern  China,  that  part  of  the  country  nearest  to  the  United  States 
by  way  of  the  isthmian  canal  and  most  remote  from  us  by  way  of  the  Suez.  Even  under  the 
present  unfavorable  conditions  of  competition  we  are  securing  control  of  the  larger  part  of  the 
cotton-goods  trade  of  northern  China.  During  the  past  decade  the  imports  of  cotton  goods 
into  that  section  from  England  and  Dutch  countries  declined  over  50  per  cent,  whereas  ours 
increased  400  per  cent  during  the  same  period.  With  the  canal  to  assist  us  in  the  development 
of  ttiis  trade,  it  seems  certain  that  we  can  not  only  control  the  business,  but  can  do  it  with  a  large 
margin  of  profit. 

Shoulcl  the  anticipated  industrial  development  of  Cliina  occur,  will  the  country  become  inde- 
pendent of  foreign  trade?  "Will  it  supplj^  its  own  needs?  Not  a  little  has  been  heard  regarding 
the  danger  of  Chinese  development  to  American  labor  and  American  industries.  The  fear  has 
no  basis  in  experience.  In  general  it  may  be  said  that  our  trade  is  greatest  with  those  countries 
whose  industrial  development  has  reached  the  highest  stage  of  evolution,  and  that  our  commerce 
increases  in  proportion  to  the  economic  progress  of  the  country  traded  with.  Japan  is  a  case  in 
point.  The  large  development  now  in  progress  in  that  Empire  is  being  accompanied  by  a  very 
rapid  growth  in  her  trade  with  the  United  States.  The  same  is  true  in  a  less  degree  of  Chile, 
and  would  be  true  in  a  much  greater  degree  if  we  were  able  to  trade  with  Chile  under  favorable 
conditions  of  transportation. 

Industrial  development  and  economic  progress  are  always  accompanied  by  an  increase  in 
wages  and  a  rise  in  the  standard  of  life.  If  foreign  nations  succeed  in  oi'ganizing  the  industrial 
forces  of  China,  they  will  also  succeed  in  greatly  multiplying  the  wants  of  the  people  and  laying 
the  foundation  for  a  much  larger  trade  between  that  country  and  all  jDarts  of  the  world. 


Chapter  XIV. 

THE    CANAL   AND   THE    INDUSTRIES   AND   TRADE   OF   AUSTRALASIA. 

There  is  possitily  no  part  of  the  world  outside  of  Europe  and  the  United  States  that  has  a 
more  promising  commercial  future  than  Australia.  The  area  of  the  island  continent  of  Australia 
is  about  equal  to  that  of  the  United  States,  exclusive  of  Alaska  and  the  colonies,  each  having 
somewhat  less  than  3,000.000  square  miles  of  territory.  The  densitv  of  the  population  of  the 
two  countries  is,  however,  very  different,  for  in  1901  there  were  but  3.'77l,715  people  in  all  Aus- 
tralia, a  smaller  number  than  there  are  in  Illinois  or  Ohio,  not  to  mention  the  still  more  popidous 
States  of  Pennsylvania  and  New  York.  In  spite  of  its  small  population,  Australia  is  a  region 
having  an  enormous  commerce,  the  average  trade  per  capita  being  one  hundred  times  that  of'the 
Chinese  people.  This  enonuous  trade  results  partly  from  the  nature  of  the  industries  of  the 
country,  and  partly  from  the  character  of  the  populat'ion,  which  is  nearlv  all  British.  The  people 
have  a  very  large  average  per  capita  wealth,  and  their  standard  of  living  is  high.  They  import 
large  quantities  of  manufactures,  which  they  are  able  to  purchase  because  of  the  vigor  and  energy 
employed  in  the  development  of  the  abundant  natural  resources  of  the  virgin  continent. 

AUSTRALIAN    INDUSTRIES   REQUIRE    A    LARGE    FOREIGN    TRADE. 

The  rapid  development  of  the  natural  resources  of  Australia  could  not  take  place  without  an 
immense  foreign  trade.  The  chief  industries"  are  pastoral,  agricultural,  and  mineral,  all  of  which 
can  be  carried  on  M'ith  a  comparatively  limited  supply  of  labor.  The  vast  area  of  the  country 
and  the  fact  that  but  a  small  portion  of  the  territory  has  yet  been  occupied  make  certain  the 
continuance,  without  very  great  change,  of  the  present  industrial  conditions  of  the  country  for 
several  decades.  Although  the  country  possesses  liberal  stores  of  minerals  other  than  the 
precious  metals,  there  is  little  prospect  of  tlie  early  development  of  industries  upon  which  highly 
developed  manufactures  must  rest.  The  three  mo'st  essential  requisites  to  diversiiied  manufac- 
tures are  cheap  labor,  cheap  and  abundant  coal  and  iron,  and  surplus  capital  seeking  investment. 
Although  Australia  has  coal  and  iron,  labor  and  capital  are  so  scarce  that  fuel  and  steel  must 
necessarily  be  more  expensive  than  they  are  in  Europe  and  the  United  States,  where  most  of  the 
world's  manufacturing  is  done  at  the  present  time.  For  some  time  to  come  the  profits  in  the 
pastoral  and  agricultural  industries,  and  in  the  mining  of  precious  metals,  will  continue  to  offer 
greater  inducement  than  can  the  manufacturing  industries.  This  is  equivalent  to  saying  that 
Australia  will,  for  several  decades  at  least,  continue  to  export  great  quantities  of  food"  supplies 
and  raw  materials  in  exchange  for  manufactures. 

.  ^"  Australia's  total  foreign  commerce  of  over  §350,000,000  worth  of  goods  annually,  the 
United  States  has  a  large  and  rapidly  increasing  share.  The  development  of  our  manufactures 
will  require  constantly  larger  quantities  of  the  exports  of  Australia,  and  our  export  trade  to  that 
country  is  certain  to  be  of  constantly  increasing  importance  to  us. 

THE    CANAL   AND    DISTANCES   TO    AUSTRALIA. 

The  distances  from  New  York  and  our  North  Atlantic  ports  to  Australia  by  way  of  the  Suez 
Canal  and  by  way  of  the  Cape  of  Good  Hope  arepracticallv  the  same;  consequently 'all  our  direct 
commerce  with  Australia  moves  around  the  Cape.  In  the" tables  included  in  Chapter  XVII,  the 
distances  from  our  Atlantic  and  Gulf  ports  to  Australian  cities  by  way  of  the  Cape  of  Good  Hope 
route,  and  the  proposed  American  Canal  are  compared.  Bv  referring  to  the  table  it  will  be  seen 
that  New  York  is  3,S0f)  miles  nearer  Sydney  bv  wav  of  the  Panama  Canal  than  by  way  of  the 
route  followed  by  vessels  going  to  Sydney  by  way  of  the  Cape  of  Good  Hope.  Adelaide,  the 
most  westerly  port  of  the  industrially  important  part  of  Australia,  will  be  1,640  miles  nearer  New 
York  and  3,209  miles  nearer  New  Orleans  by  way  of  the  Nicaragua  Canal  than  by  Good  Hope. 

A  map*  accompanying  Chapter  XVII  sHows  the  line  connecting  the  points  equidistant  from 

«  See  Plate  81.  6See  Plate  86. 


312  PANAJVIA  CANAL  TEAFFIG  AND   TOLLS. 

New  York  by  way  of  the  Nicaragua  and  Suez  routes,  and  it  will  be  seen  that  the  line  crosses  the 
western  part  of  Australia  and  touches  the  continent  of  Asia  west  of  Hongkong."  These  refer- 
ences to  distances  are  sufficient  to  show  that  the  industrially  and  commercially  important  half  of 
Australia  will  be  brought  from  eight  to  fifteen  days  nearer  our  eastern  seaboard  by  the  con- 
struction of  an  isthmian  canal. 

The  tables  of  Chapter  XVII  show  that  the  entire  continent  of  Australia  is  nearer  Liverpool 
by  way  of  the  Suez  Canal  than  it  will  be  by  way  of  the  American  isthmian  route.  Attention 
maj'  be  called  to  the  fact,  however,  that  Sydne_y  will  be  only  357  miles  farther  from  Liverpool  by 
the  Panama  route  than  by  the  Suez.  The  line  connecting  points  equidistant  from  Liverpool  by 
way  of  the  two  routes  pa.sses  between  New  Zealand  and  Australia  and  east  of  the  main  island  of 
Japan. 

The  Suez  route  to  Australia  is  shorter  for  European  commerce  tiian  is  the  Cxood  Hope  route, 
but  the  ditierence  is  not  enough  to  induce  slow  freight  steamers  to  use  the  canal,  the  tolls  of 
which  amount  to  about  |2  per  net  ton,  British  measurement.'  Letters  I'eceived  from  European 
steamship  companies  show  that  about  the  only  steamers  between  Europe  and  Australia  using  the 
canal  are  those  which  carry  passengers  and  mails.  The  slow-going  freighters  practically  all  go 
aroimd  the  Cape.  As  compared  with  the  Good  Hope  route  between  Europe  and  Australia,  the 
American  canal  line  would  be  shorter.  The  east  coast  of  Australia  will  be  almost  equidistant 
from  Liverpool  by  the  easterly  and  westerly  canal  routes.  The  significance  of  this  is  enhanced 
by  the  fact  that  over  half  the  commerce  of  Australia  is  handled  at  Sydney,  which  port  is  made 
by  all  vessels,  whether  from  Europe  or  from  the  United  States.  These  references  to  distances, 
however,  are  not  intended  to  imply  that  distance  is  the  only  fact  determining  the  routes  taken 
by  vessels. 

GENERAL    GEOGRAPHY    OF   AUSTRALIA. 

The  continent  of  Australia  is  situated  between  10°  and  -iO^  south  latitude,  somewhat  over 
half  of  the  continent  being  south  of  the  Tropic  of  Capricorn.  The  island  is  regular  in  shape,  has 
a  coast  line  but  little  broken,  and  consists  of  a  comparatively  narrow  rim  of  well- watered  and 
fertile  country,  within  which  is  a  vast  stretch  of  semiarid  and  arid  country,  much  of  which  has 
an  annual  rainfall  of  10  inches  or  less.  Almost  all  the  mountains  are  situated  near  the  coast,  the 
highest  ones  being  the  Australian  Alps,  which  run  parallel  to  the  eastern  and  southeastern  shore 
about  50  to  75  miles  from  the  ocean.  The  average  height  of  this  range  is  1,500  feet,  the  peaks 
rising  to  5,000  and  6,500  feet.  The  eastern  slopes  are  everywhere  well  watered,  and  this  portion 
of  Australia  is  the  most  fertile  and  thickly  settled  part  of  the  continent. 

The  western  slopes  of  these  mountains  are  very  gradual,  and  are  drained  by  the  Murray  and 
Darling  rivers  and  tlieir  tributaries,  which  together  have  a  basin  as  largo  as  that  of  the  St.  Law- 
rence or  the  Danube.  This  is  the  great  grazing  section  of  Australia.  The  eastern  and  southern 
sections  of  the  basin,  however,  have  a  rainfall  of  25  to  40  inches,  and  are  adapted  to  cereal 
agriculture. 

The  eastern  third  of  Austi-alia  is  divided  into  three  political  divisions,  Queensland  occupying 
the  northern  half  of  this  eastern  section.  South  of  Queensland  is  New  South  Wales,  below  which 
is  Victoria.  The  most  populous  and  productive  parts  of  Australia  are  New  South  Wales  and 
Victoria.  These  colonies  occupy  a  region  corresponding  in  latitude  to  that  of  the  United  States 
between  New  York  City  and  Jacksonville.  South  Australia  consists  of  the  central  third  of  Aus- 
tralia, west  of  which  is  the  great  tract  of  western  Australia.  Both  of  these  divisions  are  arid 
except  within  the  narrow  rim  near  the  ocean,  and  in  the  tropical  northern  sections  where  the 
trade  winds,  unobstructed  by  anj^  coastal  mountains,  give  the  country  abundant  rainfuU.  But 
little  of  the  tropical  section  of  Australia  has  as  j^et  been  occupied  because  the  British  colonists 
have  not  found  the  region  healthful. 

PASTORAL   AND   AGRICULTURAL   RESOURCES.  '' 

From  the  first  years  of  its  settlement  Australia  has  been  celebrated  as  a  grazing  region. 
Everywhere,  with  the  exception  of  the  tropical  lowlands  and  the  interior  desert  sections,  the 
climate  is  favorable  to  sheep  and  cattle,  and  the  forage  is  al)undant. 

The  most  important  grazing  district  of  Australia  is  the  large  interior  basin  of  the  Murray 
River  and  its  tributaries,  where  a  large  part  of  the  country  is  taken  up  with  the  cattle  and  sheep 

"Had  the  )ines  on  the  map  been  drawn  with  reference  to  the  Panama  and  Suez  routes  the  location  of  the  lines 
would  have  been  somewhat  but  not  greatly  different.  On  plat«  74  the  differences  between  the  distances  by  the 
Nicaragua  and  Panama  routes  are  stated. 

6  The  Suez  toll  is  now  8.50  francs  a  ton,  net  register,  Danube  measurement.  As  is  explained  in  Chapter  XXII, 
that  is  equal  to  about  $2  a  ton,  net  register,  British  or  American  measurement. 

c  See  Plate  81. 


PANAMA  CAN  AT.  TRAFFIC   AND   TOLLS.  313 

ranches.  The  more  populous  sections  of  the  countrj^  between  the  Australian  Alps  and  the 
eastern  and  southern  coasts  are  changing  from  grazing  to  dairying,  Australia  having  become  an 
exporter  of  large  quantities  of  dairy  products. 

A  few  statistics  regarding  the  number  and  value  of  the  cattle  and  sheep  of  Australia  will 
serve  to  illustrate  the  importance  of  the  grazing  and  dairying  industries  of  the  country'.  Despite 
several  years  of  drought,  during  the  period  since  1S06,  there  were  72,000,000  sheep  in  Australia 
in  190L  The  figures  for  the  United  States  for  that  3'ear  were  59,756,000;  but  for  the  beginning 
of  1904  only  51,630,000.  New  South  Wales  alone  frequently  has  as  many  sheep  as  the  whole  of 
the  United  States.  The  Australian  wool  furnishes  one-fourth  of  the  world's  supply,  and  is  of 
the  finest  qualit}'.  During  the  past  decade  it  has  been  worth  $120,000,000  per  annum  on  an 
average,  and  in  addition  to  this,  $80,000,000  have  been  anmiall}'  derived  from  the  meat  and  other 
animal  products.  This  total  of  $200,000,000  per  year  amounts  to  over  $50  for  each  person  in 
Australia. 

The  agricultural  industries  of  Australia  include  the  raising  of  grain,  the  growing  of  fruits, 
and  the  production  of  sugar.  The  grain-producing  districts  lie  on  both  sides  of  the  Cordilleran 
Alps  in  New  South  Wales  and  in  Victoria  and  on  the  shores  of  Spencer  Gulf,  in  South  Australia. 
The  colony  of  Victoria,  whose  area  and  population  are  about  the  same  as  those  of  Nebraska, 
has  grown  a  maximum  wheat  crop  of  20,000,000  bushels  in  one  3'ear.  This  was  in  1S98,  when 
half  as  many  bushels  were  raised  in  the  neighborhood  of  Spencer  Gulf,  South  Australia.  Aus- 
tralia can  not,  however,  be  regarded  as  a  verj^  favorable  wheat-growing  country,  because  of  the 
uncertainty  of  the  rainfall  in  man}'  parts  of  the  wheat-growing  sections.  Irrigation  is  being 
extensively  resorted  to,  and  it  will  doubtless  enable  the  country  to  support  a  great  many  more 
cattle  and  sheep,  to  increase  the  annual  grain  production,  and  to  enlai'ge  the  acreage  of  its  fruit 
orchards. 

Horticulture  is  rapidly  developing  in  Australia.  The  lower  regions  of  the  subtropical  and 
tropical  districts  produce  the  fruits  usually  grown  in  the  climate  of  those  regions,  and  the  upland 
districts  of  the  more  southerly  and  temperate  colonies  are  adapted  to  the  production  of  grapes, 
apples,  pears,  plums,  and  similar  fruits.  In  the  Victorian  part  of  the  Murray  River  Valley 
there  are  said  to  be  forty  corporations  holding  concessions  aggregating  2,000,000  acres,  under 
which  they  are  developing  irrigation  projects,  mainly  for  the  purpose  of  growing  fi'uits.  In  the 
neighborhood  of  Wallaroo,  north  of  Adelaide,  there  is  an  irrigation  system  using  670  miles  of 
iron  and  steel  pipe,  by  which  water  is  distributed  to  places  25  to  75  miles  distant.  This  region 
produced  1,080,000  gallons  of  wine  in  1898.  The  exports  of  fruit  from  the  region  are  growing 
and  promise  to  constitute  an  important  industry. 

The  tropical  portion  of  Queensland  has  the  beginnings  of  what  will  doubtless  become  a  large 
sugar  industrj'.  The  yearl}-  crop  amounts  to  160,000  or  180,000  tons,  a  total  of  more  than  half 
the  average  annual  product  of  Louisiana. 

The  agricultural  resources  of  Australia  are  such  that  the  country  must  continue  to  be  an 
important  exporter  of  food  products  for  many  decades.  There  is,  and  will  long  continue  to  be, 
a  surplus  of  breadstuffs.  Wool,  meat,  hides,  and  dairy  products  will  long  be  produced  in  such 
abundance  as  to  necessitate  a  large  sale  of  them  abroad.  Other  promising  future  agricultural 
exports  are  wine,  tobacco,  and  sugar.  One-fourth  of  the  world's  wool  is  now  grown  in  Australia. 
In  the  future  we  shall  want  increasing  quantities  of  this  article  and  of  hides  and  skins. 

I  MINERAL    RESOURCES. 

The  mineral  industries"  of  Australia  rank  high  in  the  statistics,  both  of  production  and  of 
foreign  conmierce.  Gold,  silver,  copper,  and  coal  are  the  most  extensivelj'  mined,  although  by 
no  means  the  only  minerals  existing  in  the  counti"v. 

The  annual  export  of  gold  from  Australia  is,  in  round  numbers,  $60,000,000.  The  industry 
has  passed  the  uncertain  stage  of  placer  mining  and  now  consists  mainly  of  the  reduction  of 
quartz  ore.  Most  of  the  gold  fields  are  in  the  mountains  of  eastern  Australia,  but  quartz  reefs, 
situated  in  the  arid  plains  of  the  western  pai-t  of  the  continent,  are  now  yielding  a  large  percentage 
of  the  total  output.  These  mines  in  western  Australia  have  added  much  to  the  annual  production 
of  the  country. 

Australia  ranks  third  among  the  silver-producing  countries  of  the  world,  being  outclassed 
only  by  the  United  States  and  ^Mexico.  Her  product  is  about  one-tenth  that  of  the  entire  world. 
The  mines  are  located  mainly  in  the  eastern  part  of  the  country. 

The  copper  mines  of  Australia  yielded  18,000  tons  of  the  metal  in  1898,  the  product  having 
doubled  in  four  years.  Lead  and  tin  are  both  exported,  and  various  other  metals  are  produced 
in  small  quantities. 

a  See  Plate  81. 


314  PAAT.UIA  CANAL  TKAFFIC   ANT)  TOLLS. 

In  Chapter  VI,  dealing  with  the  coal  supply  for  the  commerce  of  the  Pacific,  the  coal  trade 
of  Australia  was  discussed  at  some  length.  The  field  from  which  the  present  supplies  are  mainly 
drawn  is  a  comparatively  small  one  of  3,000  square  miles  in  area,  situated  close  by  the  city  of 
Newcastle,  62  miles  north  of  Sydney,  the  most  important  port  of  Australia.  There  are  other 
larger  fields  in  the  mountainous  sections  of  the  country,  of  which  use  will  be  made  as  the  demand 
for  fuel  increases.  The  present  exportation  of  coal  from  Australia,  as  has  already'  been  explained, 
is  facilitated  bj-  the  large  tonnage  of  vessels  leaving  the  country  in  ballast.  This  explains  why 
the  western  part  of  the  United  States,  South  America,  Hawaii,  and  the  Philippines,  as  well  as 
the  East  Indies,  use  more  or  less  Australian  coal. 

The  value  of  the  minerals  exported  from  Australia  averat;es  $100,000,000  per  j-ear,  more 
than  $25  for  each  person.  This  is  a  very  large  amount  of  trade  for  any  one  class  of  industries 
to  give  rise  to,  and  it  shows  the  great  productive  capabilities  of  the  Australians.  The  chief 
significance  to  the  United  States  of  this  great  Australian  mineral  industry  is  that  it  necessitates 
a  large  foi'eign  trade  in  mining  machinery  and  general  manufactures.  As  was  stated  at  the 
beginning  of  this  chapter,  the  industrial  conditions  of  Australia  are  not  such  as  to  make  profitable 
the  development  of  the  iron  industries,  and  of  the  manufactures  based  upon  crude  iron  and 
steel.  Consequently,  the  expensive  machiner}'  for  the  development  of  the  mines,  the  railway 
material,  and  the  manufactures  required  by  the  mining  population  must  be  imported.  American 
manufacturers  have  been  especially  successful  in  making  mining  machinery,  and  their  products 
have  gone  all  over  the  world.  In  Chapter  IV,  on  the  Central  West,  the  experience  of  a  Chicago 
manufacturer  was  cited.  This,  and  numerous  other  firms  in  different  parts  of  the  United  States, 
now  have  a  large  foreign  trade  in  mining  machiner}-  in  man}-  sections  of  the  world. 

THE    CANAL    AND   THE    COMMERCE    OF   AUSTRALIA   WITH    THE    UNITED    STATES. 

In  considering  the  foreign  trade  of  Australia,  the  fact  must  be  kept  in  mind  that  the  statis- 
tics of  the  commerce  of  the  various  Australian  States  include,  not  only  the  trade  which  they  have 
with  countries  outside  of  Australia,  but  with  the  various  parts  of  Australia.  The  statement 
made  at  the  beginning  of  this  chapter  that  the  foreign  trade  of  Australia  amounted  to  $3.50,000,000 
per  annum — a  sum  equal  to  §^100  per  capita — referred  only  to  the  trade  of  the  various  Australian 
States  with  countries  outside  of  Australia.  This  total  of  the  foreign  commerce  of  Australia 
equals  half  that  of  all  South  America,  and  is  as  large  as  our  foreign  trade  was  fifty  j-ears  ago. 
The  per  capita  average  is  nearly  four  times  that  of  the  United  States  at  the  jiresent  time.  There 
is,  moreover,  no  doubt  of  the  continuance  of  this  large  foreign  commerce.  The  nature  of  the 
industries  being  such  that  a  heavy  foreign  trade  is  requisite  to  their  development,  the  fact  that  the 
various  Australian  Commonwealths  have  constructed  efficient  railway  systems,  which  are  l)eing 
extended  as  necessity  requires,  the  industrial  aptitude  of  the  people — all  these  factors  combine  to 
assure  the  future  commercial  importance  of  Australia. 

Although  the  Australian  imports  are  increasing  rapidly,  our  shai-e  in  those  imports  is  growing- 
more  rapidly  than  their  total.  In  fact,  our  export  trade  into  Australia  is  increasing  faster  than 
that  to  any  other  country  except  those  of  eastern  Asia.  Between  1890  and  1900  our  exports  to 
Europe  increased  52  per  cent,  those  to  South  America  one-half  of  1  per  cent,  while  our  exports 
to  Oceania  increased  157  per  cent.  The  greater  part  of  this  commerce  with  Oceania  was  with  the 
continent  of  Australia,  in  everj^  State  of  which  the  use  of  our  manufactures  is  increasing.  New 
South  Wales,  for  instance,  during  the  last  decade  increased  its  total  trade  40  per  cent,  but  the 
imports  from  the  United  States  rose  184  per  cent  during  the  ten  years.  In  1900  our  total  exports 
to  Australia  were  valued  at  ^26, 725, 702;  in  1903  at  §32,510,118,  whereas  in  1889  their  value  was 
$12,252,147.  Our  direct  imports  from  that  countiy  have  not  increased  since  1896.  It  is  probable, 
nevertheless,  that  we  are  using  a  larger  quantity  of  Australian  wool  than  we  did  ten  years  ago. 
Most  of  this  wool,  however,  comes  to  us  by  way  of  London,  and  appears  in  the  statistics  of  our 
trade  with  the  United  Kingdom.     We  are  now  sending  to  Australia  a  large  variety  of  commodities. 

The  preeminent  rank  of  the  city  of  Sydney  in  the  foreign  trade  of  Australia  is  a  fact  of  much 
significance  in  this  discussion.  Ninety-seven  per  cent  of  the  trade  of  New  South  Wales  is  handled 
through  that  port,  and  nearly  one-half  of  the  total  commerce  of  the  Australian  States  with  nations 
outside  of  the  continent  of  Australia  is  carried  on  at  the  port  of  Sydnej*.  This  city  is  the  com- 
mercial metropolis  of  Australia,  and  is  the  point  from  which  a  large  share  of  the  imports  from 
Atlantic  countries  is  distributed  throughout  Australia  and  the  adjacent  islands.  The  city  of 
Melbourne  is  another  distributing  point,  but  its  importance  has  declined  as  compared  with 
Sydney,  because  of  the  greater  facilities  possessed  Iiy  the  latter  port  for  the  transshipment  of 
commodities. 

The  fact  that  the  coasting  trade  of  Australia  centers  so  largely  in  Sydney  and  Melbourne  is 
interesting  in  this  connection,  because  those  ports  are  so  situated  that  they  will  be  brought  many 
days  nearer  to  the  eastern  half  of  the  United  States  hj  the  construction  of  the  isthmian  canal. 


PAN.ULi  CANAL  TRAFFIC   .^STD   TOLLS.  315 

The  influences  of  the  isthmian  canal  upon  our  Australian  commerce  will  afi^ect  our  trade  in  a 
large  variety  of  commodities.  Our  growing  exports  of  iron  and  steel  manufactures  and  other 
heavy  articles  are  being  supplemented  by  an  increasing  exportation  of  lighter  commodities,  and 
when  the  canal  has  removed  our  present  handicap,  arising  from  the  disadvantages  regarding  dis- 
tances which  we  at  present  have  in  competing  with  Eurojje,  our  commerce  with  Australia  will  be 
carried  on  under  much  more  favorable  conditions.  The  traffic  between  Australia  and  the  eastern 
and  southern  sections  of  the  United  States  by  way  of  the  canal  will  be  large,  unless  the  tolls  of  that 
waterway  should  be  placed  so  high  as  to  be  prohibitory.  Li  Chapter  XXII  the  question  of  tolls 
is  considered  at  length,  and  it  is  there  shown  that  a  toll  of  ?1  per  vessel  ton  net  register  would 
not  restrict  the  use  of  the  canal  by  our  Australian  commei'ce.  The  maintenance  of  the  present 
Suez  Canal  tolls,  which  are  equivalent  to  S2  per  net  register  ton,  British  measurement,  and  the 
imposition  of  the  toll  of  si  per  ton  or  less  for  the  use  of  the  American  canal  would  be  of  much 
assistance  to  the  American  waterway.  In  the  chapter  on  tolls  emphasis  is  laid  upon  the  necessity 
of  adopting  a  schedule  of  tolls  for  the  American  canal  that  "will  not  prevent  its  being  used  by  the 
traffic  of  Australia  and  western  South  America. 


NEW  ZEALAXD  AND  THE  CANAL. 

New  Zealand  is  almost  exactly  antipodal  to  the  United  Kingdom.  The  construction  of  a 
Panama  Canal  will  bring  Wellington  1,313  miles  nearer  Europe  by  that  route  than  by  the  Suez. 
That  city  will  be  2,522  miles  nearer  New  York  by  a  Panama  Canal  than  by  way  of  the  Straits  of 
Magellan. 

The  islands  of  New  Zealand  "  bear  some  resemblance  to  the  United  Kingdom  in  shape,  area, 
and  climate.  Within  their  area  of  104,500  square  miles  there  are  at  present  less  than  800,000 
people.     The  climate  is  admirabh'  adapted  to  raising  grain,  cattle,  and  sheep. 

The  chief  industry  of  the  islands  is  the  raising  of  sheep  and  the  exportation  of  mutton  and 
wool.  The  islands  now  have  20,000,000  sheep  and  the  annual  exports  of  mutton  to  the  United 
Kingdom  exceed  $10,000,000  in  value. 

The  mountains  of  New  Zealand,  like  those  of  Australia,  are  well  stocked  with  minerals.  The 
output  of  the  gold  mines  amounted  to  §8,600,000  in  1901.  Most  of  this,  however,  was  secured 
from  placer  mines,  although  the  woi'king  of  the  (juartz  deposits  has  been  begun.  The  mountain 
streams  of  the  country  furnish  an  abundant  supply  of  water  power  for  mining  and  other  indus- 
trial purposes. 

Over  a  million  and  a  quarter  tons  of  coal  are  annually  mined,  the  output  of  which  can  and 
will  be  increased  in  proportion  to  the  demand  for  fuel.  It  hardly  need  oe  said  that  the  iron 
deposits  of  New  Zealand  have  not  yet  been  worked.  A  country  that  is  still  mainly  in  the  grazing 
stage  of  industry  is  several  decades  ahead  of  the  exploitation  of  its  iron  mines. 

The  mineral  resource  of  New  Zealand  which  is  of  interest  to  the  people  of  the  United  States 
is  the  kauri  gum,  from  which  varnish  is  made.  This  gum  is  a  fossil  resin  dug  up  from  the  sites 
of  old  forests,  and  the  supply,  it  is  said,  is  sufficient  to  last  for  several  decades.  On  an  average 
nearly  10,000  tons  of  this  gum,  valued  at  §3,000,000,  are  exported,  and  a  large  part  of  it  comes 
to  the  United  Stiites. 

The  comnjerce  of  New  Zealand  is  larger  per  capita  than  that  of  Australia,  being  over  §120 
per  person.  The  total  commerce,  with  a  value  of  over  $100,000,000  per  year,  is  mainlj-  controlled 
by  (rreat  Britain,  but  the  United  States  has  a  respectable  and  increasing  share  of  the  trade. 
During  the  nine  vears  ending  in  1898  our  trade  with  New  Zealand  increased  108  per  cent,  our 
total  trade  in  1898'  amounting  to  about  §7,000,000.  In  1901  the  value  was  §9,500,000,  a  gain  of 
36  per  cent  over  1898. 

New  Zealand  has  good  shipping  facilities  for  foreign  trade,  the  Government  is  developing 
the  railway'  S3'stem  rapidly,  and  the  natural  resources  of  the  country  maj-  be  expected  to  con- 
tribute increasing  quantities  to  international  trade.  There  is  no  more  probability  of  the  develop- 
ment of  manufactures  in  New  Zealand  than  in  Australia.  The  islands  will  continue  to  export 
food  products  and  raw  materials  in  exchange  for  manufactures. 

The  opening  of  the  Panama  Canal  will  bring  the  city  of  New  York  5,541  miles  nearer  to  New 
Zealand  than  it  is  by  the  Good  Hope  and  Australia  route,  and  the  distances  lietween  the  Eastern 
cities  of  the  United  States  and  that  country  will  be  from  2,500  to  3,500  miles  shorter  than  by 
way  of  the  Straits  of  Magellan.  Seven-eighths  of  our  exports  to  New  Zealand  are  sent  from  the 
Atlantic  coast.  These  exports  include  mineral  oils,  tobacco,  machinery,  hardware,  wire  and  wire 
nails,  car*'iages,  carriage  materials,  patent  medicines,  and  boots  and  shoes.  The  volume  and 
variety  of  our  present  commerce  carried  on  by  the  circuitous  route  around  Africa  is  evidence 
that  the  opening  of  the  American  canal  will  have  important  effects  upon  our  New  Zealand  trade. 

o  See  Plate  82. 


Chapter  XV. 

THE   CANAL,   AND   THE   PHILIPPINES   AND   HAWAII.   , 

I.    THE    PHILIPPINES/' 

Our  present  commerce  with  the  Philippines  is  cari'ied  on  mainly  by  the  Suez  Canal  route  and 
frequently  by  way  of  some  European  port.  A  minor  but  increasing  share  of  the  trade  is  shipped 
through  our  west-coast  ports  and  across  the  Pacific  Ocean  to  Hongkong.  A  glance  at  Plate  S6, 
accompanying  Chapter  XVII,  will  show  that  the  line  connecting  points  equally  distant  from  New 
York  City  by  way  of  the  Suez  Canal,  and  the  route  by  the  American  isthmus,  runs  somewhat  to 
the  west  of  the  Philippine  Islands,  indicating  that  they  are  slightly  nearer  New  York  by  way  of 
the  Panama  Canal  than  the  Suez  route.  The  difference  in  distance  by  the  easterly  and  westerly' 
canal  lines  will,  however,  be  slight,  and  the  Philippine  Islands,  as  well  as  Mala}'sia  generally,  will 
constitute  a  section  whose  commerce  with  North  Atlantic  countries  will  be  divided  between  the 
American  and  Suez  canals. 

THE    GEOGRAPHY    AND    INDUSTRIES    OF    THE    PHILIPPINES. 

The  information  concerning  the  geography  of  the  Philippines  is  scanty  and  must  necessarily 
be  ver\'  incomplete  until  the  islands  can  ))e  surveyed.  The  location  of  the  Philippines  is  between 
5°  and^  20"'  north  latitude,  their  latitude  being  that  of  the  Guianas  and  Haiti.  Their  climate  is 
tropical  and  humid,  and,  being  situated  with  a  general  north-and-south  trend  in  the  latitude  of 
the  trade  winds  and  monsoons,  both  the  eastern  and  western  slopes  of  the  islands  have  alternate 
rainy  and  dry  seasons. 

The  area  of  the  islands  is  estimated  to  be  about  115,000  square  miles  and  the  population  to 
be  7,635,4:26.     Over  one-half  of  the  people  live  on  the  island  of  Luzon,   i 

The  resources  of  the  Philippines  are  agricultural,  forest,  and  mineral.  Concerning  the 
agricultural  conditions  of  the  islands,  information  is  fairh'  satisfactoiy.  The  forest  resources ' 
are  known  to  be  varied  and  abundant,  and  it  is  supposed  that  the  mineral  deposits  are  important. 
There  is,  however,  ver}'  little  authentic  information  at  hand  regarding  the  mineral  wealth  of  the 
country.  The  industrial  conditions  of  the  Philippines  arc  in  an  extremely  backward  and  unde- 
veloped condition,  the  islands  being  at  the  time  of  the  American  occupation  practically  without 
highways.  Only  one  short  railroad  has  yet  been  built,  and  the  industries  are  still  in  an  unoi-- 
ganized  state. 

At  the  present  time  the  agricultural  product  of  most  commercial  importance  is  hemp,  the 
exports  of  which  in  1902  were  valued  at  119,290,610.  The  production  and  exportation  of  this 
article  are  rapidly  increasing  with  the  growth  in  the  demand  for  it  in  the  United  States  and 
other  agricultural  countries.  Some  of  it  is  used  for  cordage,  but  much  more  is  used  as  binder 
twine.  The  principal  competitor  of  Manila  hemp  is  that  from  Yucatan,  sisal  hemp,  the  quality 
of  which  is  much  inferior.  The  plant  from  which  the  fiber  is  taken  is  grown  in  the  shade  of 
half-cleared  woods,  and  its  cultivation  requires  very  little  intelligence  and  only  a  moderate 
amount  of  diligence  and  thrift  on  the  part  of  the  producer. 

Before  the  insurrection  the  most  valuable  export  from  the  Philippines  was  sugar,  of  which 
$10,368,000  worth  was  exported  in  1893.  The  exports  in  1900  amounted  to  about  $3,022,000. 
Sugar  can  l)e  produced  in  large  quantity  in  the  Philippine  Islands,  and  with  the  investment  of 
capital,  in  the  exploitation  of  the  resources  of  the  islands,  will  probably  rise  in  the  list  of  Philippine 
industries. 

Like  the  islands  of  the  West  Indies,  the  Philippines  produce  tobacco  abundantly,  the  soil 
and  climate  of  the  northern  provinces  of  Luzon  being  adapted  to  its  culture.  The  quality  is  said 
to  be  fairly  good.     The  home  consumption  of  tobacco  is  large,  and  considerable  quantities  both 

«  Consult  Plate  83  in  connection  with  this  chapter. 


PANAMA  CANAL  TRAFFIC   AND   TOLLS. 


317 


of  manufactured  and  leaf  tobacco  are  exported.  Most  of  the  unmanufactured  article  is  sent  tu 
Spain.  The  other  important  article  of  export  from  the  Philippines  at  the  present  time  is  copra, 
the  dried  meat  of  the  cocoanut.  The  cocoanut  palm  grows  in  many  parts  of  the  island,  and  might 
be  made  to  contriljute  much  more  largely  to  the  wealth  of  the  islands  than  it  does  at  the  present 
time. 

Next  to  the  cotton  manufactures  the  most  important  article  of  importation  into  the  Philip- 
pine Islands  is  rice.  This  important  article  of  food  might  all  be  grown  in  the  islands,  and  a  sur- 
plus might  be  exported  if  the  industr}'  were  properly  organized.  The  indifferent  agriculture  of 
the  Philippines  was  largely  devoted  to  the  growing  of  rice,  until  the  production  and  exportation 
of  sugar  became  more  profitable.  Whether  it  is  possible  to  apph'  capitalistic  organization  to  the 
production  of  rice  is  not  altogether  certain.  In  all  probability  the  organizers  of  the  industry 
would  be  obliged  to  use  coolies  for  a  part  of  their  labor  force. 

One  of  the  early  natural  resources  of  the  islands  to  he  drawn  upon  will  be  the  forests.  Nearlj^ 
all  of  the  forest  lands  belong  to  the  Government,  and  concessions  for  the  cutting  of  timber  are 
now  being  granted.  The  varietj*  of  hard  woods  is  large;  seventeen  valualjle  dyewoods  are  known 
to  exist,  and  gutta-percha,  camphor,  and  other  gum  trees  may  be  included  among  the  important 
timbers. 

While  but  little  can  be  confidently  a.sserted  regarding  the  mineral  resources  of  the  Philip- 
pines, it  is  supposed  that  there  are  large  deposits  of  gold,  copper,  and  iron.  The  mining  of  gold 
is  now  being  carried  on  to  a  slight  extent.  The  development  of  both  gold  and  copper  resources, 
however,  must  be  delayed  until  machinery  can  be  introduced  and  the  enterprise  organized  in  an 
■efficient  manner.  The  working  of  iron  mines  must  necessarily  bo  deferred  until  there  is  a  good 
supply  of  cheap  fuel.  Lignite  has  been  found  upon  several  of  the  islands,  and  the  qualitj-  is  such 
that  it  can  be  used  for  locomotives  and  on  steamers.  Some  of  these  lignite  deposits  are  near  the 
seashore  and  can  be  readily  worked.  At  the  present  time,  however,  the  entire  coal  supply  is 
imported. 

In  considering  the  industrial  resources  of  the  Philippines  and  their  probable  future  develop- 
ment, one  of  the  most  important  considerations  is  the  labor  supply.  Whether  the  present  inhabit- 
ants of  the  Philippine  Islands  can  be  successfully  organized  in  industrial  undertakings  is  uncertain. 
It  is  probable,  however,  that  education  and  training  in  industry  may  make  of  them  a  valuable 
and  reliable  labor  supply.  It  is  possible  that  more  or  less  use  must  be  made  of  coolie  labor. 
The  near-by  continent  of  Asia  can  furnish  an  unlimited  supph*  of  efficient  labor,  but  whether 
the  Asiatic  labor  supply  should  be  drawn  upon  or  not  I'aises  a  social  as  well  as  an  industrial 
question. 

THE    COMMERCE    OF   THE    PHILIPPINES. 

Having  acquired  political  control  of  the  Philippine  Islands,  their  foreign  trade  becomes  of 
additional  importance  to  the  United  States.  In  order  to  present  the  information  regarding  the 
Philippine  trade  completely  and  definitely,  the  following  tables  have  been  pi'epared.  The  imports 
and  exports  of  the  islands  are  shown  by  countries  and  by  articles  for  the  j-ears  1893  and  1900. 
The  im})orts  and  exports  for  the  year  ending  June  30,  1900,  are  shown  in  a  separate  table.  The 
figures  for  1900  are  taken  from  the  Monthly  Summary  of  Commerce  of  Philippine  Islands, 
United  States  War  Department,  Division  of  Insular  Affairs.  The  figures  for  previous  years  are 
from  Bulletin  No.  1-1,  United  States  Department  of  Agriculture,  Section  of  Foreign  Markets.", 

Table  No.  I. — Imports  of  Philippine  Islands  by  articles,  calendar  year  1S9S  and  fiscal  year  1900. 


Cotton  manufactures 

Rice 

Iron  and  steel  manufactures. 

Malt  liquors  and  cider 

chemicals 

Glass  and  glassware 

Opium 

Coal. 


Paper,  and  manufactures. 

Silk  manufactures 

Flour  

Wines 

Distilled  liquors 


85,866,000 
628,000 
672, 000 
105,000 


376,000 
367,000 
526,000 
1,060,000 
176,000 


Vegetables 

Wood,  and  manufactures . 
Flax,  hemp,  and  jute  man 

Pork,  bacon,  lard 

Mineral  oils 

Boots  and  shoes 

Woolens 

Earthenware  and  china. . . 

Olive  oil 

All  other  articles 


8189, 000 


494,000 
175, 000 

1,084,000 
120, 000 
21,=),  000 
212,000 
114, 000 

3. 338, 000 


Total. 


15,891,000 


8243, 000 
225, 000 
209,000 
195, 000 
161.000 
149, 000 
139.000 
132,000 
47,000 
4, 840. 000 


20, 597, 000 


o  A  revision  of  these  tables  to  date  by  substituting  1903  for  1900  would  be  made  if  the  author  had  the  timeat  his 
-command.  It  is  believed  that  the  value  of  the  tables  and  the  discussion  of  them  warrants  their  retention  in  the 
report. 


318 


PAN.UIA  CANAL  TRAFFIC   AND   TOLLS. 

Table  No.  II. — Imparls  of  Philippine  Islands  by  leadhiy  countries,  1S93  and  1900. 


China,  inclurling  Hongkong  and  Indo-China 

United  Kingdom 

Spain 

United  States 

Germany 

France  

Japan 

All  other  countries 

Total 


82,754,000 

4,247,000 

5, 104, 000 

956,000 

1,246,000 

477,000 

183,000 

923,000 


$8,210,000 
3,941,000 
2,093,000 
1,656,000 
1,210,000 
485,000 
259,000 
2,743,000 


15,890,000    20,597,000 


Table  Xo.  III. — Exports  of  Philippine  Islands  by  leading  articles,  calendar  year  1S93  and  f  seal  year  1900. 


Hemp 

Sugar 

Copra  and  cocoanuts . 
Cigars  and  cigarettes . 
Leaf  tobacco 


Pounds. 
a  92, 262 
576, 557, 000 
26,223,000 


7, 697, 000 

10,368,000 

414,000 

969,000 

1,463,000 


Pounds. 
"75,476 
173,  630, 000 
81,  799, 655 


11,399,000 
3, 022, 000 
1, 693, 000 
1,362,000 
818,000 


T.iELE  No.  IV. — Exports  of  Philippine  Islands  by  leading  countries. 


Average  for 

1892-1896 

(calendar 

years) . 


United  Kingdom 

China,  including  French  Indo-China  and  Hongkong 

United  States 

France  

Spain 

Japan  

Germany 

Other  cotmtries 

Total 


?8, 844, 000 

31,000 

6,053,000 

986,000 

3, 855, 000 

616,000 

201,000 

1,896,000 


$6, 227, 000- 
4, 416, 000 
3,522,000 
1,392,000 
1,226,000 
1,032,000 
97,000 
2,110,000 


22,482,000  I    19,751,000 


Table  No.  V. — Imports  and  e.rports  of  merchandise,  Philippine  Isla7ids,  year  ended  lune  SO,  1900. 


Exports. 


United  States 

United  Kingdom  . . 

Spain 

France 

Germany 

Japan 

China 

Hongkong 

British  East  Indies 
Other  countries 

Total 


$1,656,469 
3,941,422 
2,092,530 

4a5,  299 
1, 209, 953 

2,59, 461 
5, 570, 683 
2, 639, 620 


83,  .522, 160 
6, 227, 259 
1,226,475 
1,392,439 
1,397,,54S 
1,032,402 
1,4.58,729 
2,686,168 
938, 470 
1,169,558 


19,751,1 


One-half  of  the  imports  into  the  Philippine  Islands,  as  is  shown  by  Tabic  No.  I,  con.sists  of 
cotton  manufactures  and  rice.  Among  other  important  articles  are  iron  and  steel  manufactures, 
liquors,  and  chemicals.  By  comparing  the  trade  of  the  year  1893  with  that  of  1900  several  impor- 
tant changes  will  be  .seen  to  have  taken  place  in  the  Philippine  trade.  During  both  years  cotton 
manufactures  held  first  place,  liut  the  importation  of  rice  is  shown  to  have  increased  nearly  five- 
fold. The  importation  of  mineral  oils  has  fallen  oif  very  greatly,  and  the  same  is  true  of  wines. 
The  decreased  purchases  of  wines,  however,  are  largely  offset  by  the  increased  importation  of 
distilled  and  malt  liquors.  On  the  whole,  the  trade  shows  a  rather  large  growth  in  view  of  the 
insurrection.     There  is  a  general  tendency  toward  a  larger  purchase  of  manufactured  commodities. 

An  examination  of  Table  No.  11  shows  that  important  changes  are  taking  place  in  the 
distribution  of  the  Philippine  purchases  among  foreign  countries.     As  might  be  expected,  the 


P-IN-LAIA  CANAL  TRAFFIC   AND  TOLLS.  319 

transfer  of  the  islands  from  Spain  to  the  Cnited  States,  and  the  abolition  of  the  preferential  tariffs 
maintained  by  Spain,  have  resulted  in  a  great  decrease  in  her  trade  with  the  Philippines.  Our 
exports  to  those  islands  are  shown  to  be  increasing."  The  exports  from  the  United  Kingdom  to 
the  Philippines  appear  to  be  declining,  while  those  from  China  and  Hongkong  appear  to  be 
increasing.  The  trade  of  Hongkong,  however,  is  only  that  of  a  distributing  center,  and  the 
increase  in  its  exports  to  the  Piiilippines  means  only  that  the  United  Kingdom,  the  United  States, 
and  other  countries  are  sending  greater  quantities  of  commodities  to  Hongkong  for  distribution 
in  the  Philippines  and  elsewhere. 

Li  the  exports  of  the  Philippine  Islands  the  hemp  now  has  tirst  place,  although  in  1S93  the 
value  of  the  sugar  exports  was  50  per  cent  more  than  that  of  hemp.  The  war  with  Spain  find 
the  subsequent  insurrection  have  greatly  interfered  with  the  sugar  production.  The  exportation 
of  hemp,  cocoanut  products,  and  tobacco  seems  to  have  been  less  interfei'cd  with.'  The  consump- 
tion of  hemp  is  increasing  so  fast  that  the  exportation  of  this  commodity  from  the  Philippines 
must  unquestionabh'  increase  rapidly  in  the  future.  It  is  probable  also  that  improved  machin- 
ery will  be  introduced  for  the  manufacture  of  sugar  and  that  some  of  the  plantations,  at  least, 
will  be  organized  in  accordance  with  efficient  modern  methods.  At  the  present  time  the  sugar 
exports  consist  of  a  very  crude,  unrefined  product,  most  of  which  is  sold  in  Asiatic  countries. 
Table  ^'o.  IV,  giving  the  destination  of  the  foreign  exports,  shows  that  Great  Britain  and  the 
continent  of  Asia  received  over  half  of  the  total  in  1900.  Here  again  the  trade  of  Great  Britain 
and  the  United  States  seems  to  have  fallen  off,  and  that  of  Hongkong  and  China  to  have  greatly 
increased.  This  is  obviously  due  to  the  fact  that  Hongkong  is  credited  with  trade  that  is  merely 
transshipped  at  that  port.  The  exports  from  Spain  to  the  Philippines  have  fallen  off',  as  might 
have  been  expected.  The  inffuence  of  the  Philippine  insurrection  upon  the  total  exports  of  the 
islands  and  upon  their  export  trade  to  the  United  States  in  1900  is  clearlv  indicated  by  Table 
No.  IV. 

The  imports  into  the  Philippine  Islands  from  the  United  States  in  19(  lO  constituted  but  a  small 
portion  of  the  purchases  by  the  people  of  those  islands.  The  total  value  of  our  exports  to  those 
islands  were,  however,  increasing,  the  goods  exported  directly  from  the  United  States  amounting 
to  ^1,655.469  during  the  year  ended  June  30,  1900.  During  the  live  years  1892-1896,  when  our 
trade  relations  were  normal,  our  exports  to  the  islands  averaged  only  ^135,228  per  annum. 

What  are  the  chances  for  our  developing  a  large  export  trade  to  the  Philippine  Islands  i  Is 
it  probable  that  the  Filipinos  will  largely  increase  their  total  imports,  and  if  they  do,  will  a 
larger  share  of  the  total  be  supplied  by  the  United  States^  What  has  happened  since  1900  is 
certainly  encouraging.  What  the  future  growth  of  our  Philippine  trade  shall  be  will  depend 
more  upon  the  facilities  for  shipment  than  the  cost  of  production  in  this  country  as  compared 
with  cost  of  production  in  Europe.  At  the  present  time  Great  Britain  and  German}'  control  the 
larger  share  of  the  Philippine  trade,  but  it  would  seem  that  in  the  future  the  heavier  iron  and 
steel  manufactures,  as  well  as  the  electrical  maclrinery,  tools,  bicA'cles,  sewing  machines,  and 
similar  articles,  will  be  purchased  in  considerable  and  in  increasing  quantities  from  this  country. 
Our  ability  to  sell  cotton  goods  extensively  in  Manchuria  would  indicate  that  we  can  compete 
with  Europe  in  supplying  tJie  Filipinos  with  those  goods.  The  growing  demand  for  flour,  pro- 
visions, and  dairy  products  will  be  supplied  by  the  United  States  if  shipping  facilities  are  favora- 
ble. At  the  present  time  the  petroleum  used  by  the  Filipinos  is  supplied  mainly  by  Russia,  but 
the  opening  of  the  canal  and  the  establishment  of  better  shipping  facilities,  between  the  eastern 
part  of  the  United  States  and  the  Orient,  will  enable  the  American  exporters  of  oil  to  control  at 
east  a  part  of  this  trade. 

The  opening  of  the  canal  will  not  greatly  reduce  the  distances  from  our  Atlantic  seaboard  to 
the  Philippine  Islands,  but  it  will  give  us  another  route  to  the  East,  and  one  that  will  probablj'- 
be  more  economical.  One  of  the  consequences  of  the  canal  will  be  a  larger  commercial  inter- 
course between  the  United  States  and  oriental  countries  generally,  and  this  will  be  accompanied 
by  better  facilities  for  trading  with  all  oriental  countries,  the  Philippines  included.  At  the 
present  time  the  European  exporters  have  more  favorable  facilities  for  shipping  to  the  Philippines 
and  other  points  in  the  East  than  Americans  have. 

LOCATION    OF   THE    PHILIPPINES    WITH    liEFERENPE    TO    TRADE    ROUTES    FROM    THE    UNITED    STATES. 

Present  conditions  make  Hongkong  the  point  from  which  the  imports  into  the  Philippine 
Islands  are  distributed,  and  is  the  point  from  which  a  large  part  of  the  exports  is  despatched  to 
North  Atlantic  countries.  At  the  present  time  the  trade  of  the  Philippines  is  not  large  enough  to 
cause  many  vessels  outbound  from  Eui'ope  for  Hongkong,  Shanghai,  and  Japanese  ports  to  make 

aOur  exports  to  the  Philippines  in  1901  amounted  to  §4,014,180,  in  1902  to  85,251,867,  and  in  1903  to  $4,028,677. 
Durinc;  tliese  years  our  imports  were  for  1901,  $4,420,9i2;  1902,  86,612,700,  and  1903,  811,372,584. 

b  In  1902  the  total  exports  of  the  Philippines  amounted  to  828,671,904,  of  which  hemp  comprised  119,290,610,  or 
67  per  cent.     Sugar  constituted  12  per  cent,  cigars  .7  per  cent,  copra  9  per  cent,  and  miscellaneous  articles  5  per  cent. 


320  PANAMA  CAKIL  TRAFFIC   AND   TOLLS. 

the  detour  required  in  order  to  call  at  Manila.  Moreover,  the  wharves  will  not  now  accommodate 
lar^e  ships,  and  nearly  all  the  traffic  has  to  be  handled  by  lighters.  The  improvements  in  progress 
in  the  harbor  will  remove  this  obstacle,  and  it  is  probable  that  as  the  total  trade  of  Manila  increases, 
the  inducements  for  making  the  city  a  port  of  call  will  become  .sutHciciit  to  cause  a  large  share  of 
the  Manila  trade  to  be  handled  at  that  port,  instead  of  being  traiisshijjped  at  Hongkong. 

The  location  of  Manila  and  the  Philippines  with  reference  to  trade  routes  from  New  York  by 
■way  of  the  Panama  Canal  is  shown  by  the  following  table.  In  Chapter  XVH  the  length  of 
routes  from  Europe  and  the  United  States  to  the  Philippines  is  discussed  more  in  detail. 

Miles. 

1.  New  York  to  Manila  via  Panama,  San  Francisco,  Great  Circle,  and  Yokohama 11, 585 

2.  New  York  to  Manila  via  Panama,  Honolulu,  and  Guam 11,  729 

3.  New  York  to  Manila  via  Panama,  San  Francisco,  Yokohama,  Shanghai,  and  Hongkong 12, 372 

4.  New  York  to  Manila  via  Panama,  Honolulu,  Yokohama,  Shanghai,  and  Hongkong 12,  823 

5.  New  York  to  Hongkong  via  Panama,  Honolulu,  Guam,  and  Manila 12,  357 

6.  New  York  to  Hongkong  via  Panama,  San  Francisco,  Yokohama,  and  Shanghai 11,  744 

7.  New  York  to  Shanghai  via  Panama,  San  Francisco,  and  Yokohama 10,  883 

8.  New  York  to  Shanghai  via  Panama,  Honolulu,  Guam,  and  Manila 12, 964 

The  distance  from  New  York  to  Hongkong  and  Shanghai  (compare  routes  5,  6,  7,  and  8)  are 
respectively  613  and  2,081  miles  shorter  by  way  of  the  northerly  route  and  .lapan  than  b}^  the 
southerly  route  and  the  Philippines.  The  distance  from  New  York  to  Manila  is  shorter  by  way 
of  San  Francisco  and  Japan  (routes  1  and  2)  than  by  Honolulu  and  Guam.  In  Honolulu, 
moreover,  the  price  of  coal  is  higher  than  in  San  Francisco.  Coal  is  also  dearer  in  Guam  than 
in  Yokohama.  San  Francisco  and  Yokohama  also  have  more  freight  to  offer  than  Honolulu 
and  Guam  have  The  price  of  coal  will  always  be  high  at  Guam,  because  the  island  will  not 
be  an  exporting  point.  Vessels  engaged  in  the  commerce  between  America,  Asia,  and  the  Phil- 
ippines will  tend  to  take  the  northern  route  to  get  Japanese  coal  and  freight. 

ir.    THE    HAWAIIAN    ISLANDS. 

SOIL   AND   CLIMATE   OF   THE   HAWAIIAN   ISLANDS. 

The  Hawaiian  Islands  have  a  fertile  soil  in  the  limited  areas  where  cultivation  is  possible. 
The  islands  being  situated  in  midocean  between  19°  and  23°  north  latitude,  the  northeast  trade 
winds  blow  over  them  during  the  greater  part  of  the  year,  and  the  eastern  side  of  the  islands  is 
copiously  watered,  but  on  the  opposite  slopes  the  rainfall  is  much  less  and  irrigation  is  necessary 
to  agriculture.  The  leeward  side  of  the  islands,  moreover,  is  calmer  and  warmer  than  the  wind- 
ward side.  The  islands  are  volcanic,  hilly,  and  well  drained,  and  hence  not  malarial.  In  most 
parts  of  the  islands  the  climate  is  not  especially  enervating,  and  Europeans,  as  well  as  Japanese 
and  Chinese,  find  sustained  effort  to  be  possible.  The  islands  are  of  small  area  and  very  moun- 
tainous, and  the  foreign  immigrant  has  a  large  range  of  choice  as  regards  climate. 

The  Hawaiian  group  consists  principally  of  seven  islands,  having  a  total  area  of  6,-i-±9  square 
uiles.  The  largest  island  of  the  group  is  Hawaii,  although  Oahu,  upon  which  the  citj^  of  Hono- 
lulu is  located,  is  the  most  populous  one.  Although  the  Hawaiian  Islands  have  nearly  twice  the 
area  of  Porto  Rico,  their  population  is  only  one-sixth  as  great.  According  to  the  census  taken 
by  the  United  States  Government  in  1900  the  inhabitants  of  the  islands  number  15-1,000,  the 
increase  from  1896  having  been  44,981,  which  was  over  41  per  cent.  This  very  rapid  growth  in 
population  was  due  to  the  sudden  expansion  of  business  resulting  from  the  annexation  of  the 
islands  to  the  United  States. 

By  the  census  of  1890  the  population  numbered  109,020,  and  of  this  total  31,019  were 
natives,  8,485  half-castes,  21,616  Chinese,  24,407  Japanese,  15,191  Portuguese,  3.086  Americans, 
2,2.50  British,  the  rest  of  the  population  being  made  up  of  Germans,  Norwegians,  French,  and 
Polyucsians.  The  iunnigrants  into  the  islands  from  the  United  States  comprise  a  comparatively 
.small  share  of  the  total  population.  They  have,  however,  the  industrial  and  political  control  of 
the  islands.  The  laboring  classes  consist  largely  of  Japanese  and  Chinese.  In  1900  there  were 
25,742  Chinese  in  the  islands,  and  about  6,000  of  them  were  employed  on  the  sugar  plantations. 
The  Japanese  numbered  58,000,  and  about  26,100  of  them  were  employed  on  the  sugar  plantty 
tions.  Nearly  five-sevenths  of  the  plantation  laborers  consist  of  Japanese.  By  1900  the  native 
Hawaiians  had  decreased  to  29,834  and  the  half-castes  to  7,835.  The  white  population  is  increas- 
ing, its  total  number  in  1900  being  28,553,  but  the  most  rapid  gains  have  been  made  by  the 
Japanese,  who  numbered  58,500  in  1900. 

THE    RESOURCES    OF   THE    HAWAIIAN    ISLANDS. 

The  resources  of  Hawaii  are  almost  exclusivelj*  agricultural.  There  are  no  minerals  of  con- 
sequence and  manufactures  are  and  will  always  be  insignificant. 

The  sugar  industry  is  of  overshadowing  importance.  The  decomposed  lava  soils  of  the 
islands,  when  properly  irrigated  and  treated  with  a  small  quantity  of  fertilizers,  are  exceedingly 


PANAJVIA  CANAL  TRAFFIC   AND   TOLLS.  321 

productive,  the  yield  of  sugar  per  acre  being  especially  high,  ranging  from  3  to  5  tons  per  acre 
on  the  average.  The  total  crop  of  1891  amounted  to  137,000  tons,  while  that  of  1901  was  about 
345,000  tons,  and  additions  have  been  made  to  the  acreage  of  the  plantations  since  that  date.  The 
plantations  are  organized  on  a  large  scale  and  in  accordance  with  most  economical  methods.  The 
rainfall  on  the  leeward  side  of  the  island  being  light,  irrigation  is  necessary,  and  extensive  irri- 
gation works  have  been  consti'ucted. 

While  the  large  development  of  the  .sugar  industry  in  Hawaii  has  added  to  the  wealth  of  the 
islands,  it  has  not  been  altogether  fortunate  for  their  economic  progress.  The  climate  and  soil  of 
the  islands  are  such  that  the  industries  might  be  diversitied,  and  it  is  probable  that  a  population 
consisting  to  a  large  extent  of  small,  independent  famners  might  be  developed  if  the  sugar  planta- 
tions did  not  include  such  a  large  share  of  the  islands.  In  the  early  eighties  the  best  sugar  lands 
were  leased  for  thirty  and  forty  year  periods  to  a  small  number  of  planters,  and  the  American 
capital  invested  in  Hawaii  has  gone  almost  entii'ely  into  the  sugar  industry.  The  population 
connected  with  the  sugar  plantations  consists  of  .Japanese,  Chinese,  and  Portuguese  laborers,  who 
probably  will  always  constitute  a  dependent  population. 

Rice  is  the  second  crop  in  value,  and  in  former  years  it  has  been  an  important  article  of 
export.  The  rapid  growth  in  the  population,  particularly  in  the  number  of  Japanese,  has  so 
increased  the  home  demand  as  nearly  to  put  an  end  to  the  exportation  of  rice.  The  industry  is 
carried  on  b}'  the  Chinese  according  to  very  primitive  methods. 

Large  quantities  of  tropical  fruits,  oranges,  pineapples,  bananas,  etc.,  could  be  successfully 
grown  in  Hawaii.     The  exportation  of  bananas  to  California  began  in  1899. 

At  one  time  it  seemed  probable  that  the  production  of  coffee  would  constitute  the  most  import- 
ant industy  of  the  Hawaiian  Islands,  but  the  reciprocit_v  treaty  between  Hawaii  and  the  United 
tStatcs  made  the  cultivation  of  sugar  so  profitable  that  capital  went  more  and  more  into  sugar 
plantations.  Some  of  the  coffee  estates  have  been  converted  into  sugar  plantations,  and  at  the 
present  time  it  is  estimated  that  there  ai-e  less  than  20,000  acres  of  coffee  under  cultivation.  The 
annual  production  is  larger  than  the  home  demand  and  a  limited  quantity  is  exported.  The 
exports  in  1897  amounted  to  337  pounds,  and  those  of  1S99  were  779,796  pounds."  It  seems 
prol)able  that  the  annual  production  will  grow  less  rather  than  inci'ease,  unless  the  coffee  and 
sugar  industries  should  be  developed  together  on  the  same  plantations.  Those  who  have  studied 
the  question  have  suggested  that  the  two  crops  might  advantageously  be  produced  on  the  same 
plantation,  because  coffee  grows  at  a  greater  elevation  than  the  sugar  does,  and  the  season  when 
coffee  requires  the  largest  labor  force  conies  at  a  time  when  the  sugar  plantation  has  a  surplus  of 
workmen.  Anything  that  can  bring  about  the  diversification  of  industries  in  Hawaii  will  be  of 
advantage  to  the  islands. 

Whether  the  industries  of  Hawaii  can  be  diversified  and  the  social  conditions  accompanying 
large  plantation  life  can  be  changed  is  a  matter  of  great  importance  to  the  economic  future  of 
Hawaii.  There  seems  to  be  a  tendency  in  all  tropical  countries  toward  the  organization  of 
industries  upon  a  large  scale.  The  corporation  with  abundant  capital  at  its  command  seems  in  a 
measure  to  be  taking  the  place  formerly  occupied  by  the  slave  ow'ner.  In  the  time  of  slavery  the 
planters  organized  and  directed  the  labor  force  of  the  natives,  and  under  the  present  capitalistic 
regime  the  corporations,  in  a  different  manner,  are  performing  a  similar  task.  Whether  or  not 
the  capitalistic  organization  of  labor  will  result  in  a  social  betterment  of  the  laboring  classes  and 
in  the  development  of  intelligent,  self -supporting  artisans  remains  to  be  seen.  If  it  is  possible  to 
develop  desirable  social  conditions  an3'where  in  the  Tropics,  Hawaii  would  seem  to  offer  more 
opportunities  than  most  of  the  island  countries.  The  United  States  Government  has  established 
an  agricultural  experiment  station  in  Hawaii  that  will  doubtless  be  of  assistance  in  varying  the 
productions  of  the  islands.     General  education  will  in  time  assist  in  the  same  work. 

THE  CANAL  AND  THE  TRADE  OF  HAWAII. 

The  Hawaiian  Islands  have  a  large  and  rapidly  increasing  foreign  trade.  The  annexation  of 
the  islands  to  the  United  States  was  followed  by  a  great  expansion  in  business.  The  imports  of 
1897  were  valued  at  $8,838,000,  those  of  1899  amounted  to  $19,058,000,  which,  however,  was 
much  larger  than  our  present  export  trade  to  the  islands.  The  exports  of  the  islands  increased 
from  ^16,(129,000  in  1897  to  $22,628,000  in  1899,  and  to  126,228,204  in  1903  and  all  but  $27,029 
worth  were  sent  to  the  United  States. 

The  share  of  the  Hawaiian  trade  controlled  bj^  the  United  States  is  especially  large.  In  1898, 
99.62  per  cent  of  the  exports  of  the  islands  came  to  the  United  States,  and  we  furnished  them 
76.94  per  cent  of  their  imports.  In  1899  the  United  States  purchased  99.52  per  cent  of  the 
Hawaiian  exports,  and  supplied  the  islands  78.81  per  cent  of  their  imports.     The  percentages  for 

«  Later  figures  are  not  available  because  our  commerce  with  Hawaii  is  now  coasting  trade,  concerning  whick 
etatistics  are  not  kept. 


322  PANAilA   CANAL   TRAFFIC   AND   TOLLS. 

1903  are  nearly  the. same.  Our  most  important  rival  in  the  import  trade  of  Hawaii  is  Japan, 
which  supplies  the  islands  with  about  7  per  cent  of  their  puivhases. 

Practically  all  of  the  iron  and  steel  products  imported  by  Hawaii  come  from  the  Eastern 
States.  The  owner  of  one  of  the  largest  Hawaiian  sugar  plantations  states  that  its  water  supply 
is  handled  through  pumps  and  pipes  purchased  in  Birmingham,  Ala.,  and  that  its  sugar  machinery' 
was  manufactured  in  St.  Louis.  A  single  firm  near  New  York  already  sends  §oOO,00(J  worth  of 
machinery  annually  to  Hawaii.  Of  the  fertilizers,  a  part  comes  German}',  but  the  larger  share 
is  from  the  phosphate  beds  of  our  Southern  States,  and  the  canal  will  aid  Hawaiian  agriculture 
by  cheapening  the  cost  of  these  commodities  as  well  as  by  furnishing  a  shorter  route  by  which  to 
market  the  exported  produce.  Our  Atlantic  States  have  been  importing  40,000  to  80,000  tons  of 
Hawaiian  sugar  per  year,  bj-  wav  of  Magellan  and  Cape  Horn.  This  will  be^  cheapened  bj^  the 
shorter  route,  and  as  the  price  of  sugar  on  the  Pacific  coast  is  determined  by  its  price  in  New 
York  and  Hamburg,  the  canal  will  enable  the  sugar  grower  to  obtain  a  higher  price  for  the  bulk 
of  the  crop  marketed  in  our  Pacific  States. 

In  their  trade  relations  the  Hawaiian  Islands  may  be  considered  as  a  part  of  our  Pacific  coast, 
They  belong  to  the  United  States,  the  dominant  race  is  American,  English  is  the  common  language, 
our  capital  controls  the  industry  of  the  islands,  and  their  commerce  is  almost  all  with  this  countr\\ 
An  isthmian  canal  must  have  a  gi-eat  eft'ect  on  Hawaii.  The  one-sidedness  of  her  resources  makes 
Hawaii  especially  dependent  upon  commerce.  Sugar  is  the  only  product  extensively  exported; 
agriculture  the  only  industry-,  and  that  is  in  an  undiversified  state.  All  manufactures  and  many 
.of  the  food  products  needed  by  her  increasing  population  must  be  imported.  The  complex 
demands  of  the  islands  can  be  supplied  only  in  part  by  the  industries  of  our  Pacific  coast  States, 
and  everything  not  originating  there  must  be  bi'onght  fi'om  our  Eastern  States  or  Europe.  Some 
of  the  Hawaiian  imports  from  the  eastern  part  of  the  United  States  now  move  by  the  transconti- 
nental railroads  and  thence  by  water,  but  the  heavier  articles  usually  go  by  Cape  Horn  or  the  Straits 
of  Magellan.  Some  goods  are  sent  by  the  Panama  lines  and  transshipped  at  San  Francisco.  After 
the  canal  has  been  constructed,  the  traffic,  both  impoi't  and  export,  will  be  divided  between  the 
transcontinental  railroads  and  the  all-water  canal  route. 


Chapter  XVI. 

THE  CANAL  AND  CENTRAL,  AMERICA  AND  WESTERN  MEXICO. 

I.    CENTRAL   AMERICA. 


POPULATION   AND   GENERAL  GEOGRAPHY. 


The  population  of  Central  American  countries  has  not  been  accurately  determined  by  careful 
censu.ses,  but  the  following  table,  compiled  from  the  Statesman's  Yearbook,  doubtless  gives 
approximately  accurate  figures  regarding  both  the  area  and  population  of  each  of  the  Central 
American  countries: 

Area  and  pnimlation  of  Central  American  countries. 


Country. 

Area. 

Population. 

Capital  city. 

Population 

of  Capital 

city. 

So.  miies. 
23,000 
63,400 
46,250 
49,200 
7,225 

300,000 

1,532,000 

407,000 

420,000 

"915,000 

"5  000 

Tegucigalpa 

20  000 

189,075 

3,574,000 

a  Bulletin  Bureau  of  American  Republics,  March,  1901. 

The  population  of  the  Central  American  countries  "  is  nearh^  all  upon  the  plateaus  adjacent 
to  the  Facitic.  The  climate  of  the  Caribbean  coastal  regions  of  Central  America  is  humid,  and 
the  tropical  vegetation  grows  so  rank  as  to  add  much  to  the  difficulty  of  occupying  and  cultivating 
the  country. 

The  plateau  on  which  the  Central  American  population  and  industries  are  centered  extends 
with  varying  width  and  elevation  from  Mexico  to  southern  Costa  Rica.  West  of  the  continental 
divide  and  parallel  to  it  is  a  succession  of  volcanoes  extending  through  all  the  region  to  the  north 
of  Costa  Rica.  In  Guatemala  they  raise  a  liarrier  that  walls  in  a  series  of  upland  lakes,  in  Sal- 
vador they  inclose  a  high  valley  where  most  of  the  people  of  the  country  reside,  and  in  Honduras 
and  Nicaragua  they  are  near  the  Pacific  between  the  lakes  and  the  ocean.  This  double  mountain 
range  widens  the  plateau  and  increases  the  habitable  area.  The  plateau  from  Costa  Rica  north- 
ward is  made  up  in  large  part  of  decomposed  lava,  which  has  formed  a  fertile  soil.  Like  the 
lava  soils  of  Hawaii,  those  of  Central  America  ai'e  well  adapted  to  sugar,  cofiee,  and  other  crops 
of  tropic  agriculture. 

The  Central  American  plateau  is  mo.st  closely  connected  commercially  with  the  Pacific  Ocean. 
The  Caribbean  outlets  are  the  Costa  Rica  Railroad,  from  San  Jose  to  Port  Limon.  and  the  San 
Juan  River.  To  the  Pacific,  however,  four  railroads  have  been  constructed,  not  including  the 
short  line  terminating  at  Punta  Arenas,  Costa  Rica.  Two  of  these  four  railroads  are  in  Guate- 
mala, one  in  Salvador,  and  one  in  Nicaragua.  Numerous  wagon  roads  have  been  constructed, 
and  an  English  companj'  is  constructing  a  railroad  in  Costa  Rica  between  San  Jose  and  Tivives. 

THE    CENTRAL    AMERICAN    INDUSTRIES. 

The  industries"  of  Central  America  are  mainly  agricultural.  Forest  products  are  .exported 
to  some  extent.  The  mineral  resources  of  the  country  are  beginning  to  be  developed,  but  as  yet 
on  a  comparative!}^  small  scale. 

Throughout  Central  America  coffee  is  the  staple  product,  the  leading  State  in  its  production 
being  Guatemala.  In  that  State  the  cofl'ee  belt  is  in  the  plateau,  the  western  edge  of  the  belt 
being  some  10  or  1,5  miles  from  the  Pacific  Ocean.  It  is  50  to  80  miles  wide.  This  is  the  part  of 
the  country  where  most  of  the  populatiou  is  to  be  found.     The  cotlee  in  this  region  is  carefully 

a  See  Plate  84. 


32-i  PANAiLi  CAN.YL   TRAFFIC   AND   TOLLS. 

cultivated  and  extensively  exported,  two  railroads  to  the  Pacific  having  already  been  built,  and  a 
third  line  near  the  Mexican  boundary  will  probably  be  constructed  in  the  near  future.  The 
western  plateau  of  Salvador,  Honduras,  Nicaragua,  and  Costa  Rica  has  numerous  valleys  where 
coffee  culture  is  extensively  carried  on.  The  main  coffee  belt  of  Nicaragua  is  situated  in  the 
neighborhood  of  Jinotepe,  northwest  of  Lake  Nicaragua.  In  Costa  Rica  the  valley  in  which  the 
city  of  San  Jose  is  located  constitutes  the  most  important  coffee-growing  region. 

The  lowlands  of  the  eastern  coast,  paiticularl3'  of  Nicaragua  and  Costa  Rica,  are  well 
adapted  to  banana  culture,  and  the  United  Fruit  Company  has  extensive  banana  plantations  in 
the  neighborhood  of  Port  Limon.  Costa  Rica,  and  Bluetields,  Nicaragua.  The  Sau  Juan  River 
Valley  is  another  region  in  which  banana  culture  could  be  extensively  carried  on. 

In  the  western  part  of  Central  America,  where  the  soil  is  largely  of  volcanic  origin,  sugar 
can  be  very  successfully  grown.  Several  sugar  plantations  are  now  in  successful  operation,  but 
their  output  is  practically  all  consumed  within  the  country.  In  the  future  development  of 
Central  America  the  production  of  sugar  will  in  all  probability  have  a  prominent  place. 

There  is  at  the  present  time  a  limited  amount  of  cocoa  produced  in  various  sections,  and  this 
is  a  product  which  could  readily  be  increased.  It  is  also  probable  that  rubber  trees  can  be  and 
will  be  profitably  cultivated  in  the  future.  At  the  present  time  the  world's  rubber  supply 
is  mainly  secured  from  the  natural  forest  trees,  but  the  growing  demand  for  rubber  and  the 
increasing  difficulty  of  securing  adequate  supplies  from  the  pi-esent  uncertain  sources  make  it 
probable  tiiat  rubber  will  in  the  future  be  a  cultivated  product.  When  that  time  comes  the 
lowlands  will  offer  a  favorable  region. 

Throughout  the  uplands  of  Central'  America  cattle  are  raised  in  lai'ge  numbers,  and  one  of 
the  important  exports  at  the  present  time  is  hides.  Indeed,  coffee,  bananas,  and  hides  are  the 
leading  articles  of  export.  At  the  present  time,  with  the  exception  of  bananas  and  timber,  the 
leading  exported  commodities  leave  the  countrj'  mainh'  by  the  Pacific  ports. 

The  lumbering  industries  are  mainly  located  on  the  eastern  shore,  and  the  same  is  true  of 
dyewoods  and  other  forest  products. 

The  mining  of  gold,  silver,  and  copper  has  made  some  headway  in  Central  America,  and 
with  the  establishment  of  stronger  governments  and  the  development  of  additional  facilities  for 
transportation  these  mineral  industries  will  doubtless  develop.  When  it  is  possible  to  reach  the 
mines  in  the  western  part  of  Costa  Rica,  Nicaragua,  Salvador,  and  Guatemala  by  improved  means 
of  transportation,  and  when  it  is  possible  to  secure  sujjplies  and  dispose  of  the  product  with 
moderate  transportation  costs,  there  is  reason  to  believe  that  the  Central  American  countries 
will  regain  some  of  the  prominence  which  they  once  held  as  a  source  of  precious  metals.  Pos- 
sibly the  most  valuable  mineral  resource  of  the  region  will  prove  to  be  copper,  the  world's 
demand  for  which  seems  to  increase  more  rapidly  than  does  the  supply  of  the  metal. 

As  to  the  productive  capabilities  of  Central  America,  there  is  no  doubt  that  when  foreign 
capital  can  lie  invested  f reelj'  and  safely  in  industrial  enterprises  the  progress  of  that  region  will 
be  steady  and  eventually  reach  large  proportions.  The  construction  of  the  canal  will  increase 
the  shipping  facilities  of  the  eastern  part  of  the  country-  and  will  bring  the  western  half  of  the 
region  into  close  commercial  relations  with  its  chief  markets,  the  countries  of  the  North  Atlantic. 

THE    CANAL    AND    THE    FOREIGN    TRADE    OF    CENTRAL    AMERICA. 

The  opening  of  a  canal  across  the  American  Isthmus,  either  at  Panama  or  at  Nicaragua, 
would  enlarge  the  foreign  commerce  of  Central  America  and  increase  the  share  of  the  trade  con- 
trolled bj'  tne  United  States.  A  waterway  across  Nicaragua"  would,  however,  have  a  greater 
effect  upon  the  industries  and  commerce  of  Central  America  than  would  one  at  Panama,  because 
of  the  gi-eat  assistance  the  Nicaragua  Canal  would  give  to  economic  and  political  progress  in  the 
States  adjacent.  Nicaragua  and  Costa  Rica  would  contribute  tropical  products  to  the  traffic  of  a 
canal  passing  through  their  territory  and  to  the  commerce  of  Europe  and  the  United  States. 
Fruits  and  forest  products  would  be  shipped  from  the  San  Juan  Valley  and  the  northern  part  of 
Costa  Rica.  In  the  uplands  of  Costa  Rica  and  on  the  plateau  of  Nicaragua  the  exportation  of 
cattle,  coffee,  fruits  and  vegetables,  sugar,  and  probablj'  tobacco  would  be  stimulated  by  the 
canal  and  the  facilities  for  shipping  at  all  times  to  all  important  commercial  countries.  Nica- 
ragua would  be  especially  favored  by  the  canal  because  of  the  facilities  which  Lake  Nicaragua 
would  afford  for  collecting  and  distributing  commodities.  The  interoceanic  waterway  would 
bring  the  interior  basin  of  the  country,  where  most  of  the  industrial  activity  is  centered,  into 
close  connection  with  the  world's  commerce. 

«  It  has  seemed  best  not  to  revise  this  paragraph,  because  it  indicates  the  ways  in  which  a  canal  by  the  Nicaragua 
route  would  have  benefited  Nicaragua  and  Costa  Rica.  Tlie  Panama  Canal  will,  however,  assist  in  tlie  economic 
development  of  those  countries,  especially  when  they  have  built  the  railways  required  for  inland  transportation. 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  325 

The  commerce  of  the  eastern  ports  of  Central  America  is  laro-ely  controlled  by  the  United 
States,  while  most  of  that  of  the  western  slope  is  with  Europe.  We  supply  55  to  60  per  cent  of 
the  imports  of  British  Honduras  or  Belize  on  the  Atlantic  coast.  To  Guatemala  as  a  whole  we 
furnish  only  39  per  cent,  including-  our  direct  shipments  to  the  east  coast,  and  the  flour,  lumber, 
ajid  provisions  from  San  Francisco  to  the  west  coast.  Great  Britain  supplies  most  of  the  $558,000 
worth  of  cottons  purchased  by  Guatemala,  and  nearly  all  of  the  manufactures  imported  by  that 
country  come  from  Europe  by  the  Straits  of  Magellan.  The  same  conditions  prevail  in  western 
Honduras,  although  we  have  inost  of  the  trade  of  the  eastern  ports,  where  there  are  good  steamer 
connections  with  Kew  Orleans.  Salvador  has  a  foreign  trade  of  $20  per  capita,  divided  between 
San  Francisco  and  Europe.  In  1805  the  United  States  supplied  Nicaragua  with  but  23  per  cent 
of  the  imports  of  the  Pacific  side,  and  the  goods  sold  by  us  consisted  largely  of  California  lum- 
ber, wines,  and  Hour.  In  1897  we  furnished  the  following  percentage  of  the  imports  of  eastern 
ports  of  Nicaragua:  Cape  Gracias  a  Dios,  85  per  cent;  Bluefields,  83.6  per  cent;  Greytown,  53 
per  cent.  Fifty-eight  per  cent  of  the  goods  forwarded  from  Greytown  to  the  interior  were  from 
the  United  States.  We  are  now  furnishing  45  to  50  per  cent  of  the  imports  of  Costa  Rica,  and 
the  share  has  increased  considerably  since  the  railroad  to  Port  Limon  changed  the  commercial 
outlet  from  Punta  Arenas  on  the  Pacific  to  Port  Limon  on  the  Atlantic. 

The  total  imports  of  Central  America  and  the  shares  of  the  United  States,  the  United  King- 
dom, and  Germany  are  shown  by  the  following  table  taken  from  the  publications  of  the  United 
States  Bureau  of  Statistics: 

Imports  of  Central  America. 


From— 

1887. 

1897. 

$15,800,285 
2.935,447 
4,941,464 

a  1,739,304 

$23,999,561 
7,739  907 

5,266,444 

The  Central  American  trade  has  not  reached  large  proportions,  but  it  is  growing.  Our 
share  has  more  than  doubled  in  the  decade  188T-1897,  while  that  of  the  United  Kingdom  and 
German}^  remained  nearly  stationary.  In  1903  we  exported  to  Central  America  $5,785,000  worth 
of  commodities,  and  imported  articles  to  the  value  of  $10,29-4,000,  a  trade  more  than  double  the 
figures  of  1897.  Under  present  conditions,  the  Pacific  coast  of  the  United  States  trades  with 
the  Pacific  coast  of  Central  America,  and  our  Atlantic  coast  ports  with  the  Caribbean  section. 
The  canal  will  enable  each  of  our  coasts  to  find  a  market  on  the  opposite  seaboard  of  Central 
America.  This  and  the  industrial  development  of  the  American  Isthmus  resulting  from  the  canal 
will  largely  promote  the  commerce  of  the  United  States  with  Central  America. 

II.    WESTERN    MEXICO." 

The  area  of  that  part  of  Mexico  draining  directly  into  the  Pacific  Ocean  comprises  over 
300,000  square  miles,  and  is  equal  in  size  to  California,  Oregon,  and  Washington.  The  northern 
half  of  this  Pacific  slope  of  Mexico  resembles  the  southern  part  of  California  and  Arizona  in 
climate  and  general  physical  conditions.  The  southern  half  of  the  region  is  tropical  in  character, 
the  section  beyond  Tehuantepec  being  physiographically  a  continuation  of  Guatemala. 

According  to  the  census  of  1895  the  section  under  consideration  contained  approximate!}^ 
4,000,000  people,  and  until  the  construction  of  the  railways  about  the  Citj'  of  Mexico  and  on  the 
Mexican  Plateau  stimulated  the  growth  of  population  in  that  part  of  the  Republic,  the  rate  of 
increase  was  greater  on  the  Pacific  slope  than  in  the  country  as  a  whole. 

The  Pacific  slope  of  Mexico  is  more  geographically  isolated  than  are  the  west  coast  States  of 
our  own  country.  Seven  transcontinental  railway  lines  connect  our  Western  States  with  the 
Mississippi  Valley  and  the  eastern  section  of  our  country,  but  as  yet  there  is  only  one  railway,  a 
spur  of  the  Southern  Pacific,  joining  the  western  part  of  Mexico  with  the  region  east  of  the 
Cordilleras.  While  the  railway  system  of  Mexico  has  been  rapidl}'  extended,  the  construction 
of  lines  connecting  the  j)lateau  with  the  Pacific  coast  has  made  slow  progress,  because  the  western 
slope  of  the  great  Mexican  Plateau  is  so  steep  as  to  make  railroad  building  extremely  difficult. 
The  result  of  this  lack  of  railway  lines,  connecting  western  Mexico  with  the  United  States  and 
with  Mexico  east  of  the  mountains,  has  been  that  the  region  is  in  the  main  commercially  tributary 
to  Europe. 

a  See  Plate  85. 
34998°— 12 22 


326  PAKUIA  CA]Sr.\X  TRAFFIC   .VjSTD   TOLLS. 


AGRICl'LTURAL   RESOl'RCES   OF   WESTERN    MEXICO. 


The  western  slope  of  Mexico,  being  situated  in  temperate  and  tropical  latitudes,  and  having 
a  variation  of  several  thousand  feet  in  altitude,  is  capable  of  producing  a  gi-eat  variety  of  agricul- 
tural products.  The  Tropic  of  Cancer  divides  the  region  under  discussion  into  two  nearly  equal 
sections,  the  most  important  port  of  the  region  in  the  temperate  latitude  being  Mazatlan,  s^ituated 
just  north  of  the  Tropics.  In  the  irrigated  portion  of  the  temperate  section  wheat  can  be  grown 
to  advantage,  and  also  subtroi^ical  fruits.  In  the  tropical  latitudes  sugar,  coflee,  and  other  tropical 
products  are  grown. 

North  of  the  twentieth  parallel  irrigation  is  everywhere  necessary  for  agriculture,  but  south 
of  that  line  the  natural  rainfall  is  usually  sufficient.  In  this  temperate  region  the  amount  of 
cultivable  land  is  limited  to  the  portions  for  which  water  can  be  secured,  but  those  sections,  as  is 
usual  in  irrigated  regions,  are  highly  productive.  Several  valleys  of  western  Mexico  have  already 
been  irrigated,  and  a  reference  to  two  of  them  will  illustrate  the  results  that  are  being  accom- 
plished. 

In  the  valley  of  the  Yaqui  River,  which  flows  into  the  Gulf  of  California  a  few  miles  south 
of  Guaymas,  an  American  corporation  has  constructed  an  irrigation  ditch  40  miles  in  length,  by 
which  400,000  acres  of  land  can  be  watered.  In  this  irrigated  valley  corn,  cotton,  tobacco,  wheat, 
and  subtropical  fruits  can  be  and  are  raised.  The  wheat  produced  is  usually  sold  in  Mexico, 
although  in  1892  some  of  it  was  exported  b}'  way  of  New  Orleans  to  Europe.  Oranges  are 
exported  from  the  Yaqui  Valley  and  other  sections  of  the  State  of  Sonora  to  the  United  States. 

Somewhat  farther  south,  in  the  State  of  Sinaloa,  a  short  railway  has  been  built  from  the  port 
of  Altata  to  Culiacan,  and  along  the  line  of  this  railroad  irrigation  works  have  been  constructed, 
and  a  sugar  estate  established  upon  which  900  people  are  emplo^-ed.  A  few  j'ears  ago  this  region 
was  an  iminhabited  waste.  The  valley  in  which  this  sugar  estate  is  located  is  said  to  be  capable 
of  producing  4-0,000  to  50,000  tons  of  ^sugar  annually. 

A  reference  to  Lower  California  will  afford  another  illustration  of  the  agricultural  resources 
of  the  temperate  latitude  of  western  Mexico.  This  peninsula  has  an  extremely  arid  climate  and 
is  everywhere  infertile  except  in  the  limited  sections  where  irrigation  is  possible.  The  food 
supply  for  the  inhabitants  has  to  be  imported  to  a  large  extent,  although  some  sugar  is  exported 
to  the  mainland  from  the  irrigated  district  in  the  southern  part  of  the  peninsula.  The  most 
important  vegetable  product  of  Lower  California  is  the  agave,  a  plant  that  grows  in  many  parts 
of  Mexico.  There  are  several  species  of  the  plant,  one  producing  the  soft  pita  fiber  and  another 
the  hemp  of  commerce.  Henequin,  or  sisal,  the  species  of  agave  that  grows  in  Yucatan,  and 
from  which  the  so-called  hemp  is  obtained,  also  grows  in  Lower  California,  although  it  has  not 
yet  been  cultivated  for  exportation.  It  seems,  however,  that  the  production  of  hemp  in  Yucatan 
is  nearing  its  possible  maximum,  and  that  the  hemp  of  Lower  California  will  soon  become  com- 
mercially important.  In  view  of  the  fact  that  the  largest  market  for  sisal  is  in  that  part  of  the 
United  States  east  of  the  Rocky  Mountains,  and  that  the  article  is  a  bulky  one,  whose  costs  for 
transportation  are  comparatively  large,  it  would  seem  that  the  opening  of  the  isthmian  canal  would 
have  a  very  favorable  effect  upon  the  development  of  the  hemp  industry  of  Lower  California. 

In  the  tropical  part  of  western  Mexico  the  most  important  agricultural  product  is  coffee.  In 
the  neighborhood  of  ^Mazatlan  and  Manzanillo  there  are  some  estates  from  which  coffee  is  now 
exported.     The  industry  seems,  however,  to  be  in  a  backward  state  of  development. 

The  resources  of  tropical  Mexico  from  Manzanillo  east  are  now  of  but  small  importance  to 
international  trade.  The  economic  and  social  conditions  of  Chiapas,  the  State  next  to  Guatemala, 
will  illustrate  this  fact.  This  State  of  Chiapas  is  the  continuation  of  the  coffee  belt  that  crosses 
Guatemala,  but  of  the  20,000,000  acres  of  land  comprised  within  the  State  only  6,000,000  acres 
have  as  yet  become  private  property,  and  it  is  said  that  only  70,000  acres  are  under  cultivation.  The 
population  of  the  State,  including  foreigners,  comprises  only  820.000  people.  A  beginning  has 
been  made  in  the  cultivation  of  rubber  trees,  but,  unless  some  change  may  have  occurred  since 
1900,  there  is  neitlier  railroad,  bank,  nor  electric  light  in  the  State,  nor  are  there  any  modern 
agricultural  implements  used.  The  construction  of  an  isthmian  canal  would  bring  this  part  of 
Mexico  into  close  commercial  connection  with  the  countries  of  the  North  Atlantic. 


MINERAL    RESOURCES. 


The  Republic  of  Mexico  is  a  verj-  mountainous  country,  possessing  extensive  deposits  of 
gold,  silver,  copper,  lead,  and  other  metals.  Up  to  the  present  time  foreign  capital  has  gone 
more  largely  into  mining  than  into  any  other  enterprises.  As  the  transportation  system  of  the 
country  is  developed,  and  the  population  becomes  denser,  a  larger  diversification  of  industries  may 
be  expected,  but  for  some  time  to  come  the  mineral  industries  will  be  of  chief  consequence.  They 
will  always  rank  high. 

The  western  Cordilleras  of  Mexico  contain  the  richest  mineral  deposits  of  the  country,  and 


P.lNAiLA.  Ci^-U.   TRAFFIC   .^D   TOLLS.  327 

it  is  the  northern  half  of  these  western  Cordilleras  that  possesses  the  greatest  mineral  wealth. 
Thus  far  the  mining  operations  of  this  section  have  been  contined  mainly  to  the  eastern  slope. 
Some  mining  operations  are  being  carried  on  near  the  Pacific  coast,  but  the  larger  part  of  the 
mountainous  region  has  yet  to  be  developed  by  mining  operations. 

The  location  of  these  western  Cordilleras  is  such  that  the}-  are  naturally  tributary  to  the 
Pacific  rather  than  to  the  Cndf  of  Mexico.  Some  of  the  mountains  are  within  50  miles  of  the 
Pacific,  and  practically  all  of  these  western  ranges  are  within  300  miles  of  that  ocean.  They 
average  from  two  to  three  times  the  latter  distance  from  the  Gulf.  At  the  present  time  four 
railroads  are  being  constructed  from  the  plateau  westward  across  these  ranges  to  the  Pacific,  but 
it  will  probably  be  some  time  before  any  of  them  can  be  completed.  One  of  the  great  drawbacks 
to  the  mineral  development  of  western  Mexico  at  the  present  time  is  the  high  cost  of  fuel  on  the 
Pacific.  Coke  is  now  brought  from  Europe  by  way  of  Cape  Horn  to  western  Mexico.  It  is 
possible  that  by  the  time  the  canal  has  been  opened  good  coal  will  be  found  in  sufficient  quantitj' 
in  the  mountains  of  western  ^Mexico.  Should  this  not  happen,  it  will  be  possible  to  export  coal 
from  our  Southern  cities,  by  way  of  the  canal,  to  western  Mexico,  for  sale  at  about  half  the  price 
at  present  prevailing  in  that  locality. 

^Vithout  attempting  to  speak  in  detail  of  the  mining  operations  now  being  conducted  in  the 
western  part  of  Mexico,  reference  may  be  made  to  the  fact  that  there  is  a  large  number  of  gold 
and  silver  mines  in  operation  in  the  neighborhood  of  Mazatlan.  The  output  from  this  region, 
both  of  gold  and  silver,  is  rapidly  increasing.  Old  mines  are  being  reopened,  the  cjanide 
process  is  being  inti'oduced,  and  the  construction  of  the  raijroad  from  Durango  through  to  the 
coast  is  being  pushed.  Ninety  miles  cast  of  Culiacan  an  American  company  has  erected  a  water- 
power  plant  that  fuinishes  500  horsepower  thnnighout  the  year.  The  power  is  converted  into 
electricity  for  use  in  the  mines.  In  the  northwestern  part  of  the  State  of  Durango,  in  the  Topia 
district,  there  is  a  region  possessing  silver  ores,  lead,  iron,  and  limestone  in  abundance.  In 
southwestern  Chihuahua  are  valuable  deposits  of  gold  and  silver.  This  district  is  at  present  300 
miles  from  a  railroad,  and  the  Topia  district,  just  mentioned,  is  now  106  miles  distant  from  the 
railway.  The  consequence  is  that  in  both  sections  mining  operations  can  now  be  carried  on  only 
on  a  small  scale.  Mention  is  made  of  these  districts  to  call  attention  to  the  fact,  that  the  con- 
struction of  railways  and  better  facilities  for  shipment  from  Pacific  ports,  can  add  very  much  to 
the  already  important  mining  industries  of  western  Mexico.  Mention  might  be  made  of  numer- 
ous other  mining  industries;  those  spoken  of  are  merely  illustrative. 

The  peninsula  of  Lower  California  has  valualile  resources  of  gold,  silver,  copper,  and  salt. 
Some  American  companies  are  now  mining  gold  and  silver,  and  a  French  corporation,  the  Baleo 
Copper  Company,  at  Santa  Rosalia,  is  annuall^v  shipping  IS. 000  tons  of  copper  and  copper  matte 
to  Europe.  Some  of  this  product  goes  across  the  Gulf  of  California  to  Guaymas  and  is  sent  in 
bond  to  New  Orleans  and  thence  to  Europe.  More  of  it,  however,  is  sent  around  the  Horn. 
The  company  imports  about  60,000  tons  of  coke  bj-  way  of  the  cape,  and  its  mining  supplies 
come  from  the  same  source  b\'  the  same  route. 

THE   CANAL    AND    THE    COMMERCE    OF    WESTERN    MEXICO. 

The  character  of  the  trade  of  western  Mexico  and  the  effects  which  the  canal  will  have  upon 
that  trade  can  best  be  illustrated  by  reference  to  the  trade  of  Mazatlan,  the  most  important  port 
of  the  region.  The  information  herein  given  in  regard  to  the  industries  and  trade  of  Mazatlan 
is  taken  from  an  excellent  special  report  prepared  in  1900  for  the  Isthmian  Canal  Commission  by 
the  United  States  consul  located  in  that  city. 

The  commercial  connections  of  Mazatlan  with  the  United  States  are  by  steamers  running  to 
San  Francisco  and  to  Panama.  A  minor  share  of  this  trade  is  handled  bv  the  Southern  Pacific 
Railwa}'.  The  facilities  for  shipping  between  Mazatlan  and  Europe  are  much  better.  The 
Chilean  line  carries  some  of  Mazatlan's  exports  to  Valpai-aiso  where  they  are  transferred  to 
vessels  bound  for  Europe.  A  French  line  and  a  German  line  of  steamers  make  regular  calls  at 
Mazatlan.  There  are  also  two  sailing  vessels  carrying  coal  from  England  to  Mazatlan,  and  from 
time  to  time  other  sailing  vessels,  as  occasion  requires,  are  operated  under  charters  from 
England,  France,  and  Germany.  Having  better  and  cheaper  connections  with  Europe,  the  trade 
of  Mazatlan  is  mainly  with  that  Continent. 

A  New  York  exporter  of  machinery  says: 

At  present  a  planter  in  "the  Pacific  countries  of  Central  America  and  Mexico  can  sfiip  coffee  and  rice  machinery 
from  any  European  port,  and  secure  freight  rates  which  would  involve  a  saving  of  from  5  to  10  per  cent  on  the  value 
of  his  purchase,  provided  the  cost  price  was  equal  to  that  quoted  here. 

The  total  foreign  trade  of  Mazatlan  in  1899  amounted  to  $42,000,000  Mexican  silver,  and  at 
the  present  time  this  trade  is  mainly  controlled  by  the  merchants  of  Hamburg,  Liverpool,  and 
Bordeaux.     The  vessels  that  take  out  coal  and  other  commodities  from  Europe  load  back  with 


328  PANAMA  CANAL  TRAFFIC   AND   TOLLS. 

ore,  tropical  woods,  and  the  other  exports  of  Mazatlan.  In  1899  Mazatlan  sent  to  Europe 
$500,00U  worth  of  logwood  and  mahogany,  whereas  our  imports  of  those  woods  amount  to 
§16,000.  An  interesting  contrast  to  this  is  offered  by  the  trade  of  Tampico,  on  the  opposite  side 
of  Mexico.  The  commerce  of  that  city  is  larger  with  the  United  States  than  with  any  other 
country,  three-eighths  of  the  city's  imports  being  from  our  countr}-. 

Although  the  present  trade  of  Mazatlan  is  comparatively  large,  it  is  much,less  than  it  will  be 
when  tlio  means  of  conuuunication  with  the  tributary'  country  have  been  improved.  At  the  pres- 
ent time  there  are  no  railway  connections  with  the  interior,  all  the  trade  being  handled  bj^  coast- 
ing vessels  or  by  wagons  and  pack  mules.  The  completion  of  a  railroad,  now  being  built  west- 
ward from  Durango,  will  greatly  enhance  the  commercial  importance  of  Mazatlan. 

Our  manufacturing  cities  in  the  eastern  part  of  the  United  States  will  be  between  1,000  and 
2,000  miles  nearer  to  western  Mexico,  by  way  of  the  canal,  than  to  San  Frsincisco  and  Seattle. 
This  region,  moreover,  is  so  situated  that  the  vessels  engaged  in  our  interoceanic  coasting  trade 
can  conveniently  engage  in  its  commerce.  The  isthmian  canal  will  cheapen  the  cost  of  construct- 
ing railroads  in  western  Mexico,  and  will  lower  the  cost  of  machinery  needed  in  the  development 
of  the  mines  and  plantations.  It  is  quite  probable  also  that  the  coal  from  the  southern  part  of 
the  United  States  will  be  taken  to  western  Mexico  through  the  canal,  and  it  is  possible  that  the 
canal  will  make  profitable  the  development  of  the  great  iron  deposits  of  Durango.  This  vast 
deposit  of  iron  ore  in  Durango  is  situated  within  125  miles  of  the  Pacific,  with  which  it  might 
readily  be  connected  by  rail. 

At  the  present  time  the  commo*-ce  of  western  Mexico  is  mainly  with  Europe,  and  the  most 
important  commercial  route  is  that  around  South  America.  The  opening  of  the  isthmian  canal 
will  give  it  closer  connections  with  the  United  States  than  with  Europe,  and  it  seems  probable 
that  its  trade  will  eventually  be  handled  largely  by  our  merchants. 


Chapter  XVII. 


COMPARISON  OF  DISTANCES  BY  THE   ISTHMIAN   CANAL  AND  OTHER  ROUTES. 

In  determining  what  commerce  would  use  an  isthmian  canal;  the  fact  of  most  fundamental 
importance  is  the  eli'ect  which  the  new  waterway  will  have  on  the  ocean  distances  between  the 
trade  centers  adjacent  to  the  Atlantic  and  those  in  and  about  the  Pacific.  The  length  of  the  route 
determines  the  time  of  the  voj-age,  and  in  general  the  commerce  of  the  world  is  so  conducted  as 
to  minimize  distances  as  much  as  the  conditions  of  ocean  navigation  and  international  exchanges 
permit.  It  is  accordingly  desirable  to  preface  the  discussion  of  the  traffic  of  an  isthmian  canal 
with  a  comparison  of  the  distances  between  the  Atlantic  and  Pacific  by  way  of  the  American 
isthmus  with  those  by  way  of  the  various  routes  now  followed.  This  comparison  can  best  be 
made  by  weans  of  a  series  of  tables  giving  the  distances  by  alternative  routes  "  between  the  most 
important  commercial  centers.  In  most  respects  the  table.s  are  self-interpretative.  The  distances 
are  expressed  in  nautical  miles,  and  the  figures  used  in  compiling  the  tables  were  furnished  by 
the  United  States  Hydrographic  Office.  The  length  of  each  canal  is  reckoned  in  nautical  miles', 
the  Nicaragua  Canal  being  161  nautical  miles  long,  the  Panama  41,  and  the  Suez  88. 

In  the  first  table  a  comparison  is  made  between  the  distances  by  the  Nicaragua  Canal  with 
those  by  the  Straits  of  Magellan  and  the  west  coast  of  North,  Central,  and  South  America.* 

Table  I.— Distances  via  the  Nicaragua  and  Magellan  routes  between  the  eastern  ports  of  the  Cniled  Slates  aiid  the  ports  of 
the  west  coast  of  North,  Central,  and  South  America. 


From— 

Via- 

To 
Sitka. 

To  Port 
Town- 
send. 

To  Port- 
land. 

To  San 
Fran- 
cisco. 

To  San 
Diego. 

To  Aca- 
pulco. 

To  San 
Jos€  de 
Guate- 
mala, 

Portland,  Me 

Boston 

piicaragua 

iMagelianc 

(Niuaragua 

lMagellan<^ 

/Nicaragua 

iMagellanc 

{Nicaragua 

(Magellan  <• 

(Nicaragua 

iMagellanc 

/Nicaragua 

t-Magellanf 

1  Nicaragua  rf 

■JMagellani; 

(Nicaragua  <• 

IMagellanc 

(Nicaragua/ 

iMagellanc 

(Nicaragua 

IMagellanc 

(Nicaragua 

iMagellanc 

(Nicaragua 

IMagellanc 

/Nicaragua 

IMagellanc 

(Nicaragua 

IMagellanc 

C,418 
15,021 

6,373 
14,986 

6,223 
15,016 

6,171 
15,066 

6,143 
15,078 

6,013 
14,942 

5,803 
14,9.51 

6,809 
14,980 

5,767 
14,955 

5,280 
15,116 

5.386 
15,3j0 

5,314 
15,362 

5,420 
15,416 

5,603 
15,598 

5,891 
14,494 

5,856 
14,4,59 

5,696 
14.489 

5,636 
14,539 

5,616 
14,551 

5, 486 
14,415 

6,276 
14.424 

5,282 
14,453 

5,240 
14,428 

4,753 
14,589 

4,859 
14,793 

4,886 
14,835 

4,893 
14,889 

6,076 
15,071 

5,766 
14,369 

5, 731 
14,334 

.5,571 
14,364 

5,511 
14,414 

5,491 
14,426 

6,361 
14,290 

6,151 
14,299 

5,157 
14,328 

5, 115 
14, 303 

4,628 
14, 464 

4,734 
14, 668 

4,761 
14,710 

4,768 
14,764 

4,951 
14,916 

5,116 
13,719 

5,081 
13,681 

4,921 
13,714 

4,861 
13, 764 

4,841 
13, 776 

4,711 
13,640 

4,501 
13,649 

5,704 
13,678 

4,465 
13,653 

3,978 
13,814 

4,084 
14,018 

4,111 
14,060 

4,118 
14,114 

4,301 
14,296 

4.668 
13,342 

4,633 
13,307 

4,473 
13,337 

4,413 
13,387 

4,393 
13,399 

4,263 
13,263 

4,053 
13,272 

4,059 
13,301 

4,017 
13,276 

3,630 
13,437 

3,636 
13,641 

3,663 
13,683 

3,670 
13,737 

3,&53 
13,919 

3,291 
11,896 

3,256 
11,861 

3,096 
11,891 

3,036 
11,941 

3,016 
11,953 

2,886 
11,817 

2,676 
11,826 

2,682 
11,855 

2,6)0 
11,830 

2,163 
11,991 

2,259 
12,196 

2,286 
12,237 

2,293 
12,291 

2,476 
12, 473 

2,736 
11,466 

2,701 
11,431 

2,511 

Philadelphia 

11,461 
2,481 

11,511 
2,461 

Norfolk 

11,523 
2,331 

11,387 
2,121 

11,396 
2.127 

11,425 
2,085 

11,400 
1,598 

11,661 
1,704 

-Mobile 

11,765 
1,731 

11,807 
1,738 

11,861 
1,921 

11,043 

<i Consult  Plate  74  for  a  chart  of  ocean  routes  by  way  of  existing  trade  lines  and  by  wav  of  tbe  Nicaragua  and  Panama  canals 
SThese  tables  were  prepared  in  1901  before  the  decision  had  been  reached  as  to  whether  the  Nicaragua  or  Panarua  route  should  be 
adopted.    However,  the  tables  and  the  chart  are  so  worked  out  as  to  show  the  distances  both  by  the  Panama  route  and  the  Nicaragua  rout" 
cVia  Pernambuco,  Callao,  and  San  Francisco  for  points  beyond  these  ports, 
li  Vessels  going  by  west  end  of  Cuba  will  shorten  voyage  69'mlles  for  Charleston. 
C104  for  Savannah. 
/ 136  for  Jacksonville. 

329 


330 


PAX.UIA   CANAL   TEAFFIC   AND  TOLLS. 


Table  1. — Distance»via  the  Nicaragua  and  Magellan  routes  between  the  eastern  ports  of  the  United  States  and  the  ports  of 
the  west  coast  of  North,  Central,  and  South  America — Continued. 


From— 

Via— 

To  Hono- 
lulu. 

To  Guaya- 
quil. 

To  Callao. 

Tolquique. 

To  Val- 
paraiso. 

To  Coro- 
nel. 

(Nicaragua 

IMagellana 

(Nicaragua 

IMagellana 

(Nicaragua 

tMagellan  a 

[Nicaragua 

IMagellan  o 

(Nicaragua 

iMagellana 

(Nicaragua 

IMagellana 

(Nicaragua!) 

IMagellana 

(Nicaragua  <■ 

IMagellana 

(Nicaraguad 

IMagellana 

Nicaragua 

iMagellana 

(Nicaragua 

IMagellana 

/Nicaragua 

iMagellana 

/Nicaragua 

IMagellana 

(Nicaragua 

IMagellana 

6,G26 
14,854 

(),  591 
14,819 

C,431 
11.489 

0,371 
14,899 

6,351 
14,911 

6,221 

6' Oil 
14,784 

6,017 
14,813 

6,975 
14,788 

5,488 
14,949 

5,594 
15, 153 

6,  621 
15, 195 

5,628 
15,249 

5,811 
15,431 

3,441 
10,428 

3,403 
10,393 

3,246 
10,423 

3,186 
10,473 

3,166 
10,485 

3,036 
10,349 

2,826 
10,358 

2,832 
10,387 

2,790 
10,362 

2,303 
10,523 

2, 409 
10,727 

2,436 
10,769 

2,443 
10,823 

2,626 
11,005 

3,946 

9,707 
3,911 
9,672 
3,751 
9,702 
3,691 
9,752 
3,671 
9,764 
3,541 
9,628 
3,331 
9,637 
3,337 
9,666 
3,295 
9,641 
2,808 
9,802 
2, 914 

10,00(i 
2,941 

10,048 
2,948 

10,102 
3,131 

10,284 

4.588 
9,226 
4,553 
9,199 
4,393 
9, -^21 
4,333 
9,271 
4,313 
9,283 
4,191 
9,147 
3,973 
9,156 
3,979 
9,185 
3,937 
9,160 
3,450 
9,321 
3,656 
9,525 
3,583 
9,667 
3,590 
9,621 
3,773 
9,803 

5,173 
8,866 
5,138 
8,431 
4,978 
8,461 
4,918 
8,511 
4,898 
8,523 
4,768 
8,387 
4,558 
8,396 
4,564 
8,425 
4,522 
8,400 
4,035 
8,561 
4,144 
8,765 
4,168 
8,807 
4,175 
8,861 
4,358 
9,043 

5,356 

5,321 

New  York 

5, 161 

Philadelphia 

5,101 

4,581 

Norfolk 

4,951 

8,156 
4,741 

8,165 
4,747 

8,194 
4,705 

8,169 
4,218 

8,339 
4,324 

Mobile 

8,534 
4,351 

8,576 
4,358 

8,630 
4,541 

8,812 

a  Via  Pernambuco,  Callao,  and  San  Francisco  for  points  beyond  these  ports. 
f>  Vessels  going  by  west  end  of  Cuba  will  shorten  voyage  69 "miles  for  Charleston. 


<^  104  for  Savannah. 
d  136  for  Jackscjnville. 


The  above  table  compares  the  distances  by  way  of  the  Nicaragfua  Canal  with  those  through 
the  Straits  of  Magellan  from  the  chief  ports  of  our  Atlantic  an(i  Gulf  seaboard  extending,  from 
Portland  to  Galveston,  to  thirteen  representative  ports  on  the  west  coast  of  the  American  con- 
tinents. Coronel,  the  most  southerly  of  tlie  west  coast  ports  mentioned  in  the  table,  is  situated 
within  two  or  three  hundred  miles  of  the  southern  limits  of  the  industrial  section  of  Chile.  It  is 
also  an  important  coaling  port  at  the  present  time.  It  will  be  observed  that  the  distance  from 
New  Yoriv  to  Coronel  by  way  of  the  Nicaragua  Canal  is  3,(>5'.t  miles  less  than  the  present  route 
through  the  Straits  of  Magellan. 

The  effect  of  an  isthmian  canal  upon  the  length  of  ocean  routes  connecting  our  eastern  sea- 
board with  the  west  coast  of  the  three  Americas  is  well  shown  by  comparing  the  distances  by 
way  of  a  Nicaragua  Canal  and  the  Straits  of  Magellan  from  New  York,  the  largest  Atlantic  port, 
and  from  New  Orleans,  the  largest  Gulf  port,  to  San  Francisco,  the  representative  west  coast 
city  of  the  United  States,  to  Iquique,  the  center  of  the  nitrate  of  soda  section,  and  to  Coronel,  in 
southern  Chile.     This  comparison  is  shown  in  the  following  table: 


To— 

From  New  York  via — 

From  NewOrleans  via— 

Nicaragua. 

Magellan. 

Nicaragua. 

Magellan. 

4,921 
4,393 
5,161 

13,714 
9,221 
8,230 

4,118 
3,590 
4,358 

9,621 
8,630 

In  the  following  table  (II)  the  distances  from  representative  European  ports  to  the  west 
coast  of  the  American  continents  b}'  the  Nicaragua  and  Magellan  routes  are  given: 

Table  II. — Distances  from  Europe  to  Pacific  poj-ts  via  the  Nicaragua  Canal  and  the  Straits  of  Magellan. 


Nicara-      Magel- 
gua.  Ian.  a 


Nicara- 
gua. 


From  Bordeaux 


From  Gibraltar 


Nicara- 
gua. 


Magel-      Nicara- 
Ian.  a  gua. 


Sitka 

Port  Townsend 

Portland 

San  Francisco 

San  Diego 

Acapulco 

San  Jos^  de  Guatemala 

Honolulu 

Guayaquil 

Callao 

Iquique 

Valparaiso 

Coronel , 


7,651 
7,214 
5,840 
5,285 
9,175 
5,975 
6,481 
7,123 
7,708 


15,386 
14,859 
14, 734 
14,084 
13, 707 
12,261 
11,831 
15,219 
10, 722 
10,072 
9,591 
8,831 
8,600 


9,470 
8,943 
8,818 
8,168 
7,718 
6,343 
5,788 
9,678 
6,493 
6,998 
7,640 
8,225 
8,408 


15,836 
15,309 
15,181 
14,534 
14, 157 
12.711 
12, 281 
15,669 
11,172 
10,  .522 
10,041 
9,281 
9,050 


9,191 
8,664 
8.  .539 
7,889 
7,439 
6,064 
5,509 
9,399 
6,214 
6,719 
7,361 


15,557 
15,030 
14,905 
14,255 
13, 878 
12, 432 
12, 002 
15,  390 
10, 893 
10, 243 
9,762 
9,002 
8,771 


8,941 
8,414 
8,289 
7,639 
7,189 
5,814 
5,2.59 
9,149 
5,964 
6,469 
7,111 
7,696 
7,879 


15, 073 
14,546 
14, 421 
13,  771 
13, 394 
11,948 
11,518 
14,906 
10,409 
9,269 
9,278 
8,518 
8,287 


8,675 
8,148 
8,023 


8,883 
6,698 
6,203 
6,845 
7,430 
7,613 


14,455 
13,928 
13, 803 
13, 153 
12, 776 
11,330 
10,900 
14,288 
9,791 
9,141 
8,660 
7,900 
7,669 


a  Via  Pernambuco,  Callao,  and  San  Francisco  for  porta  north  of  those  cities. 


FAN^VIVIA   CANAL  TRAFFIC   AND   TOLLS. 


531 


The  Eui'opean  ports  included  in  the  above  table  are  so  situated  that  the  distances  from  them 
to  Pacific  ports  typify  the  distances  from  the  leading  industrial  and  commei'cial  centers  of  Eurojje. 
It  will  be  observed  that  the  distance  from  Liverpool  to  Coronel  by  wa}"  of  the  Nicaragua  Canal 
will  be  700  miles  less  than,  by  the  route  through  the  Strait  of  Magellan.  The  route  to  the  nitrate 
port  of  Iquique  will  be  shortened  2,468  miles.  San  Francisco  will  be  bi-ought  6,433  miles  nearer 
to  Liverpool  and  6, "SO  miles  nearer  to  (Tibraltar. 

In  Tables  III,  IV,  and  V  the  distances  from  the  Atlantic  American  ports  to  Pacific  countries, 
by  way  of  the  Nicaragua  Canal,  and  by  way  of  existing  routes  are  compared. 


Table  ni.—Dlxlane 


ill  miatic'd  mile.'!,  from  Atlantic  American  parts  to  Yokohama,  Shanr/hai,  and  Hongkong  via  the 
Nicaragua  and  Suez  routes. 


To  Yokohama 

via- 

To  Shanghai  via— 

To  Hongkong  via— 

Suez.a 

San  Fran- 

Colc.mbo, 

San  Fran- 

Suez.(' 

cesco, 

Hono- 

Hono- 
lulu, 
Guam, 

and 
Manila. 

San  Fran- 

Singa- 

cisco. 

Honolulu 
and  Yo- 
kohama. 

Colombo, 

Great 

lulu,  Yo- 

cisco and 

Hono- 

pore, 

Great  Cir- 

Singa- 

Circle. 

kohama, 

Great 

lulu. 

Hong- 

cle, and 

pore,and 

\  okaha- 

and 

and  Sin- 

Circle. 

kong,  and 

Yoko- 

Hong- 

ma and 

Shang- 

gapore. 

Shang- 
hai. 

hama. 

kong. 

Shang- 
hai. 

hai. 

9,652 

10, 026 

13, 330 

10, 702 

11,076 

12,280 

11,  .561 

11, 935 

12, 097 

11,421 

9,617 

9,991 

13,370 

10,667 

11,041 

12, 320 

11,526 

11,900 

12, 062 

11,461 

9,457 

9,831 

13,564 

10,507 

10,881 

12,514 

11,366 

11, 740 

11,902 

11,655 

9.397 

9,771 

13,707 

10, 447 

10,821 

12,657 

11,306 

11,680 

11,842 

11,798 

9,377 

9,751 

13,852 

10,427 

10, 801 

12,802 

11,286 

11, 660 

11,822 

11,943 

9,247 

9,621 

13,  727 

10, 297 

10, 671 

12, 677 

11, 156 

11,530 

11,692 

11,818 

<-9,037 

0  9,411 

13,982 

c 10, 087 

c 10, 461 

12,932 

1^10,946 

<;ll,320 

011,482 

12,073 

"9,043 

"9,417 

14,057 

"  10, 093 

"10,467 

13,007 

"10,952 

"11,326 

"11,488 

12,148 

e  9, 001 

■•9,375 

14, 137 

c 10, 061 

e 10, 425 

13,087 

e  10,  910 

ell,  284 

■^11,446 

12,228 

8,514 

8,888 

14,629 

9,564 

9,938 

13,  .579 

10,423 

10,797 

10,959 

12,720 

8,620 

8,994 

14,833 

9,670 

10,044 

13,  783 

10,529 

10,903 

11,065 

12,924 

8,647 

9,021 

14,875 

9,697 

10,071 

13,825 

10  556 

10,930 

11,092 

12,966 

8,0M 

9,02.8 

14. 929 

9,704 

10, 078 

13,879 

10.563 

10,937 

11,099 

13,020 

8,837 

9,131 

15,111 

9,807 

10, 181 

14,061 

10,  666 

11,040 

11,202 

13,202 

Portland 

Boston 

New  York 

Philadelphia . 

Baltimore 

Norfolk 

Charleston  ... 

Savannah  

Jacksonville.. 
Port  Tampa  - . 

Pen.sacola 

Mobile 

New  Orleans  . 
Galveston 


a  Direct  voyage  from  Singapore  to  Yokohama  reduces  this  distance  by  393  miles. 
&  Direct  voyage  from  Singapore  to  Shanghai  reduces  this  distance  by  66  miles. 
0  Vessels  going  by  west  end  of  Cuba  will  shorten  voyage  69  miles  for  Charleston. 
"104  miles  for  Savannah.  e  136  miles  for  Jacksonville. 

In  Tal)le  III  the  distances  from  representative  ports  of  the  Atlantic  and  Gulf  to  Yokohama, 
Shanghai,  and  Hongkong  by  way  of  the  various  alternative  routes  are  given.  The  distances 
given  in  the  table  are  those  which  a  vessel  would  take  in  going  by  actual  commercial  routes.  It 
has  been  deemed  more  important  to  deal  with  distances  l)y  commercial  routes  rather  than  by  the 
shortest  possible  course.  The  shortest  route  from  the  American  Isthmus  to  Japan  or  China  is  by 
waj^  of  the  Great  Circle.  The  distance  from  Brito  to  Yokohama  direct  is  7,122;  via  Magdalena  Bay, 
Lower  California,  7,144;  via  San  Francisco,  7,236;  and  via  Honolulu,  7,610  miles.  By  the  Great 
Circle  route  a  vessel  can  call  at  San  Francisco  by  adding  onh-  114  miles  to  its  voyage;  and  with 
this  call  at  San  Francisco  included,  the  distance  from  New  York  to  Shanghai  by  the  Great  Circle 
and  Yokohama  is  374  miles  less  than  via  Honolulu  and  Yokohama.  The  Nicaragua  route  is 
shorter  than  the  Suez  route  for  all  Asiatic  points  mentioned  in  the  table,  the  advantages  of  the 
Nicaragua  route  being  greater  for  our  Gulf  ports  than  for  those  on  the  Atlantic.  Especial  note 
may  be  made  of  the  fact  that  the  distance  to  Hongkong  by  way  of  Honolulu,  Guam,  and  Manila 
is  considerably  greater  than  by  a  route  which  enables  a  vessel  to  call  en  route  at  San  Francisco, 
Yokohama,  and  Shanghai.  The  latter  route  is  536  miles  less  for  a  vcs.sel  starting  from  New  York. 
^In  order  to  compare  the  distances  by  various  routes  connecting  our  eastern  seaboard  with 
Manila,  Table  IV  has  been  prepared. 

Table  W .'^Diatances,  in  nautical  miles,  from  American  Atlantic  jmrl-s  to  Manila  eia  Nicaragua  and  Suez  routes. 


Portland 

Boston 

New  York 

Philadelphia. 

Baltimore 

Norfolk 

Charleston  a  . 
Savannah b.. 
Jacksonvilleo 
Port  Tampa.. 

Pensacola 

Mobile 

New  Orleans. 
Galveston 


via  San 
Francisco, 

Great 
Circle,  and 
Yokohama. 


11,402 
11,367 
11,207 
11, 147 
11,127 
10,997 
10,711 
10,717 
10,667 
10,264 
10,  370 
10, 397 
10,404 
10,587 


Via 
Honolulu 

and 
Yokohama, 


11,776 
11, 741 
11,. 581 
11, 521 
11,501 
11, 371 
11,085 
11,091 
11,041 
10, 63S 
10,744 
10,771 
10, 778 
10, 961 


Via 
Honolulu 
Yokohama, 
Shanghai, 

and 
Hongkong. 

12,563 
12,528 
12,368 
12, 308 
12,288 
12,158 
11, 872 
11,878 
11,826 
11,425 
11,531 
11,558 
11,565 
11, 748 


Via 

Honolulu, 

and 

Guam. 


11,469 
11,434 
11,274 
11, 214 
11,194 
11,064 
10, 778 
10,784 
10,734 
10,331 
10, 437 
10,464 
10, 471 
10, 674 


Via  Suez, 
Colombo, 

Singapore. 


11,367 
11,407 
11,601 
11,744 
11,889 
11,764 
12, 019 
12,094 
12, 174 
12,266 
12, 870 
12,912 
12,966 
13,148 


aThe  route  to  Greytown  via  west  end  of  Cuba  is  69  miles  less. 
ftThe  route  to  Greytown  via  west  end  of  Cuba  is  104  miles  less. 
c  The  route  to  Greytown  via  west  end  of  Cuba  is  136  miles  less. 


332 


PANAJVLA.  CANAL  TRAFFIC  AND   TOLLS. 


It  will  be  seen  in  the  table  that  the  distance  from  New  York  to  Manila  by  way  of  San  Fran- 
cisco, the  Great  Circle,  and  Yokohama,  is  11,207  miles,  and  that  the  distance  bj'  way  of  Honolulu 
and  Guam  is  11,274  miles.  The  Suez  route  is  longer  than  either  of  these  routes,  being  11,601 
miles.  A  vessel  bound  from  New  York  or  New  Orleans,  or  any  other  eastern  seaport  to  Manila 
can  call  at  San  Francisco,  Yokohama,  and  Hongkong  en  route  by  adding  720  miles  to  the  length 
of  a  voyage  by  way  of  Honolulu  and  Guam.  Manila,  it  will  also  be  noticed,  is  .somewhat  nearer 
the  eastern  part  of  the  United  States  by  way  of  the  Nicaragua  Canal  than  by  way  of  Suez. 

The  manner  in  which  the  Nicaragua  C^nal  would  affect  the  distances  between  our  eastern 
seaboard  and  Australia  is  shown  by  Table  V. 

Table  V. — Distances,  in  nautical  miles,  between  t)ie  eastern  seaboard  of  tlie  United  States  and  Australia  I'ia  the  Nicaragua 

and  Suez  routes. 


Portland 

Boston 

New  York 

Philadelphia. 

Baltimore 

Norfolk 

Charleston 

Savannah 

Jacksonville . 
Port  Tampa... 

Pensaeola 

Mobile 

New  Orleans . , 
GalTeston 


To  Adelaide  via— 


Brito, 
Tahiti. 
Sydney, 
and  Mel- 
bourne. 


St.  Vin- 
cent and 

Cape  of 
Good 
Hope. 


10,9»4 
10,919 
10, 759 
11,699 
10, 679 
10,549 
10,265 
10,269 
10,219 
9,816 
9,922 
9,949 
9,956 
10, 139 


12,446 
12, 459 
12,675 
12,641 
12,736 
12,614 
12,761 
12,821 
12,  M6 
12,243 
13,447 
13,489 
13,543 
13,725 


Brito, 
Tahiti, 

and 
Sydney. 


10,446 
10,411 
10,251 
10, 191 
10, 171 
10,041 
9, 155 
9,671 
9,711 
9,308 
9,414 
9,441 
9,448 
9,631 


St.  Vin- 
cent, 

Cape  of 
Good 
Hope, 
and 
Ade- 
laide. 


12,954 
12,907 
13,083 
13, 149 
13,244 
13,122 
13, 269 
13,329 
13,354 
13, 751 
13,955 
13,997 
14,051 
14,233 


To  Sydney  via — 


Brito 

and 

Tahiti.o 


St.  Vin- 
cent. 
Good 
Hope, 
Ade- 
laide, 
and  Mel- 
bourne. 


13, 529 
13,542 
13,658 
13, 724 
13,819 
13, 697 
13,&*4 
13,504 
13,929 
14,326 
14,530 
14,572 
14,626 
14,808 


«The  course  from  Brito  to  Sydney  direct,  omitting  call  at  Tahiti, 


To  Wellington  via— 


Brito 

and 

Tahiti.a 


St.  Vin- 
I     cent, 
Good 
Hope, 
and  Mel- 
bourne. 


8.911 
8,876 
8,716 
8,656 
8,632 
8,510 
8,220 
8,226 
8,196 
7,773 
7,879 
7,906 
7,913 


14,204 
14, 217 
14, 333 
14,399 
14, 494 
14,372 
14, 519 
14, 579 
14,604 
15,001 
15,205 
15, 247 
16,301 
15,483 


Straits 
of  Ma- 
gellan. 


11,419 
11,384 
11,414 
11,464 
11, 476 
11,140 
11,349 
11, 378 
11,353 
11,514 
11,718 
11, 760 
11,814 
11,9% 


vould  be  52  miles  less. 


The  distance  from  New  York  to  Australia  b^-  the  Cape  of  Good  Hope  is  practically  the 
same  as  by  the  Suez  Canal,  and  the  Cape  route  has  the  advantage  of  more  favorable  winds  and 
currents  and  of  a  cooler  temperature.  Vessels  going  from  our  eastern  coast  to  Australia  always 
round  the  Cape;  accordingly,  the  comparisons  of  Table  V  are  between  the  Nicaragua  and  Good 
Hope  routes.  Steamers  bound  for  Austi'alia  via  the  Cape  usually  call  at  St.  Vi'-cent  for  coal; 
hence  the  distances  given  in  the  table  include  a  call  at  that  island.  The  route  between  the 
American  isthmus  and  Australia  and  New  Zealand  is  by  way  of  the  centrally  located  Lsland  of 
Tahiti,  which  will  doubtless  become  an  important  coaling  station  upon  the  opening  of  the 
isthmian  canal. 

New  York  is  3,982  miles  nearer  Sj^dney  by  way  of  Brito  and  Tahiti  and  3,796  miles  nearer 
A'ia  Panama  and  Tahiti  than  via  St.  Vincent,  Good  Hope,  Adelaide,  and  Melbourne.  Adelaide  is 
1,816"  miles  nearer  New  York  and  3. .587  miles  nearer  New  Orleans  by  Brito  and  Tahiti  than  by 
Good  Hope.  For  the  Panama  route  the  figures  are  1,640  for  Adelaide-New  York,  and  3,209  for 
Adelaide-New  Orleans.  Wellington  would  be  brought  5,617*  miles  nearer  New  York  by  a 
Nicaragua  canal  and  5,-141  miles  by  the  Panama  Canal. 

The  places  in  Australia,  the  East  Indies,  and  southern  China,  equall}-  distant  from  New  York 
by  the  Nicaragua  and  Suez  routes,  are  shown  on  Plate  86.  It  will  be  observed  that  the  line  passing 
through  points  equidistant  from  New  York  via  the  two  canals  crosses  the  western  part  of 
Australia,  runs  west  of  the  Philippines,  and  touches  the  continent  of  Asia  in  the  neighborhood 
of  the  island  of  Hainan  considerably  to  the  west  of  Hongkong. 

In  Table  VI  the  distances  from  Liverpool  to  Australasia  and  the  Orient  by  wa}'  of  the 
Nicaragua  and  Suez  routes  are  contrasted. 

"Omitting  stop  at  Tahiti  would  add  52  miles  to  this  figure,  and  if  Melbourne  were  reached  by  Wellington  rather 
than  by  Sydney,  it  should  be  increased  by  232  miles. 

ftOmittingstop  at  Tahiti  would  add  185  miles  to  this  figure. 


PANAALi  CANAL   TKAFFIC   AND   TOLLS.  33H 

Table  VI. — Distances  from  Liverpool  to  the  Ecist  by  the  Suez  and  Nicaragua  routes. 


Suez  route. 

Nicaragua  route. 

Differ- 
ence- 

To— 

Ports  of  call. 

Nautical 
miles. 

Ports  of  call. 

Nautical 
miles. 

Suez,  — ; 
Nicara- 
gua +  . 

11,1.^1 
11,  Gait 
12, 234 

13,489 
12,981 
12,406 

11,446 

13,937 
13,777 
13,654 

12,187 

-2,338 

Melbourne 

Sydney 

Wellington 

Aden.a  Colombo.  King  George  Sound,  Adelaide 
Aden."  Colombo,  King  George   Sound,  Ade- 
laide, Melbourne. 
Aden.n  Colombo,  King  George  Sound,  Mel- 
bourne. 

-1, 322 

172 

do.i- 

-1-1,503 

9,677 
9,731 
11,362 

11,640 

-4,260 

dO.e 

-4,046 

Tientsin 

Aden,  Colombo.  Singapore,  Hongkong,  Shang- 
hai, 
do                                                          .... 

2,192 

-     547 

a  Direct  voyage  from  Aden  to  King  George  Sound  would  shorten  these  routes  540  miles. 

t  Direct  voyage  from  Brito  to  Sydney  would  shorten  these  routes  62  miles. 

"Direct  voyage  from  Brito  to  Wellington  would  shorten  this  distance  by  185  miles  and  make  the  difference  1,688  miles. 

d  A  stop  at  Shanghai  would  add  to  this  route  535  miles. 

f  A  stop  at  Shanghai  would  add  to  this  route  319  miles. 

With  the  exceptiou  of  Wellington,  the  Pacitic  ports  named  in  Table  VI  are  nearer  Liverpool 
via  the  Suez  Canal  than  by  way  of  Nicaragua.  From  Liverpool  to  Sydney,  however,  the  distance 
via  Brito  and  Tahiti  is  only  172  miles  and  via  Panama  357  miles  more  than  via  Suez,  Colombo, 
Adelaide,  and  ^Melbourne.  Yokohama  is  but  54:7  miles  farther  from  Liverpool  via  Brito  and  San 
Francisco,  and  !i3i  miles  farther  via  Panama  and  San  Francisco  than  via  the  easterly  route. 

The  route  from  Liverpool  to  Japan  and  China,  bj-  way  of  the  American  Isthmus,  piisses  close 
to  both  the  Atlantic  and  Pacific  seaboards  of  the  United  States.  A  ves.sel  would  add  but  314 
miles  to  the  length  of  the  voyage  from  Li\-erpool  to  Colon  by  calling  at  New  York  Citj',  the  port 
having  the  largest  foreign  commerce  of  any  city  in  the  world  (London  excepted)  and  an  export 
traffic  going  in  all  directions.  By  calling  at  the  south  Atlantic  or  Gulf  ports  of  the  United  States, 
the  raw  and  manufactured  cotton,  which  is  exported  in  large  quantities  from  the  United  States 
across  the  Pacitic,  could  be  added  to  the  vessel's  cargo.  A  call  at  San  Francisco,  or  some  other 
west  coast  port  of  the  United  States,  would  enable  the  vessel  to  participate  in  the  grain  and  lum- 
ber trade  from  the  United  States  to  Oriental  countries.  If  the  vessel  making  the  trip  from 
Liverpool  to  Asia  is  .sailed  under  the  American  flag,  it  can  participate  in  the  coasting  trade 
between  the  two  seaboards  of  the  United  States. 

By  consulting  Plate  86,  on  which  the  points  in  Australasia  and  the  East  Indies  equally  distant 
from  Liverpool  are  located,  it  will  be  seen  that  the  line  connecting  the  places  equidistant  from 
Liverpool,  by  waj'  of  the  Nicaragua  and  Suez  routes,  passes  between  New  Zealand  and  Au.stralia, 
runs  ea.st  of  the  main  i.sland  of  Japan,  and  touches  the  continent  of  Asia  on  the  Manchurian  coast 
some  di.stance  north  of  Vladivostok.  As  far  as  distance  alone  is  determinative,  the  commerce  of 
Liverpool  with  Australia  and  the  Far  East  is  tributary  to  the  Suez  route;  but  the  commercial 
factors  other  than  distance  will,  in  all  probability,  so  afl'ect  the  routes  of  trade  as  to  cause  some 
of  the  outbound  and  inbound  trade  of  Liverpool  with  the  East  to  make  use  of  the  westerly  route. 

For  the  purpose  of  showing  the  relative  advantages,  as  far  as  distance  is  concerned,  which 
New  York  and  Liverjwol  will  possess  for  the  Eastern  trade  after  the  Lsthmian  canal  has  been 
completed.  Table  VII  has  been  prepared: " 

Table  VII. — Comparisons  of  distances,  in  nautical  miles,  from  Xeu'  York  and  Liverpool  to  Australasian  and  Asiatic  ports 

via  the  Nicaragua  and  Suez  routes. 


From  New  York  (via  Nicaragua). 

From  Liverpool  (via  Suez) . 

Differ- 
ence— 

To— 

Route. 

Miles. 

Route. 

Miles. 

(Suez,  -; 
Nicara- 
gua. +  ). 

Wellington 

8,716 
9,676 
10,  759 

Aden,  ;>  Colombo,  King  Georgo  Sound,  Mel- 
bourne. 

Aden,  !>  Colombo.  King  George  Sound,  Ade- 
laide, Melbourne. 

12,949 

12,234 

11,151 
9,677 
9,731 
10,  .590 
11,362 

11.640 

4-4,233 

do.  I- 

-1-2,558 

+     392 

Brito.  San  Francisco,  Great  Circle,  Yokohama. 
do 

11,207 
11,047 

-1,630 

-1,316 

..  ..do  ... 

-1-       83 

do 

+    538 

9,4.57 

shanghai. 

+2,183 

a  From  Plate  74  the  figures  may  be  obtained  for  comparing  the  Panama  and  Suez  routes. 

b  Omitting  stop  at  Colombo  will  shorten  voyage  540  miles. 

f  Omitting  stop  at  Tahiti  will  shorten  voyage  52  miles. 

rflf  vessel  goes  by  Wellington  and  Melbourne  voyage  will  be  shortened  232  miles. 


334 


PAX.UIA   C'AXAL   TRAFFIC   AND  TOLLS. 


New  York  will  be  nearer  than  Liverpool  to  New  Zealand  and  the  commercially  important 
half  of  Australia.  Liverpool  by  way  of  the  Suez  route  will  be  nearer  than  New  York  l)y  way 
of  the  Nicaragua  or  Panama  route  to  the  Philippines,  Hongkong,  and  southern  Asia.  Shanghai 
will  be  somewhat  farther  from  New  York  than  from  Liverpool,  the  handicap'of  New  York  by 
way  of  Panama,  San  Francisco,  the  Great  Circle,  and  Yokohama  being  29.5  miles — the  route  from 
Liverpool  by  way  of  the  Suez  including  a  call  at  Colombo,  Singapore  and  Hongkong.  If  the 
call  at  San  Francisco  be  omitted  the  New  York-Panama  distance  is  shorter  than  the  Liverpool- 
Suez  route.  Noithern  China,  Manchuria,  and  Japan  will  be  considerably  nearer  New  York 
than  to  Liverpool. 

Plate  S(>  shows  that  the  line  connecting  the  points  equally  distant  from  Liverpool  and  New 
Yorkl)y  the  Suez  and  Nicaragua  routes,  respectively,  runs  through  the  central  part  of  Australia, 
through  the  western  part  of  New  Guinea,  east  of  the  Philippine  Islands,  and  touches  the  main- 
land of  Asia  a  little  north  of  Shanghai. 

The  foregoing  seven  tables  ha^  e  shown  the  effect  which  a  Nicaragua  canal  would  have  upon 
the  ocean  distances  from  our  eastern  seaboard  to  the  Pacific  countries  of  America,  Australia, 
and  Asia.  These  tables  have  also  shown  the  manner  in  which  the  comparative  distances  from 
our  eastern  seaboard  and  from  Europe  would  be  modified  by  a  Nicaragua  canal.  In  Table  VJII 
the  Nicaragua  and  Panama  Canal  routes  are  contrasted,  and  the  distances  from  typical  Atlantic 
and  Gulf  ports  of  the  United  States,  and  from  representative  Eui'opean  cities  to  the  western 
coast  of  the  American  continents  and  to  trans-Pacitic  countries,  by  way  of  each  canal  route,  are 
given : 

Table  VIII. — Comparison  of  dlslaiices,  in  nautical  miles,  from  American  and  European  Atlantic  imrtsto  Pacific  ports  via 

the  Nicaragua  and  Panama  canals. 


From — 

Via- 

To  Port 
Towns- 
end  via 
San  Fran- 
cisco. 

To  San 
Fran- 
cisco. 

To  Guay- 
aquil. 

To  Cal- 
lao. 

To  Iqui- 
que. 

To  Val- 
paraiso. 

ToCoro- 
nel. 

New  York 

fXicaragua 

5,696 
6,074 
5.485 
5,872 
5,276 
5,673 
4,763 
5,328 
4,893 
5,477 
4,996 
5,  .574 
8,426 
8,813 
8,943 
9,242 
8,664 
8,963 
8,414 
8,713 
8,148 
8,447 

4,921 
5,299 
4,710 
5,097 
4,601 
4,898 
3,978 
4,533 
4,118 
4,698 
4,221 
4,799 
7,651 
8,038 
8,168 
8,467 
7,889 
8,188 
7,639 
7,938 
7,373 
7,672 

3,246 
2,864 
3,035 
2,662 
2,826 
2,463 
2,303 
2,098 
2,443 
2,263 
2,546 
2,364 
5,975 
5,603 
6,493 
6,032 
6,214 
5,753 
6,964 
5,503 
5,698 
5,237 

3,751 
3,359 
3,540 
3,157 
3,331 
2,958 
2,808 
2,693 
2,948 
2,758 
3,051 
2,858 
6,481 
6,098 
6,998 
6,527 
6,719 
6,248 
6,469 
5,998 
6,203 
5,723 

4,393 
4,021 
4,182 
3,819 
3,973 
3,638 
3,450 
3,255 
3,  .590 
3,420 
3,693 
3,520 
7,123 
6,760 
7,  WO 
7,189 
7,361 
6,910 
7,111 
6,660 
6,845 
6,394 

4,928 
4,630 
4,767 
4,428 
4,558 
4,229 
4,035 
3,864 
4,175 
4,029 
4,278 
4,129 
7,708 
7,369 
8, '225 
7.798 
7,946 
7,519 
7,696 
7,269 
7,430 
7,003 

5,161 
4,838 
4,950 

f  Nicaragua 

4,636 
4,741 
4,437 
4,218 

Charteston 

f  Nicaragua 

/Nicaragua 

f  Nicaragua 

4;358 

4,461 
4,338 
7,891 
7,677 
8,408 
8,006 
8,129 
7,727 
7,879 
7,477 
7,613 
7,211 

Galveston 

(Nicaragua 

Liverpool 

i  Nicaragua 

\Panama 

Hamburg 

(Nicaragua 

Antwerp 

Bordeaux  

Gibraltar 

(Nicaragua 

(Panama 

(Nicaragua 

(Panama 

(Nicaragua 

IPanama 

Table  VIII. — Comparison  of  distances,  in  nautical  miles,  from  American  and  European  Atlantic  ports  to  Pacific  ports  ria 

the  Xicaragua  and  Panama  canals. 


..r       -1-    1  (Nicaragua  . 

Ncw-iork (Panamli.... 

Norfolk jlSS^l: 

Charleston {S?S^^: 

Port  Tampa lSZ?ir: 


New  Orleans  ' '  Nicaragua  . 

-^  ew  uneaus I  Panama. . . . 

Galveston  I/Nicaragua  . 

Galveston (Panama.... 

Liverpool ^^:i^r.:. 

Hamburg 1^3!^! 

^t-^n> is^^sr.: 

Bordeaux  I  (Nicaragua. 

Horaeaux (Panama.... 

Gibraltar IS!^!^?"'' ■ 


Tn  -i-ntn      To  Shang- !  To  Manila 
hama  v?a  '"''  ^ia  San     via  San 
Sf^Ssin^    Franciscoa  Franciscoo 
^^=^       and  Yoka-   and  Yoko- 
'^'^'^°-       ,      hama.     i      hama. 


9,457 


(Panama. 


12,208 


10,507 
10,8So 
10,296 
10,6«4 

9,957 
10,  367 

9,564 
10,119 

9,704 
10,284 

9,887 
10,385 
13,237 
13, 624 
13,754 
14,0.53 
13,  475 
13, 774 
13,225 
13, 524 
12, 959 
13,268 


11, 207 
11,585 
10. 997 
11,384 
10,  .505 
10,809 
10,264 
10, 819 
10. 404 
10,984 
10.587 
11,086 
13,937 
14,324 
14, 4.54 
14,  7.53 
14, 175 
14,474 
13.925 
14,224 
13.659 
13.958 


To  Wel- 

To  Sydney  I "o"^"?"-"    "Dgto" 
iHaTa>,ito  h'     laniiac  ^^ 

and  Syd- 

nev. 


aTahita.b 


Tahita.d 


9,676 
9,8.52 
9,466 
9.6.50 
9,250 
9. 451 
8.733 
9. 086 
8, 873 
9, 251 
9, 0.';6 
9, 3.52 
12,406 
12,  .591 
12,  923 
13,020 
12,644 
12, 741 
12,394 
12,  491 
12,128 
12,225 


10,2.51 
10,427 
10,041 
9,868 
9,831 
10,006 
9,308 
9,661 
9,448 
9,826 
9.631 
9,927 
12,981 
13, 166 
13,498 
13, 695 
13,219 
13, 316 
12,969 
13,066 
12, 703 
12,800 


8,716 
8,892 
8,505 
8,690 
8,2% 
8,491 
7.773 
8,126 
7,913 
8,291 
8, 016  , 
8,392 
11,446 
11,631 
11,963 
12,060 
11,684 
11, 781 
U,434 
U,471 
11,168 
11,265 


a  Via  Honolulu  add  374  miles  for  Nicaragua  and  2-52  for  Panama. 

b  Omitting  Tahiti  reduces  voyage  from  Brito  by  52  miles. 

c  Voyage  from  Brito  to  Sydney  by  way  of  Wellington  is  232  miles  less  than  by  way  of  Tahiti;  from  Panama  it  is  405  miles  less. 

dVoyage  from  Brito  to  Wellington  direct  is  185  miles  shorter  than  via  Tahiti,  and  from  Panama  it  Is  358  miles  shorter. 


PAKiiiA  ca:nal  traffic  and  tolls. 


335 


Table  VIII  shows  very  clearly  that  the  Panama  route  is  the  more  advantageous  for  the  west 
South  American  trade,  both  with  Europe  and  the  United  States.  For  the  commerce  of  Eui'ope 
and  the  United  States  with  every  other  Pacitic  country,  with  the  exception  of  New  Zeahind,  to 
which  the  distances  are  practically  equal,  the  Nicaragua  is  shorter  than  the  Panama  route.  If 
the  call  be  made  at  Tahiti  on  the  voyage  between  Wellington  and  the  American  Isthmus,  the 
Nicaragua  route  is  somewhat  shorter  than  the  one  across  Panama  for  the  trade  of  North  Atlantic 
countries  with  New  Zealand.  If  this  voyage  be  made  without  the  call  at  Tahiti,  distance  by  way 
of  the  two  canal  routes  is  practically  the  same. 

For  convenience  of  comparison,  the  following  brief  table  is  serviceable.  The  distances  from 
New  York,  New  Orleans,  and  Liverpool  by  waj-  of  the  Nicaragua  and  Panama  Canal  routes  to 
San  F'rancisco,  Yokohama,  Hongkong,  Sydney,  Wellington,  and  Iquique  are  shown: 


San  Francisco 

Yokohama 

Hongkong 

Sydney  via  Tahiti 

Wellington  Tia  Tahiti 
Iquique 


Nicaragua.    Panama, 


4.921 
9,  -1.W 

11, see 

9,676 
8,716 
4,393 


5,299 
9,835 
11,744 
9,852 


New  Orleans. 


Nicaragua.    Panama. 


4,118 
8,654 
10,563 
8,873 
7,913 
3,590 


9,234 
11,143 
9,251 
8,291 
3,420 


Nicaragua.    Panama. 


12, 187 
14,096 
12,406 
11,446 


12, 574 
14,483 
12, 591 
11,631 
6,670 


Chapter  XVIII. 

CARGO  TONNAGE  OF  THE  EXISTING  MARITIME    COMMERCE    THAT    MIGHT  USE  AN 
ISTHMIAN  CANAL,    1898-99. 

The  attempt  i.s  made  in  the  following  chapters  to  mea.sure,  with  all  possible  accuracy,  the 
imount  of  the  ocean  shipping-  and  commerce  which  would  use  the  isthmian  waterway  at  the 
present  time,  if  the  route  were  in  existence.  The  latest  statistics"  of  ocean  shipping-,  and  of 
the  commodity  traffic  of  which  maritime  commerce  is  composed,  have  been  carefully  examined 
md  are  analytically  set  forth  in  these  chapters,  for  the  purpose  of  determining  the  volume  of 
the  traffic  reservoir  from  which  the  commerce  of  the  canal  would  be  drawn. 

The  results  of  three  distinct  statistical  investigations  are  here  presented,  two  of  which  were 
made  by  the  Isthmian  Canal  Commission  and  one  by  the  New  Panama  Canal  Company.  The 
investigations  having  been  made  without  reference  to  each  other,  afford  an  exceptional  opportu- 
nity for  a  comparison  of  results  obtained  by  different  methods,  and  for  testing  the  accurac_v  of 
the  conclusions  reached  by  the  several  inquiries. 

One  of  the  two  studies  made  by  the  Isthmian  Canal  Commission  examined  the  statistics  of  the 
imports  and  exports  of  our  own  country,  and  those  of  several  European  countries,  for  the  purpose 
of  determining  how  many  tons  of  cargo  or  how  much  freight  the  ti'ade  of  those  countries  might 
have  contributed  to  the  traffic  through  an  American  interoceanic  canal  in  1899.  The  investigation, 
the  results  of  which  are  presented  in  this  chapter,  has  gone  fully  into  every  essential  detail  concern- 
ing which  information  was  obtainable;  and  in  the  comparatively  limited  field  where  estimates 
were  unavoidable,  because  of  insufficient  ofEcial  data,  the  figures  have  been  subjected  to  sucli 
critical  tests  as  were  applicable. 

The  other  statistical  investigation,  conducted  by  the  Isthmian  Canal  Commission,  was  made  for 
the  purpose  of  finding-  out  the  tonnage  of  the  vessels  which  would  pass  through  the  canal  if  it 
were  now  in  existence.  This  inquiry  involved  a  studj^  of  the  statistics  kept  )\y  the  leading  com- 
mercial nations,  of  the  entrances  and  clearances  of  the  vessels  now  engaged  in  the  commerce, 
between  the  ports  so  situated  that  their  maritime  trade  might  have  made  use  of  an  intei'oceanic 
canal.  The  third  investigation,  described  in  the  following  chapters,  is  the  one  made  by  the  New 
Panama  Canal  Company  to  ascertain  the  tonnage  of  the  vessels,  that  during  recent  years  have  been 
engaged  in  commerce,  that  might  have  passed  through  a  canal  across  the  Isthmus  of  Panama;  the 
New  Panama  Canal  Company  having  courteously  permitted  the  Isthmian  Canal  Commission  to 
present  in  this  report  the  i-esults  of  an  elaborate  stvid}^. 

NATURE    AND    LIMITATIONS    OF   THE    INFORJIATION    AVAILABLE    FROM    OFFICIAL    STATISTICS. 

The  statistics  of  the  internal  commerce  of  the  United  States  and  of  other  countries  oive  the 
volume  of  business  in  tons.  The  traffic  of  the  railways,  rivers,  and  canals,  and  the  productions 
of  our  mines  and  furnaces  are  measured  bv  the  ton  unit,  and  the  same  is  true  of  the  products  of 
our  farms  and  forests  when  in  the  possession  of  the  transportation  agent.  The  statistical  units 
of  weight  most  familiar  to  the  people  of  the  United  States  are  the  short  ton  of  2,000  pounds  and 
the  "long"  ton  of  2,24".  The  long  ton  is  not  employed  so  much  in  this  country  as  it  formerly 
was,  but  in  the  United  Kingdom  the  ton  of  2,2-1:0  pounds  is  still  more  generally  used  than  the 
short  ton.  In  countries  that  have  adopted  the  metric  system  of  weights  and  measures  the  ton 
weighs  2,204  pounds. 

In  the  Government  statistics  of  ocean  commerce  no  record  is  made  of  the  cargo  or  weight 
tonnage  of  the  commodities  carried,  and  the  volume  of  business  done  is  expressed  in  terms  of 
vessel  tonnage.  The  "gross  register  tonnage''  of  a  ship  is  its  capacity  in  cubic  feet  divided  by 
100,  and  its  "net  register  tonnage'' is  determined  b}' dividing  by  100  the  cubic  feet  of  space 
available  in  the  vessel  for  cargo.  Maritime  commercial  statistics  are  usually  given  in  net  regis- 
ter tonnage.  To  those  who  are  directly  concerned  with  maritime  commerce  the  statistics  of 
vessel  tonnage  are  a  readily  understood  index  of  the  volume  of  commodity  traffic;  but  to  many 

"The  latest  statistics  available  at  the  time  the  investigation  was  made. 


P.lNAiLV  CANAL   TRAFFIC   AjSTD   TOLLS.  337 

if  not  most  men  euguo-ed  in  industrial  pursuits  the  cargo  ton  of  :2,000  or  2,240  pounds  is  the 
customary  unit  emplo3-ed  in  measuring  the  volume  of  trade,  and  figures  of  net  tonnage  have 
little  significance  until  they  have  been  converted  into  tons  of  weight. 

It  was  believed  that  a  statement  of  the  cargo  tonnage  or  the  auiount  of  fi'eight  that  would 
make  use  of  an  isthmian  canal,  if  it-were  now  in  existence,  would  be  of  value  for  several  reasons. 
The  business  world  being  accustomed  to  consider  the  amount  of  traflic  in  terms  of  the  cargo  ton, 
a  statement  in  that  unit  of  the  volume  of  available  canal  traflic  would,  it  was  thought,  convey 
definite  information  that  would  be  readily  comprehended  without  being  translated.  The  statistics 
of  the  cargo  tonnage  of  ocean  commerce  permit  comparisons  to  be  made  with  the  statistics  of 
internal  traflic,  while  statements  of  vessel  tonnage  do  not.  The  saving  in  freight  rates,  further- 
more, that  the  opening  of  an  isthmian  cannl  would  make  possible  can  be  more  intelligently  con- 
sidered by  knowing  the  volume  of  cargo  freight  that  would  now  use  the  waterway.  Ocean  rates, 
like  railwav  freight  charges,  are  levied  on  the  cargo  ton  of  weight  or  measurement,  but  unlike 
the  statistics  of  railway  traflic,  those  of  maritime  commerce  give  no  data  regarding  freight  tonnage. 

The  United  States  Bureau  of  Statistics,  now  in  the  Department  of  Commerce  and  Labor, 
collects  the  statistics  of  our  foreign  trade,  and  in  its  monthly  and  annual  publications  gives  the 
value  of  imports  and  exports  l)y  classes  of  commodities  and  by  ports.  Tables  are  also  published 
giving  the  values  and,  in  many  cases,  the  quantities  of  the  commodities  exported  from  each  port 
to  foreign  countries  as  a  whole;  similarl}-,  the  values  and  usually  the  quantities  of  the  imports 
entering  our  several  ports  from  foreign  countries,  taken  collectively,  are  given.  Though  these 
tables  are  elaborate  and  of  great  value,  they  do  not  give  the  amount  of  trade  by  articles  and 
quantities  carried  on  between  our  several  ports  and  the  countries  with  which  we  exchange 
commodities. 

It  is  not  po.ssible  to  obtain  the  actual  cargo  tonnage  of  the  total  foreign  trade  of  the  United 
States  directly  from  our  oflicial  statistics,  because  the  published  tables  seldom  give  the  weights 
of  the  commodities,  frequently  do  not  state  the  quantities,  and  in  no  instance  is  the  ocean  freight 
tonnage  stated.     This  is  equallv  true  of  the  commercial  statistics  compiled  by  foreign  countries. 

It  is  likewise  impossible  to  ascertain  from  the  published  tables  the  kinds  and  quantities  of 
commodities  that  constitute  the  trade  carried  on  through  and  by  our  several  ports  with  difl^ereut 
countries.  Our  published  statistics  indicate  the  foreign  trade  carried  on  at  each  port  of  the 
L^nited  States;  and  the  distribution  of  our  entire  trade  among"the  several  countries  is  shown,  but 
it  is  in  the  form  of  total  values.  The  Bureau  of  Statistics  possesses  the  data  necessary  for  this 
analytical  presentation,  by  articles,  of  the  trade  of  our  respective  ports  with  each  foreign  country, 
but  the  tables  which  such  a  presentation  would  requii-e  would  be  so  voluminous  as  to  make  their 
publication  for  all  ports  impracticable.  A  table  would  need  to  be  constructed  for  each  port  or 
customs  district,  showing  its  trade  with  each  foreign  country  in  each  article  or  class  of  articles 
imported  and  exported.  There  are  at  the  present  time  more  than  50  maritime  customs  districts, 
trading  more  or  less  with  92  foreign  countries,  by  exchanging  some  or  all  of  the  661  articles  in 
the  classified  list  of  the  commodities. 

Not  being  able  to  olitain  from  the  published  tables  the  data  necessary  for  the  calculation  of 
the  cargo  tonnage  of  our  ocean  conmierce  that  would  now  make  use  of  an  isthmian  waterway,  the 
resort  was  had  to  the  unpublished  folios,  access  to  which  was  courteously  given  by  the  United 
States  Bureau  of  Statistics.  The  facts  concerning  the  trade  of  each  port  were  copied  from  these 
folios,  and  two  sets  of  tables  were  constructed,  one  for  the  Pacific  ports  of  the  United  States  and 
one  for  the  Atlantic.  The  tables  constructed  for  th(>  Pacific  ports  showed  for  each  port  the  values 
and,  when  obtainable,  the  quantities  of  each  class  of  articles  imported  and  exported  in  the  trade 
carried  on  with  each  foreign  country  on  the  Atlantic.  Similar  tables  were  made,  giving  the  trade 
of  each  Atlantic  port  v.ith  each  Pacific  country. 

Having  secured  the  mass  of  data  contained  in  these  compilations,  the  work  of  converting 
quantities  and  values  of  commodities  into  their  cargo  tonnage  equivalents  was  begun,  and  the 
results  of  the  calculations  were  four  comparatively  small  tables  giving  the  values  and  the  cargo 
tonnage  of  the  imports  and  exports  composing  the  trade  which  our  Pacific  ports  had  with  the 
Atlantic  countries  in  1898-99,  and  which  our  Atlantic  ports  had  with  Pacific  countries  the  same 
year.  These  four  tables  give  the  \'alue  and  the  cargo  tonnage  of  the  maritime  foreign  commerce 
of  the  United  States,  which  might  have  used  the  isthmian  canal  had  it  been  in  existence  dui'ing  the 
year  ending  June  .30,  1899. 

The  discussion  of  methods  as  well  as  results  can  be  given  more  advantageously  with  the  tables 
in  hand.  The  four  tables  present  (1)  the  value  and  cargo  tonnage  of  the  imports  into  each  of 
our  Atlantic  ports  from  the  Pacific  foreign  countries  traded  with;  (2)  the  exports  from  each 
Atlantic  port  to  those  countries;  (3)  the  value  and  cargo  tonnage  of  the  imports  into  each  Pacific 
port  from  each  Atlantic  foreign  country  dealt  with,  and  (4)  the  value  and  cargo  tonnage  of  the 
exports  from  each  of  our  Pacific  ports  to  each  Atlantic  country  to  which  commodities  were  sent. 
Table  V  is  inserted  in  a  later  connection,  where  the  totals  of  the  first  four  tables  are  discussed. 


338  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

I. — Atlantic  coaM  imports  from  foreign  Pacific  countries,  values  and  cargo  torn,  year  ending  June  30,  1S99. 


Customs  districtJi. 

Chile. 

Ecuador  and 
Peru. 

Salvador 
and  British 
Columbia. 

Hawaii. 

Baltimore 

rvalue.. 

\tons  . . . 

lvalue.. 

870,393 
4,204.1 

. 



\tons... 

Boston  and  Charlcstown 

fvalue. . 
Itons ... 

lvalue.. 
ttons... 

/value.. 

S61. 040 
14,  .520 
801.340 
3,a21.9 
893,308 
3,413.9 
8101,701 
8, 479. 2 

('$70,307 
a  3, 140 

8.1 

Bridgeton 

ttons... 

lvalue.. 

Itons... 

lvalue.. 

825,000 

fvalue.. 

lvalue.. 

New  York 

fvalue.. 

1  tons . . . 

(value.. 

82, 245,  .=.33 

103, 490. 3 

811,723 

879.4 

82, 301, 984 
29,140.3 

!>  8296, 693 
2,107.2 

87,9.54,770 

95,866.4 

Itons... 

Perth  Amboy 



8109,542 
15,547.0 

.. 

$463,672 

itons  ... 

/value.. 

5,486.6 
830O 



/value.. 



Richmond 

/value.. 

835,295 
1,304.7 

Itons  ... 

(value.. 

Wilmington,  X.  C 

Galveston 



1 ( 

Key  West 

'...                                              1 

1 

Mobile 

/value.. 

843,240 

Pearl  River 

/value.. 

:::::::;:;:;:  :::::::::  ■ 

Pensaeola ; 

■ 

Tampa 

I 

Saluria 

(value.. 
Iton^  ... 

Total 

82,796,475 
155,821.1 

82.372,291 
32,280.3 

$296,693 
2,107.2 

88,486,987 
102,410.5 

Customs  districts. 


British  Aus- 
tralia and 
Auckland. 


Hongkong. 


Baltimore 

Beaufort,  S.  C 

Boston  and  Charlestown 

Bridgeton 

Charleston,  S.  C 

Delaware 

Georgetown,  D.  C 

Hartford 

Newark 

New  York 

Norfolk  and  Portsmouth 

Perth  Ambo  J" 

Philadelphia 

Portsmouth  and  Falmouth 

1  Peru, 


/value . 
Itons  .. 
jvalue. 
Itons  .. 
jvalue. 


\tons  . . . 
fvalue  - . 
ttons  ... 
[value.. 
Itons  . . . 
/value., 
(tons  ... 
/value.. 
Itons  ... 
fvalue  - . 
\tons  . . . 
lvalue.. 
Vons  ... 
fvalue.. 
[tons  ... 
lvalue.. 
"Itons  ... 
lvalue., 
ttons  . . . 
fvalue.. 
Itons  ... 
/value., 
ttons  . . . 


S133. 828 

116.  f> 

83,072,191 


85,921 
77.8 
S234 


%\,  424 

20.2 

11,437.966 

15.070.4 


&  British  Columbia,  $14,168. 


P.AJ^A]MA  C'^mAL  TRAFFIC   AND   TOLLS.  339 

I. — Atlantic  coast  imports  from  foreign  Pacific  countries,  values  and  cargo  ton^%  year  ending  June  SO,  1S99. 


Customs  districts. 


British  Aus- 
I    traiia  and 
Auckland.   \ 


Providence 

Richmond 

Savannah  

Wilmington,  N.  C 

Galveston  

Key  West 

Mobile 

New  Orleans 

Pearl  Eiver 

Pensacola 

Tampa , 

Saluria 

Total 


f  value., 
■[tons  ... 
(value., 
ttons  ... 
(value.. 
Itons  ... 
(value., 
(tons  ... 


J  value. 
Itons  . . 


rvalue. 
Itons  .. 
lvalue. 
Itons  .. 
(value, 
(tons  .. 
(value, 
ttons  . . 


(value., 
ttons  ... 


87,480,024 
118,892.3 


Customs  districts. 

Baltimore 

Beaufort,  S.  C 

Boston  and  Charlestown 

Bridgeton  

Charleston,  S.  C 

Delaware 

Georgeto^vn,  D.  C 

Hartford 

Newark 

New  York 

Norfolk  and  Portsmouth 

Perth  .\mboy 

Philadelphia 

Portsmouth  and  Falmouth 

Providence  

Richmond 

Savannah  

Wilmington,  N.  C 

Galveston 

Key  West 

Mobile 

New  Orleans 

Pearl  River 

Pensacola 

Tampa 

Saluria 

Total 


(value. 

ttons .. 

(value. 

ttons .. 

(value.. 

ttons... 

I  value. - 

ttons... 

(value. - 

ttons . . . 

lvalue.. 

ttons... 

(value.. 

ttons  ... 

(value.. 

ttons ... 

(value.. 

lions... 

(value.. 

ttons... 

lvalue  . 

ttons... 

lvalue.. 

ttons... 

jvalue.. 

Itons  ... 

(value.. 

ttons ... 

lvalue.. 

ttons  ... 

(value.. 

ttons... 

(value.. 

ttons  ... 

(value..  [. 

ttons  .... 

(value.. . 

ttons...  . 

(value..'. 

ttons  . . .  j . 

/value..  . 

Itons.. 

lvalue. 

ttons . . 

(value. 

ttons  .. 

(value. 

ttons.. 

(value. 

itons  . . 
value, 
tons  .. 

/value, 
ttons  . . 


Total  Hong- 
kong and 
Philippines. 


5190, 215 
13,602.9 


$850,578 
18,216.7 


81,424 

20.2 

S4, 538, 451 

56,538.9 


$835,460 

22, 619. 3 

$61, 340 

3,921.9 

S106, 936 

3,764.8 

$101,701 

8,479.2 

$29,325 

609.1 

$6, 383 

86.3 

8134,062 

121.2 

$31,461,308 

455, 437. 9 

$11,723 

879.4 


$914,626 

25, 852 
5300 


$35, 295 

1,364.7 

$200 


$400, 287 
20, 398. 6 


81, 9-28, 330 

47, 954.  3 

$61, 340 

3,921.9 

$106,936 

3,764.8 

8101,701 

8, 479. 2 

$29,325 

609.1 

$6,711 

88.8 

$135, 486 

141.4 

$35,999,789 

511,971.8 

$11,  723 

879.4 


81, 145, 724 

29,522.6 

SS'X) 


$35, 295 

1,364.7 

$200 


340  PAN.VMA  C'AN.VL   TRAFFIC   AND   TOLLS. 

II. — Atlantic  coast  exports  to  foreign  Pacific  countries,  values  and  cargo  tons,  year  ending  June  30,  1899. 


Customs  districts. 

Chile. 

Bolivia, 
Ecuador, 
and  Peru. 

Salvador 
and  British 
Columbia. 

Hawaii. 

British  Aus- 
tralia and 
Auckland. 

$6,000 
3,000 

$33,248 
12, 335 

$524,099 
20, 691 

Baltimore •jj'n^  " 

Beaufort,  P.  C {tons;:: 

Bridgeton jton-s." 

Charleston Itons'^" 

rvalue 

Delaware ■(  tons 

..    . 

Georgetown,  D.  C itons 

fvnliiA 

Hartford {tons     : 

Newark l^'^f- 

New  York : {tons!:: 

31,984,661 

44,480.7 

S6.638 

3,250 

"81,936,464 

n 27, 802. 4 

f$7,700 

c4,400 

6 $282, 072 
6  6,339.3 

$659,387 
12.359.5 
$16,813 

8,407 
$24,420 
2,267.5 
$5,400 

452.7 

$15,866,902 
337, 017. 1 

Philadelphia j^'^e.. 

S3,8H8 
2, 350 

fvnliifi 

Providence {ton" 

. 

1 i 

Richmond {tonf": 

I 

$68,242 

Savannah {tons." 

11,214 

Wilmington -jj^j,,   ■• 

Galveston Itons!:: 

Key  West \tons^:: 

Mobile {Jo"ns^"' 

ii$22,631 

d  3, 485. 4 

<-S6,626 

C997.5 

Peari  River {tons!" 

$11,150 

$23, 304 

Tampa {tons." 

Total {j;^-:: 

?2, 001, 187 
63,080.7 

81,972,250 
36,685.3 

$282,072 
6,339.3 

$739,268 
35,821.7 

$16, 582, 105 
374,763.7 

Customs  districts. 

China  and 
Hongkong. 

Japan. 

Asiatic  Rus- 
sia and 
Korea. 

French  and 
German 
Oceania. 

Baltimore 

Beaufort,  S.  C 

Boston  and  Charlestown 

Charleston 

Georgetown,  D.  C 

Hartford 

Newark  

Norfolk  and  Port.<imouth 

(tons  ... 

$30,416 
11,739 

1 

lvalue.. 



:":::"::::: :::: 

$185 

2.5 

$4,841,684 

170,  866.  7 

Jvalue.. 

Itons  ... 

/value . . 

<!Ji2, 073,176 
<■  301,  835. 5 

$807,935 
8,954.3 

$17,763 
993.3 

1,000 

$348 

8 

$970, 369 

80,650.3 

fVBhlP  _  _ 

fvnlnp. 

S628, 048 
4,220.8 

Philadelphia |t„--;; 

Itons  ... 

a  Bolivia  and  Ecuador,  value,  $806,592;  tons,  12,051.8. 
6 New  York  to  British  Columbia,  value,  $4,144;  tons.  05.8. 

c  Norfolk  and  Portsmouth  to  Peru,  value,  $7,700;  tons,  4,400.    Pensacoia  to  Peru,  value,  $5,525;  tons,  997.5. 
d  Pearl  River  toBolivia  and  Ecuador,  value,  $22,031;  tons,  3,485.4. 

*0f  this  total,  Hongkong's  share  was  $1,775,634  and  105,704.7  tons  of  cargo.    New  York  was  the  only  customs  districts  of  the  Eastern 
seaboard  that  exported  to  Hongkong  in  1899. 


PANAMA  CANAL  TKAFFIC   ANT)  TOLLS. 


341 


ll.—Allantic  c«o.s-(  exports  to  foreign  Pacific  countries,  values  and  cargo  lorn,  year  ending  June  SO,  i599— Continued. 


Customs  districts. 


Customs  districts. 


Beauiort,  S.  C 

Boston  and  Charlestown  . 

Bridgeton 

Charleston 


Georgetown,  D.  C. 


New  Yorli 

Norfolk  and  Portsmoutli  , 

Perth  Amboy 

Philadelphia 

Portland  and  Falmouth . 

Providence 

Richmond 

Savannah  

Wilmington 


New  Orleans. 


f  value . 
■\tons  . . 

i  value . 
tons  . . 
value, 
tons  .. 
value . 
tons  .  - 
value, 
tons .. 
(value . 
"Itons  .. 
(value. 
■\tons  .. 
lvalue. 
•Itons.. 
(value. 
■■\tons  .. 
(value, 
"itons  .. 
(value. 
■  "Itons  .. 


China  and 
Hongkong. 


Asiatic  Kus- 
sia  and 
Korea. 


$M0,971 
11,902 
873, 860 


French  and 
German 
Oceania, 


S8, 400  ; 

2,100 

$23,574 

3,929 


$807,935 
8,951.3 


(value, 
"ttons.. 

(value, 
"(tons .. 

(value. 
"\ton3.. 

)  value. 
'  (tons.. 

(value, 
"(tons.. 

lvalue, 
"(tons .. 

(value. 
■\tons.. 

Jvalue. 
■"  lions.. 

Jvalue. 
■ "  (tons . . 

lvalue, 
"(tons.. 

lvalue. 
■"Itons... 

lvalue.. 
•"\tons... 

lvalue., 
"'lions... 

lvalue.. 
•"(Ions... 

[value., 
""(tons ... 

(value., 
""(tons... 

lvalue.. 

itons . . . 
value., 
tons, . . 

lvalue., 
""itons... 

lvalue.. 
""Itons... 

(value., 
""(tons... 

lvalue., 
""(tons.. 

(value. 
""\tons.. 

(value, 
""ttons.. 

(value. 


Total  Hong- 
kong and 
Philippines. 


8663,347 
36,026 
830, 415 
11,739 


SlSo 

2.5 

$36, 693, 340 

804,934.1 

$41,151 

17,0.57 

$24,768 

2,275.5 

81,607,705 

87,673.8 


$593, 037 
49, 177. 6 
830, 416 
11,739 
SS9,408 
835.2 


8185 

2.5 

838, 553, 289 

912,627.7 

811i;487 

47,752 

$24, 768 

2,275.6 

$1,607,705 

87,673.8 


(tons 


$440,  971 

11,902 

873, SCO 

7,386 

828,187 

854.3 

8444, 696 

12, 097. 2 

$22,631 

3,485.4 

825, 075 

4,219.9 

$16,878 

7,813 


$440, 971 

11,902 

$73, 860 

7,386 

$28, 187 

8.54.3 

8441,696 

1J,097.2 

S22,  631 

3, 485. 4 

$25,075 

4,219.9 

$46,878 

7,813 


Total,  plus  873  tons  of  miscellaneous/orai?;!  exports  not  included- in  the  table,  1,172,928.1  tons. 
34998°— 12 23 


342  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

III. — Pacific  coast  imports  from  foreign  Atlantic  countries,  values  and  cargo  tons,  year  ending  June  30,  1899. 


Customs  districts. 

Austria- 
Hungary. 

Belgium. 

Denmark 

France. 

Germany. 

Italy. 

Nether- 
lands. 

Los  Angeles 

value., 
tons  . . . 
value . . 

81,742 
65.8 

S28, 559- 
2,908.1 
$12, 352 
1,678.1 
$41,917 
5,542.4 

$10,580 
112.4 

$76,348 
3,910.1 

-$574 
1 

$2,193 

^•alue.. 
tons  . . . 
value . . 

S2 
0.1 

$81 
1.6 

$1,444 

7.3 

869 

3 

$678,731 

7,815 

$2,555 

19.5 

$10,331 
148.2 
$42, 929 
2,852.3 
$880,382 
41,988.9 
$47,604 
5, 085.  6 

$19 
0.8 

892 

1 

San  Francisfo                                                                               J 

value.. 

$885,502 
45,946.9 
$124,900 
11,583.8 

$188, 650 
3,646.4 
$39, 503 
2,107.2 

Willamette 

value . . 
tons  ... 

Total 

?1,744 
65.9 

$1,093,290 
67,659.3 

$81 
1.6 

$693, 379 
7,9.57.2 

$1,057,594 
53,985.1 

$228,  740 
5,755.4 

$2,385 
22.  S 

Customs  districts. 

Sweden 

and 
Norway. 

Switzer-       United 
land.       Kingdom. 

East     . 
Canada. 

West 
Indies. 

Braiil. 

Total. 

Los  .\ngeles 

value., 
tons  . . . 

$1,377 

7.5 

$1,080           $74,322 

$100 
3 

830 

$197, 015 

3 

6,838.6 

$716 

79.3 

$26,860 

1,891.1 

$89,588 

12, 293. 5 

$1,806,609 

137, 236. 3 

$131,697 

6, 482. 1 

13, 870. 8 
$13,068 

Oregon,  Oreg 

p         „        ,                                                                      J 

value.. 

$46 
2 

$68 
2.G 

$80,860 

7,597.1 
$132,586 

„      n'     n                                                                           J 

value.. 

16, 148. 8 
$4,657,028 

„      _        .                                                                     1 

value . . 



$213,604 
310.5 

$3,650 
12.1 

236,456.1 
$354,446 
25, 499. 6 

Willamette 

value., 
tons  ... 

value.. 

$6,994 
179.5 

$176 
7 

$957 
34.9 

Total 

88,371 
187 

$1,302 
12 

$2,129,702 
164,820.9 

$1,125 
40.5 

$213,634 
310.5 

$3,650 
12.1 

$.5,435,003 
300, 829. 2 

IV. — Pacific  coast  exjjorts  to  foreign  Allanlic  countries,  values  and  cargo  tons,  year  ending  June  SO,  1S99. 


Customs  districts. 

United 
Kingdom. 

Germany. 

Belgium. 

Italy, 
Switzerland. 

Oregon,  Oreg 

(value.. 
Itons... 

/value.. 
(tons... 

rvalue.. 
"(tons  . . . 

lvalue.. 
ttons . . . 

/value.. 
■  ■  ■ ItOQS  . . . 

$92,  324 
1,612 
$2,815,647 
124,183.8 
$6,918,817 
173,084.2 
$6,249,843 
274,689.9 

(1  $10,  200 

95.6 

$28, 000 

Puget  Sound 

$311, 500 
615,483.6 

San  Francisco 

$650 

11 

$17,931 

<-5,184.8 

rt8176 

d6 

Willamette 

$60,000 
!'5,572.7 

Total 

$16,076,631 
573,569.1 

$56,781 
106.6 

$371,500 
21, 056. 3 

$37,516 
5,190.8 

Customs  districts. 

South  Africa. 

Ea.*it  Canada. 

Argentina. 

Total. 

Puget  Sound 

San  Francisco  . .' 

(value.. 
Itons  . . . 

/value.. 

tons  . . . 

value.. 
\tons . . . 

/value.. 
Itons  . . . 

$648,723 
56,519.2 
$346,839 
13,032.3 
$776,767 
32,048.4 

$3,252 
594.8 

$37,693 
12, 497. 6 

$3,539,679 
191,  312.  3 
87,605,530 
209,279 
87,104,717 

Willamette 



Total 

$1,772,329 
101,599.9 

$3,252 
594.8 

837,693 
12,497.6 

.  $18, 352, 450 
714,615.9 

Estimates  of  total  scattering  foreign  exports,  value,  $1,078;  tonnage,  715,693. 

In  constriK'ting  these  tables  the  trans- Atlantic  trade  of  our  Gulf  and  Atlantic  ports  was 
omitted  because  it  would  not  be  tributary  to  the  canal,  and  the  figures  include  only  the  ocean 
foreign  commerce  now  carried  on  by  our  Atlantic  and  Gulf  })orts  with  Pacific  countries,  and 
between  our  Pacific  ports  and  countries  on  the  Atlantic.  In  the  case  of  each  port  named,  only 
that  part  of  its  foreign  trade  is  given  that  might  be  directly  affected  by  the  opening  of  the  canal. 

According  to  the  classification  of  the  United  States  Bureau  of  Statistics,  the  imports  number 
333  classes  and  the  exports  328.     For  each  item  in  this  list  of  661  commodities  the  value  was 


PANAMA  CANAL  TRAFFIC  2VND   TOLLS.  343 

obtainable;  for  some  of  the  classes  the  number  or  quantities  of  articles  were  reported,  and,  for 
manv  commodities,  weights  were  given  in  the  otiicial  statistics.  In  all  cases,  howevar,  the 
^.^:Zu4..-.   „:,.„.,   ^„,.„   .,<^f   ^^^-ovino-  nnlv  the  comnioditv  and  not  the  packing  or     tare     which 


jht  or  value  of  the 

ordinarv\mit  of  each  orthe'many  commodities  considered,  a  lai^gc  amount  of  detailed  informa- 
tion had  to  be  secured  from  business  men  concerning  the  manner  of  shipping  the  various  articles. 
The  difficulties  of  this  and  other  parts  of  the  investio-ations  were  somewhat  complicated  by  the 
fact  that  manv  commodities  of  bulky  .character  are  handled  by  ocean  vessels  as  measurement 
caro-o  40  cubic  feet  being  reckoned  as  a  ton  instead  of  2,240  pounds,  the  weight  ton  commonly 
employed  in  maritime  traffic.  In  determining  the  true  cargo  tonnage  of  goods  shipped  by  the 
measurement  ton  it  was  necessary  to  ascertain  the  cubic  contents,  boxing  included,  ot  some  unit 

of  quantitv.  ^    ,     ,  ,.  i.        •   Ui.     ^    1 

To  reduce  commodity  values  to  weights,  to  find  the  average  tare  tor  net  weights,  to  learn 
whether  shipments  were  made  by  weight  or  measure,  and,  if  by  measure,  to  hnd  the  weight  or 
value  of  a  measurement  ton,  an  extensive  correspt>ndence  was  earned  on  with  men  engaged  in 
forei"-n  trade  Representative  business  men  of  tlu'  leading  commercuil  cities  were  requested  to 
give  the  assistance  needed,  and  by  means  of  persoiuil  interviews  and  a  large  correspondence  a 
mass  of  information  was  secured  covering  the  great  bulk  of  both  our  import  and  export  trade. 
In  order  to  insure  the  greatest  possible  accuracy  for  the  tables  of  cargo  tonnage,  inquiries  regard- 
in"- each  line  of  foreign  trade  have  been  made  of  representative  tirms  ot  several  of  the  large 
seaports,  and  in  some  instances  several  lirms  were  corresponded  with  concerning  each  commodity 
about  which  information  was  required.  .      w,  i-  ^    r  i 

This  correspondence  extended  over  several  montlis  and  required  the  sending  out  ot  several 
thousand  individual  letters;  but  bv  means  of  the  knowledge  obtained  from  the  business  men,  who 
generously  gave  the  time  required  to  leply  to  the  requests  for  information,  it  was  possible  to 
prepare  the  alwve  tables  by  converting,  iteni  by  item,  into  equivalent  cargo  tons,  the  values  ot 
nearlv  all  of  the  articles  that  our  various  ports  would  have  imported  and  exported  by  way  ot 
an  isthmian  canal  during  the  fiscal  year  ending  June  30,  ISin.t.  Although  it  was  not  possible  to 
cret  the  requisite  data  for  converting  every  item,  there  are  but  5.7  per  cent  of  the  imports,  and 
2  4  per  cent  of  exports  included  in  the  above  tables  that  were  not  converted  according  to  the 
method  iust  described.  The  small  quantity  of  imports  and  exports,  for  which  it  was  not  possible 
to  secure  satisfactory  factors  to  use  in  changing  values  to  cargo  tons,  were  converted  by  using 
for  the  multiplier  the  average  ratio  of  values  to  tons.  ,      -i-    ,      .•  ,        r  ■  ^ 

These  residuary  values  and  quantities  consisted  largelv  ot  these  unclassified  articles  ot  import 
and  export.  In  classif  ving  the  multitude  of  commodities  handled  in  international  trade,  it  is 
often  necessarv  to  include  in  the  larger  divisions  of  the  classification  a  group  entitled  All  other. 
For  instance  in  the  general  classification  of  the  exports  of  the  LTnited  btates  the  division  '  Iron 
and  steel  and  manufactures  of  "  contains  42  specific  classes  and  also  such  general  groupings  as 
"  \\l  other  manufactures  of  iron  and  steel,"  "All  other  machinery,"  and  Tools  not  otherwise 
specified  "'  For  converting  the  indefinite  or  unspecified  classes  it  was  necessary  to  assume  that 
the  relation  of  the  values  to  the  cargo  tonnage  was  the  same  a^  it  was  for  the  specified  classes  of 
their  general  division  of  the  classification.  The  value  of  '"AH  other  machinery,  for  example, 
was  converted  by  assuming  that  the  ratio  of  value  to  weight  and  bulk  was  equal  to  the  average 
for  the  11  specified  classes  of  machinerv;  and  it  is  probable  that  the  results  obtained  in  this 
manner  were  nearly  correct.  This  same  method  of  conversion  was  applied  to  the  unspecified 
classes  of  imports.  .  in.n     ,.1  j.     •>  + 

It  was  not  practicable  in  the  case  of  everv  general  grouping  entitled  All  other,  etc^  to 
secure  an  averao-e  ratio  to  use  as  a  factor  for  converting  values  to  tons;  consequently,  a  part  ot 
the  values  compl-ised  within  these  general  groups  was  included  with  the  residuary  quantities  that 
were  dealt  with  according  to  the  method  described  in  the  following  paragraphs: 

After  havino-  converted  the  specified  classes  of  imports  and  exports  and  as  many  as  possible 
of  the  classes  01^ grouping  entitled  '"AH  other"  or  "Not  otherwise  specified,"  it  was  found  that 
9C  per  cent  of  the  total  value  of  the  maritime  foreign  trade  ot  the  United  States  available  tor 
canal  traffic  during  the  fiscal  year  ending  June  30,  1900— in  round  numbers,  i;?lOl,000,000  out  ot 
$105.000,000— had  been  accounted  for.  ,       .    ,  ,      -^    1  •  ^        a 

The  remainino-  4  per  cent  unaccounted  for  consisted  partly  of  the  unclassified  imports  and 
exports— the  o-eneral  residuum  placed  at  the  end  of  the  tables  of  imports  and  exports  published 
by  the  Bureairof  Statistics,  and  designated  "all  other  articles  not  elsewhere  specified  -^and  were 
also  made  up  partly  of  the  commodities  concerning  which  the  Commission  secured  no  mtormation 
in  regard  to  the  relation  of  values  to  cargo  tons.  , -,  ^    -, 

A  classification  of  commodities  could  hardly  be  constructed  that  would  find  an  appropriate 


344  Pjvnama  canal  traffic  and  tolls. 

class  for  every  article  listed  in  the  merchants'  invoice  or  sales  book,  and  a  final  grouping  of  "all 
other  articles  not  elsewhere  specified"  is  practically  necessary  in  making  up  tables  of  imports  and 
exports  such  as  are  published  by  the  United  States  Bureau  of  Statistics.  The  total  value  of  the 
unclassified  commodities  that  had  to  be  dealt  with  in  constructing  the  above  tables  of  cargo  tons 
of  the  traffic  available  for  an  istlnnian  canal  was  small,  and  the  change  from  value  to  tons  was 
made  by  assuming  these  articles  to  have  the  same  average  weight  and  capacity  as  had  equal  values 
of  typical  and  carefully  selected  classified  articles.  The  average  of  these  other  commodities  was 
taken  as  the  standard. 

The  classified  conunodities,  concerning  which  no  information  was  secured  to  assist  in  the  con- 
version of  their  values  into  equivalent  cargo  tonnage,  consisted  to  a  limited  extent  of  shipments 
so  small  in  quantity  as  not  to  justify  an  investigation  of  them,  but  most  of  these  commodities 
M'ere  made  up  of  articles  which  varied  so  much  in  value,  bulk,  and  packing  that  no  reliable 
estimates  regarding  them  could  be  secured  from  shippers. 

Imported  commodities  constituted  the  greater  part — 65  per  cent — of  the  values  that  had  to 
be  converted  by  means  of  general  averages.  This  was  to  be  expected  in  view  of  the  fact  that 
our  exports  consist  so  largely  of  such  articles  as  raw  materials  and  heavy  manufactures  whose 
weight  and  measurement  are  readily  ascertainable,  while  our  imports  contiiin  a  large  variety  of 
manufactures  and  other  articles  whose  weight  and  bulk  are  difiicult  to  deterniine. 

This  fact  is  well  illustrated  by  comparing  the  import  and  export  trade  of  our  Pacific  ports. 
The  exports  from  the  Pacific  ports  were  made  up  so  largely  of  raw  materials  or  food  products 
that  over  99.9  per  cent  could  be  converted  from  values  and  quantities  to  tons.  On  the  contrary, 
in  the  case  of  the  imports  from  Europe  to  the  Pacific  coast — a  rich  agricultural  .section  with  but 
little  manufacturing  activitj' — data  could  be  secured  to  convert  onh^  ^(8  per  cent  of  the  total. 
The  amount  of  these  imports,  however,  is  small,  and  the  necessitj'  of  converting  12  per  cent  of 
their  total  value  bj^  indirect  methods  was  consequently  not  a  serious  matter.  Ninety-five  per 
cent  of  the  Atlantic  imports  from  the  Pacific  was  directly  converted,  and  for  the  Atlantic  exports 
to  the  Pacific  the  percentage  was  96.5  per  cent. 

The  commodities  for  which  no  specified  data  could  be  secured — $4,000,000  worth — were  con- 
verted by  means  of  general  averages,  obtained  in  the  manner  described  below.  The  imports  and 
exports  of  the  Atlantic  and  Pacific  seaboards  were  converted  by  using  diflerent  factors  because 
of  the  diverse  characteristics  of  the  trade  of  the  two  coasts. 

For  all  the  exports  of  the  Pacific  coast,  except  a  few  from  San  Francisco,  factors  were  obtained 
for  the  direct  conversion  of  each  conmio'dity  from  values  to  tons,  and  the  San  Francisco  exports 
not  otherwise  accounted  for  were  assumed  to  average  the  same  as  the  other  exports  from  that  city 
to  Europe. 

Twelve  per  cent  of  the  imports  to  the  Pacific  coast  from  Atlantic  countries  had  to  lie  converted 
by  securing  an  acceptable  average  ratio  of  values  to  tons.  More  than  25  per  cent  of  the  imports 
came  from  I^ngland  to  San  Francisco,  and  comprised  a  wide  range  of  articles.  These  San  Francisco 
imports  from  England  included  coal  and  precious  stones  as  two  important  items,  and  after  deducting 
the  values  of  these  two  commodities,  the  remaining  San  Francisco  imports  wei'e  used  to  obtain  the 
factor,  by  which  the  values  of  the  unconverted  12  per  cent  residuum  of  Pacific  coast  imports  from 
Atlantic  countries  was  changed  from  values  to  cargo  tons. 

Of  the  Atlantic  coast  exports  to  Pacific  countries  those  sent  to  British  Australasia  are  the 
most  typical  and  the  most  important,  amounting  to  over  one-third  of  the  whole.  Inasmuch  as 
these  exports  to  Australasia  consisted  of  substantial  amounts  of  nearly  all  classes  of  commodities 
shipped  from  the  Atlantic  coast  to  the  Pacific,  it  was  thought  that  their  average  was  the  best  one 
to  take  for  converting  from  values  to  tons  the  small  share  of  the  export  trade  to  the  Pacific  that 
had  liot  been  directlj'  accounted  for. 

The  unconverted  Atlantic  imports  from  the  Pacific  were  reduced  to  tons  by  making  the 
Chinese  and  Japanese  imports  the  standard.  This  was  done  because  from  those  countries  the 
widest  range  of  the  most  typical  articles  was  received. 

The  methods  and  standards  followed  in  changing  the  values  of  the  imports  and  exports,  here 
under  consideration,  into  cargo  tons  of  weight  or  measurement  have  been  fully  explained,  because 
it  is  upon  those  methods  and  standards  thattlie  accuracj'  of  the  results  primarily  depends.  While 
the  results  obtained  are  necessarily  approximately  rather  than  absolutely'  exact,  it  is  believed 
that  the  figures  contained  in  the  foregoing  tables  are  as  close  to  the  truth  as  they  can  be  brought 
bj'  careful  statistical  work.  Having  descrihcd  tlie  manner  in  which  the  tables  were  constructed 
and  how  the  results  presented  in  them  wore  obtained,  attention  ma}'  now  be  directed  to  an  analysis 
of  the  tonnage  totals.  To  facilitate  comparison  the  totals  of  Tables  I  to  IV  are  summarized  ia 
the  following  Table  V : 


PANAJVLV  CANAJj  TRAFFIC   AND   TOLLS. 


345 


-  Value  and  cargo  tonnage  of  the  trade  which  the  United  States  would  have  had  through  an  isthmian  canal  during  the 
fiscal  year  ending  June  SO,  1S99. 


Pacific  coast. 

Atlantic  coast  other  than 
with     Hongkong    and 
Philippines. 

Atlantic  coast  vvlth  Hong- 
kong and  Philippines. 

Total  Atlantic. 

Values. 

Cargo  tons. 

Values. 

Car^o  tons. 

Values. 

Cargo  tons. 

Values. 

Cargo  tons. 

$5, 435, 003 
18,352,450 

300,829.8 
715,682.9 

S33,751,161 
40,210,860 

534, 371. 6 
1,020,514.9 

86,059,678 
1,959,975 

99,200.9 
151,540.2 

$39, 810, 839 
42,170,835 

633,572.6 
1,172,055.1 

Total 

23,787,453 

1,016,512.7 

73,962,021 

1,555,886.5 

8,019,653 

250,741.1 

81,981,674 

1,805,627.6 

Grand  total:  \'alues,  S105.769,127;  tons,  2,823,013.3  (including  873  tons  miscellaneous  exports  of  foreign  exports). 

The  total  value  of  the  maritime  commerce  of  the  United  States  that  might  have  used  an 
isthmian  canal  to  advantage  during  the  tiscal  3'ear  ending  June  30,  1899,  was  $105,769,137.  Of 
this  total  trade  the  Pacific  ports  had  $23,787,453  worth,  and  the  Atlantic,  including  their  trade 
with  t.he  Philippines  and  Hongkong,  §81,981,674  worth.  Whether  all  the  trade  carried  on  between 
our  eastern  ports  and  the  Philijtpiiifs  and  llonglvong  may  properly  be  included  in  this  total  value 
of  the  commerce  of  the  United  States  available  for  canal  traffic,  is  an  important  question  that  is 
considered  at  length  in  the  discussion  which  follows,  regarding  the  entrances  and  clearances  of  the 
vessels  that  would  have  used  a  canal  during  the  past  3'ear.  In  this  connection  it  is  sufficient  to 
note  that  the  value  of  the  trade  of  the  Atlantic  coast  ports  of  the  United  States  with  Hongkong 
and  the  Philippines  has  been  stated  separately. 

The  value  of  the  exports  from  our  west  coast  to  Europe  in  1899,  $18,352,450,  and  the  corre- 
sponding cargo  tonnage,  715,682.9  tons,  were  abnoi'mally  small  because  of  the  severe  drought  of 
the  year  1897-98.  The  larger  part  of  tonnage  export  of  that  section  consists  of  grain,  and  during 
the  j-ear  1898-99  the  grain  exports  were  less  than  5()  per  cent  of  their  average  for  the  five  years 
preceding.  If  the  value  of  the  grain  exports  of  the  Pacific  coast  for  the  tiscal  year  1898  be  sub- 
stituted for  those  of  1899  in  the  above  table,  the  total  value  of  the  west  coast  exports  would  have 
equaled  $40,299,881. 

The  exports  other  than  grain  had  practically  the  same  value  in  1898  and  in  1899.  Had  the 
grain  exports  of  1899  been  equal  to  those  of  1898,  or,  in  other  words,  had  their  amount  been 
normal,  the  carge  tonnage  of  the  west  coast  exports  would  have  been  1,328,757  tons  instead  of 
715,682.9  tons,  the  figures  in  the  above  table:  and  the  total  cargo  tonnage,  instead  of  having  been 
2,823,013.3  tons,  as  stated  in  the  table,  would  have  been  612,874.1  tons  more,  or  3,435,887.4. 
This  larger  total  is  a  much  more  accurate  expression  than  is  the  .smaller  total  of  the  cargo  tonnage 
of  maritime  foreign  commerce  available  for  canal  traffic  during  the  last  two  3'ears.  This  larger 
sum  will  be  u.sed  in  the  comparison  that  will  subsequently  be  made  with  the  tonnage  estimates 
derived  by  other  methods  of  investigations  that  will  be  described  later. 


THE  AVERAGE  VALUES  OF  THE  CARGO  TON. 

Besides  revealing  the  total  value  and  total  cargo  tonnage  of  the  import  and  export  trade 
which  our  country  might  have  had  by  way  of  the  i^roposed  isthmian  waterway  in  the  fiscal  year 
ending  June  30,  1899,  the  tables  indicate  some  interesting  differences  in  the  characteristics  of  the 
trade  of  our  Atlantic  seaboard  as  compared  with  the  commerce  of  the  Pacific  coast. 

The  value  of  the  Atlantic  coast  exports  listed  in  the  tables  was  $42,170,835,  and  the  cargo 
tonnage  of  these  exports  amounted  to  1,172,055  tons.  This  makes  the  average  value  of  the  cargo 
ton  to  have  been  $35.98.  In  the  case  of  the  Atlantic  coast  imports  considered  in  the  tables  the 
total  value  was  $39,810,839,  the  total  cargo  tonnage  633,572.5  tons,  and  the  average  value  of  the 
ton  $62.84. 

The  average  values  of  the  cargo  ton  will  doubtless  seem  low  to  manj-  persons.  It  must  not, 
however,  be  forgotten  that  the  tonnage  here  given  is  made  up  of  the  commodities  packed  for 
shipment.  A  large  amount  of  weight  and  space  are  taken  up  by  the  packing.  Moreover,  in  the 
case  of  many  commodities,  2,240  pounds  of  the  articles  would  be  much  more  valuable  than  40 
cubic  feet  of  it  would  be,  even  when  no  allowance  is  made  for  the  space  occupied  by  the  packages 
containing  the  goods.  The  average  values  just  cited  are  those  of  the  ton  of  freight  as  found  in 
the  holds  of  the  ocean  vessel. 

The  cargo  ton  in  these  tables  and  throughout  this  discussion,  it  may  be  well  to  note,  is  in 
some  cases  2,240  pounds;  but  in  other  instances,  and  more  frequently,  it  is  the  measurement  ton 


346  PANAJMA  CANAL  TRAFFIC   AND  TOLLS. 

of  40  cubic  feet.  It  was  impossible  to  make  a  distinction  between  tiie  weight  ton  and  the  mea- 
surement ton  in  compiling  the  above  tables,  because  both  arc  used  by  shippers  and  ocean  carriers 
without  distinction. 

The  difference  between  the  average  values  of  the  cargo  ton  of  imports  and  that  of  the  exports 
is  explained  b}^  the  fact  that  the  exports  to  the  Pacific  markets  consist  largely  of  bulkj'  manufac- 
tures of  iron  and  wood,  of  coal  and  petroleum  oil,  whereas  the  average  value  of  the  imports  from 
Pacific  countries  is  kept  high  by  the  Manila  hemp,  the  products  of  Japan  and  China,  Australian 
wool,  and  the  hides,  skins,  and  furs  from  Australia  and  South  America. 

The  cargo  ton  values  of  both  the  import  and  export  trade  of  the  Pacific  coast  with  Atlantic 
countries  ai'e  low.  The  total  value  of  the  imports  considered  was  $5, -435, 003,  and,  their  cargo 
tonnage  being  300,829.8  tons,  the  average  ton  value  was  118.07.  The  $18,352,450  worth  of 
exports  included  in  the  tables  comprised  a  cargo  tonnage  of  715,682.9  tons,  the  average  ton  value 
being  $25.64. 

The  principal  Pacific  coast  exports  were  wheat,  flour,  barley,  and  lumber,  and  these  com- 
modities tended  to  lower  the  average  ton  value.  Their  effect,  however,  was  to  some  extent  offset 
bj-  the  exportation  of  canned  .salmon  and  vegetables,  and  canned  and  dried  fruits.  The  small 
ton  value  of  the  Pacific  coast  imports  from  Atlantic  countries  is  accounted  for  by  the  fact  that 
the  greater  part  of  the  tonnage  is  made  up  of  coal,  salt,  cement,  and  glass.  The  textiles,  gloves, 
and  other  high-priced  European  articles  have  but  a  small  influence  on  the  ton  value. 

The  amount  of  cargo  tonnage  which  vessels  can  carry  per  gross  or  net  register  tonnage 
varies  with  different  ships,  but  the  ordinary  ratio  between  cargo  and  register  is  well  known.  In 
the  following  chapter  tables  are  given  which  show  the  net  register  tonnage  of  the  vessels  engaged 
in  the  commerce  that  would  have  used  an  isthmian  canal  in  1899.  A  comparison  of  the  figures 
of  cargo  tonnage,  of  the  part  of  our  foreign  trade  that  has  been  studied,  with  the  net  register 
tonnage  of  the  ships  that  carried  that  trade,  will  roughlj'  check  the  accuracy'  of  both  the  cargo 
and  the  vessel  tonnage  statistics  presented  as  the  result  of  this  investigation.  Before  making 
this  comparison,  however,  it  will  be  best  to  wait  until  the  tables  of  vessel  tonnage  contained  in 
the  discussion  that  follows  later  have  been  presented  and  analyzed. 

TONNAGE    Oi^    THE    COMMERCE    BETWEEN    EUKOPE   AND   THE    WEST    COAST    OF    SOUTH   AND    CENTRAL, 
AMERICA   AND   BRITISH    COLUMBIA   AND   HAWAH. 

Up  to  this  point  the  cargo  tonnage  discussed  has  been  that  of  the  United  States  only.  Our 
own  present  trade  that  would  pass  through  the  canal  merited  a  detailed  study,  because  of  the 
importance  of  secui-ing  as  much  information  as  possible  regarding  the  industrial  and  commercial 
value  of  the  canal  to  the  people  of  the  United  States;  but  it  was  not  thought  that  the  cargo 
tonnage  of  the  trade  which  Europe  now  has  with  the  west  coast  of  South  and  Central  America, 
and  with  British  Columbia  and  Hawaii,  need  be  changed  from  values  and  quantities  into  cargo 
tons,  in  the  same  detailed  way  that  the  values  of  our  own  available  canal  commerce  were  converted 
into  their  tonnage  eciuivalents. 

The  large  mass  of  information  which  the  investigation  of  American  trade  had  furnished, 
regarding  the  relation  of  values  and  quantities  to  cargo  tonnage,  was  equally  applicable  to  the 
commerce  of  foreign  countries;  and  this  information  enabled  the  conversion  of  the  greater  part 
of  the  trade  of  other  countries  to  be  made  more  easily  and  quickly.  The  commodities  not 
changed  from  values  to  tons  by  the  direct  method  were  convei'ted  by  means  of  averages  chosen 
in  a  manner  similar  to  those  methods  used  in  the  conversion  of  American  imports  and  exports. 

It  was  not  considered  necessary  to  determine  the  cargo  tonnage  which  every  foreign  country 
now  has  availalth^  for  canal  traffic.  By  taking  the  nine  European  countries — the  United  Kingdom, 
France,  Germany,  Belgium,  Holland,  Austria-Hungary,  Italy.  Spain,  and  Sweden — nearly  all  the 
commerce  which  foreign  nations  would  have  with  the  west  coast  of  America  and  Hawaii  was 
reached.  Norway  has  no  commerce  with  this  section,  and  that  of  Greece  and  Russia  is  slight. 
The  trade  of  Europe  with  our  west  coast  was  included  in  the  study  of  our  canal  commerce. 

The  first  of  the  following  tables  gives  the  cargo  tonnage  of  the  trade  which  the  nine  European 
countries  just  named  had  with  the  west  coast  of  South  and  Central  America  in  the  calendar  year 
1898 — the  figures  for  Belgium  being  for  1899 — and  shows  how  the  countries  shared  in  this 
commerce.  It  also  indicates  how  the  trade  was  divided  among  the  several  west  coast  American 
nations.  The  table  is  divided  into  two  sections  for  the  purpose  of  showing  both  the  import  and 
export  cargo  tonnage  for  South  America  and  Central  America  separately.  In  another  table  the 
trade  of  Europe  with  Hawaii  and  British  Columbia  is  shown. 


PANAMA  CANAL  TRAFFIC   AND  TOLLS. 


347 


Cargo  tonnage  of  the  trade  between  Europe  and  the  Pacific  coadt  of  South  and  Central  America,  1898. 
EUROPEAN  IMPORTS. 


American  countries. 

United 
King- 
dom. 

France. 

Germany. 

Belgium,  o 

Holland. 

Austria- 
Hungary. 

Italy. 

Spain. 

Sweden. 

Total. 

SOUTH   AMERICAN. 

Bolivia 

9,622 
954, 792 
15,292 
54,083 

Chile .' 

294,037 

4,832 

126, 567 

293, 668 
6,397 
30, 342 

124, 619 

4 

16, 876 

12, 461 

39 

5,063 

6,715 

i,8as 

547 

4,141 

1,694,435 

68,547 

1 

11,814 

426,436 

330, 407 

1,033,689 

141,399 

81,008 

40 

16,877 

8,150 

4,141 

2,041,147 

CENTKAL  AMERICAN. 

3,770 
.  390 
3,107 
2,395 

6  4,330 

48,895 
0  10, 130 

215 

1,752 

130 

89 
117 

9,662 

4,330 

59,025 

345 

1,958 

75,320 

EUROPEAN  EXPORTS. 


SOUTH   AMERICAN. 

10,870 
119,348 
17.443 
43,  320 

45 

3,812 

778 

1,314 

10, 918 
781,497 

Chile 

460,255 
11,303 
97,440 

64,473 
6,140 
13.158 

118,862 
1,798 
4,900 

2 

14,745 

1 

9,798 

169, 931 

Total 

568,998 

83,  771 

190,981 

125,  .%0 

3 

24,543 

5,949 

CENTRAL  AMERICAN. 

11,221 
2,081 
7,  .583 
7,970 

10,224 
<i7,783 

696 
44 

3,421 
600 

939 

22, 980 

rt 2, ioo 

1 

88 

11, 005 

Total 

28,865 

2,105 

IS,  007 

4,661 

1,028 

54,556 

«  Belgian  figures  are  for  1899. 
Mnoluding  Costa  Eica  and  Honduras. 

It  will  he  seen  that  nearly  two-thirds  of  the  entire  cargo  tonnage,  of  the  trade  between  the 
nine  European  countries  and  the  west  coast  of  Spanish  Amiu'ica,  consisted  of  imports  from  South 
America,  and  that  four-tifths  of  these  imports  were  from  Chile.  This  indicates  the  present 
prominence  of  the  nitrate  of  soda  trade. 

In  cargo  tonnage  Germany  ranks  first  among  the  nine  nations  in  the  trade  with  the  west  coast 
of  Spanish  America,  but  in  value  of  commerce  the  United  Kingdom  is  much  ahead  of  Germany, 
because  of  the  high  value  of  the  British  exports.  Germany's  large  import  tonnage  is  made  up 
Qiostly  of  nitrate  of  soda  for  use  in  her  chemical  industries,  and  her  exports  contain  some  coal, 
but  consist  largely  of  manufactures.  The  coal  exports  of  the  United  Kingdom  are  heavy,  but 
the  exports,  as  a  whole,  derive  their  value  mainly  from  the  manufactures. 

The  cargo  tonnage  of  the  total  exports  of  the  nine  European  countries  to  the  section  of  the 
American  continents  under  discussion  was  1,05-1:, 361  tons,  and  the  imports  2,116,167  tons.  The 
following  table  shows  how  the  trade  was  divided  between  the  South  American  and  Central 
American  countries: 

Summartj  of  cargo  tonnage  of  European  imports  and  exports — Trade  with  South  and  Central  Awerica,  1S98. 


South 
America. 

Central 
America. 

Total. 

Tons. 
2,041,147 
999, 805 

Tons. 
75,320 
54, 556 

Tons. 

2,116,467 

1,054,361 

Total 

3, 040, 952 

129, 876 

3,170,828 
3,170,828 

Whether  the  entire  commerce  of  Europe  with  the  west  coast  of  South  America  would  make 
Tise  of  the  isthmian  canal  will  be  considered  in  the  chapter  devoted  to  the  discussion  of  the  vessel 
tonnage  that  would  now  pass  through  the  canal,  and  to  the  consideration  of  the  question  of  tolls. 


348 


PAN.UIA  CANAL   TRAFFIC   AND   TOLLS. 


In  general,  the  canal  will  secure  nearlj'  all  of  this  trade  unless  the  tolls  should  be  so  high  as  to 
make  the  longer  and  less  desirable  route  around  the  Horn  or  through  the  Straits  of  Magellan 
more  profitable.  The  only  trade  that  would  not  pay  a  moderate  toll  for  the  privilege  of  using 
the  canal  is  that  of  Chile  south  of  the  fortieth  parallel  of  latitude,  and  the  commerce  of  that  sec- 
tion is  not,  and  can  hardly  become,  of  nuich  consequence. 

The  cargo  or  freight  tonnage  of  Europe's  trade  with  Hawaii  and  British  Columbia  in  the 
fiscal  year  1899  is  shown  in  the  following  table: 

Cargo  tonnaye — European  trade  u-ith  Hauaii  atiJ  Sritish  Columbia. 


Tons. 
37,334 
24,699 


Tons. 
71, 127 
24, 699 


In  this  table  the  figures  are  based  on  sta,tistics  kept  by  Hawaii  and  British  Columbia.  The 
vessels  entering  Hawaii  take  cargoes  mainly  of  sugar  to  the  United  States,  hence  there  are  no 
exports  from  Hawaii  given  in  the  table.  The  British  Columbia  trade  during  the  year  ending 
June  30,  1899,  was  but  little  more  than  two-fifths  that  of  the  previous  year,  and  for  that  reason 
the  totals  of  the  above  table  are  unduly  small,  but  for  the  sake  of  presenting  the  latest  data  it 
has  been  thought  best  to  retain  the  figures  for  the  year  1899. 

The  cargo  tonnage  or  the  European  trade  with  the  west  coast  of  Mexico  is  not  obtainable, 
because  the  European  statistics  do  not  separate  the  commerce  with  the  east  coast  of  Mexico  from 
that  with  the  west  coast. 

The  total  freight  tonnage  of  the  trade  between  European  countries  and  western  South  and 
Central  America,  British  Columbia  and  Hawaii,  during  the  latest  statistical  year  for  which  infor- 
mation was  obtainable,  was  3,266,65-1  tons.  This  total  does  not  comprise  the  commerce  with  the 
west  coast  of  Mexico.  Moreover,  it  does  not  include  any  of  the  commerce  between  Europe  and 
Eastern  countries — a  part  of  which,  for  reasons  stated  later,  would  pass  through  the  American 
canal.  In  studying  the  tonnage  of  cargo  that  the  commerce  of  the  United  States  might  have 
furnished  the  canal  in  1898  and  1899,  the  total  was  found  to  be  3,435,887  tons.  The  sum  of  these 
two  totals  is  6,702,541. 

This  represents  the  tons  of  cargo  which  the  commerce  of  the  United  States  and  the  commerce 
between  nine  European  countries  and  the  west  coast  of  America  might  have  passed  through  an 
American  isthmian  canal  during  Europe's  fiscal  year  1898,  corresponding  with  the  calendar  year, 
and  our  fiscal  year  ending  with  June,  1899.  These  are  figures  applying  to  the  commerce  of  the 
past,  carried  under  the  conditions  then  prevailing.     They  do  not  refer  to  the  future. 

(Note. — The  totals  in  this  and  the  subsequent  statistical  chapter  difl'er  somewhat  from  those 
published  in  the  preliminary  report  of  the  Isthmian  Canal  Commission,  November  30,  1900.  In 
several  instances  th(>  statistics  of  the  final  report  of  the  Commission  are  for  a  different  year  than 
were  the  figures  comprised  in  the  totals  given  in  the  preliminarj'  report.) 


DIAGRAM 

OF  TONNAGE 

1888 

AND 

895- 

1899 

SAILING    ve:s3e:ls 

1                                      YEAR                                        1           1            1            1            1       "TO^S 

54 

52 

5,000,0  00 

48 

46 

44 

42 

•4poo,ooo 

38 

36 

34 

32 

3,000,000 

28 

26 

24 

22 

2,000,000 

18 

16 

14 

12 

1,000,000 

8 
6 
4 
2 
O 

. 

1 

T 

OTAL 

\, 

\ 

^"^ 

G^ 

OOP' 

\ 

, 

\ 

^s 

--■^ 

■ 

■~~~-- 

— ^Gr 

iiiPs 

^ 

•^ 

— — 

GR 

DUP_4. 

. — ■ 

X 

GR 

OUP3 

DIAGRAM  OFTONN 

AGE 

1888 

AND 

1895- 

1899 

STEAMSHIPS  AND  SAIUING    VESSELS    COMBINED 

2                                                                                                U)            lO           1^           <o            a> 

S                                    YEAR                                    S           S           S          S           S       T'O'^S 

y 

86' 

84 

82' 

8,000,000 

7  8 

76 

74 

72 

7.000,000" 

68 

66 

64 

62 

6,0  0  0,000 

58 

56 

54 

52 

5,00  0,000 

48 

46 

44 

42 

4,000.000 

38 

36 

34 

32 

3,000,000 

28 

26 

24 

22 

2,000,00  0 

1  8 

1  6 

14 

1  2 

I.OOO^OO 

8 

I 
2 
o 

/ 

_ 

y 

\^-^ 

TO 

_ 

' 

1 

" 

" 

/^ 

^ 



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y   • 

— G-a. 

nupt 

,,,,^-^* 

. 

aro 

JP_1__, 

_ 

, 

__ 

' 

" 

1 

^ 

, ^ 

5ROU 

-- — 

1 

v^     J 

DIAGRAM  OFTONNAGE 

1888  AND  1895- 

-1839 

STBAMSH  1  RS 

<0                                                                                                                   10             ID             (s.              CO             o> 

S                                    YEAR                                     §          §          S          2           §      "^°^S 

54 

52 

5,000,000 

48 

46 

44 

42 

4,000,000 

38 

36 

34 

32 

3,000,000 

28 

26 

24 

22 

2,000,000 

18 

16 

1^ 

12 

1,000,000 
8 
6 
4 
2 
o 

/ 

/ 

/ 

---^ 

/ 

/ 

/ 

/ 

^^ 

-^ 

/ 

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^ 

---^ 

/ 

■^ 

^^^ 

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JP,i^ 

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■ — ^ 

1 

1                   1 

1 
1 



^  r^ 

GROU£J 1 

/^ 

_^ 

. 

o"°^,'     ^ . 

GROU 

P3 

. 

\ \ 1 

1 

Chapter  XIX. 

TONNAGE  OF  THE  VESSELS  EMPLOYED  IN  THE  COMMERCE  THAT  WOXJLD  HAVE  USED  AN 

ISTHMIAN  CANAL  IN'  1899, 

In  ascertaining  the  tonnage  of  thie  vessels  now  engaged  in  the  world's  commerce  that  would 
make  use  of  an  isthmian  canal  two  methods  may  be  employed.  One  source  of  infoi"mation  is  the 
records  of  entrances  and  clearances  of  vessels  kept  by  the  leading  commercial  nations,  and  this 
information  is  fairly  satisfactory,  although,  as  will  be  shown  presentlj-,  careful  analysis  is  neces- 
sary to  avoid  eri'oneous  conclusions.  The  other  method  of  getting  at  the  vessel  tonnage  now 
available  for  the  use  of  a  canal  is  to  make  a  record  of  the  movements  or  the  voyages  of  all  ships 
whose  routes  are  such  that  the  vessels  would  naturally  pass  through  the  canal. 

This  latter  method  of  recording  vessel  movements  and  computing  the  tonnage  from  the 
records  thus  made  was  adopted  by  the  New  Panama  Canal  Companj'  in  lS9-i,  and  the  conclusions 
reached  by  their  elaborate  investigation  are  set  forth  in  the  chapter  which  follows  the  present 
one.  In  this  chapter  is  presented  a  discussion  of  the  statistics  of  entrances  and  clearances  of  the 
vessels  whose  commerce  would  have  taken  them  through  the  canal,  had  tuch  a  waterway  been  in 
existence  during  the  calendar  j'ear  1899.  In  a  few  instances  it  was  necessary  to  take  the  figures 
for  the  year  1898. 

Inasmuch  as  all  impoi'tant  commercial  nations  record  the  entrances  and  clearances  of  the 
•vessels  trafficking  at  their  ports,  and  state  with  which  countries  the  vessels  trade,  it  is  theoretically 
a  simple  matter  to  determine  the  tonnage  of  the  vessels  at  present  following  routes  for  which  the 
canal  route  would  be  substituted.  As  a  matter  of  fact,  however,  the  statistics  of  entrances  and 
clearances  have  certain  important  limitations,  due  to  the  fact  that  different  countries  follow 
dissimilar  rules  in  making  their  statistical  records.  In  some  cases  also  the  records  are  incomplete — 
as,  for  instance,  the  figures  recording  the  tonnage  of  vessels  trading  between  Europe,  Mexico, 
and  Central  America  do  not  indicate  whether  the  European  entrances  from  those  countiies  are 
from  the  Atlantic  or  from  the  Pacific  coast.  The  same  limitation  exists  as  to  European  clearances 
to  that  section  of  the  world. 

The  lack  of  uniformity  of  methods  of  collecting  statistics  of  entrances  and  clearances  may 
either  result  in  a  duplication  of  tonnage  records  or  in  an  uuaerstatemeut  of  the  tonnage  engaged 
in  the  commerce  of  certain  countries,  and  it  is  unfortunate  that  the  statistics  of  international 
trade  are  not  compiled  in  accordance  with  uniform  rules.  A  vessel  entering  a  German  port  is 
recorded  as  coming  from  toe  country  that  supplied  the  vessel  with  the  largest  shai'eof  its  cargo. 
If  this  vessel  were  to  enter  a  British  port,  she  would  be  recorded  as  having  sailed  from  the  most 
distant  country  from  which  cargo  was  brought.  The  French  practice  is  the  same  as  the  English. 
In  compiling  the  statistics  of  clearances  it  is  the  practice  of  Great  Britain  to  record  a  vessel  as 
clearing  for  the  most  distant  country  for  which  she  -has  cargo.  The  German  figures  credit  the 
clearances  to  the  countiy  to  which  the  most  cargo  is  bound.  The  French  practice  is  like  the 
English. 

CoiTespondence  with  the  collectors  at  a  number  of  the  ports  of  the  United  States  revealed 
the  surprising  fact  that  our  statistics  of  entrances  and  clearances  were  compiled  by  various  methods 
at  different  ports.  The  New  York  statistics  record  a  vessel  as  clearing  for  the  first  or  neai-est 
country  to  which  cargo  is  taken.  The  vessel  is  entered  from  the  most  distant  country.  At  other 
ports,  however,  different  practices  prevail,  four  variations  in  methods  having  been  reported  by 
our  collectors  of  customs.     [A  uniform  rule  has  since  been  promulgated.] 

A  German  vessel  en  route  from  Chile  may  call  at  a  Belgian  or  Dutch  port  and  appear  both  in 
their  statistics  of  entrances  and  in  the  German  records.  Likewise  a  vessel  outbound  from  Ger- 
many might  be  duplicated  in  European  statistics.  A  vessel  from  a  EurojDcan  port  may,  and 
usually  does,  call  at  a  number  of  Pacific  American  countries.  However,  the  avoidance  of  dupli- 
cation, because  of  the  numerous  stops  made  in  American  ports,  is  a  comparatively  easy  matter, 
because  only  the  records  of  the  entrance  and  clearance  at  the  European  end  need  to  be  considered. 
In  the  following  tables  and  discussion  no  figures  have  been  used  except  those  taken  from  the 
statistics. kept  in  Europe  and  in  the  United  States. 

There  is,  furthermore,  some  danger  of  confusion  because  of  the  difficulty  of  keeping 
Europe's  trade  with  the  east  coast  of  South  America  separate  from  that  with  the  west  coast. 


350 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


This  danger,  however,  is  only  slight,  because  most  of  the  lines,  both  European  and  American, 
carry  nothing  for  east  coast  ports.  It  is  over  2,000  miles  between  Chilean  and  Argentina  ports, 
consequently  vessels  find  it  unprotitable  to  run  part  loaded  between  the  ports  of  those  two  coun- 
tries. Vessels  load  full  cargoes  from  the  North  Atlantic  to  the  west  coast,  and  also  full  cargoes 
from  the  west  coast  to  the  North  Atlantic.  The  trade  of  the  east  coast  is  mainly  handled  by 
vessels  that  do  not  go  around  to  the  west  side. 

Although  the  American  statistics  of  entrances  and  clearances  were  not  compiled  in  accordance 
with  uniform  rules,  there  are  probably  no  duplications  in  the  figures.  In  fact,  the  practice  of 
New  York,  from  which  the  major  share  gf  our  commerce  moves,  of  recording  a  vessel  as  clearing 
for  the  first  port  of  call  for  the  discharge  of  cargo,  tended  toward  an  understatement  rather  than  an 
exaggeration  of  the  volume  of  outbound  traffic  destined  for  countries  that  will  be  reached  by  way 
of  an  isthmian  canal.     In  the  case  of  European  statistics  the  following  duplications  are  possible: 

1.  German  vessels  outbound,  as  suggested  above,  may  call  at  Holland  or  Belgium  and  be 
recorded  there.  These  German  vessels  outbound  might  possibly,  though,  as  a  matter  of  fact, 
they  seldom  if  ever  do,  call  en  route  at  British  ports.     One  German  line  calls  at  a  French  port. 

2.  German  vessels  inbound  may  call  at  a  French,  Belgian,  or  Dutch  port,  but,  as  a  matter 
of  fact,  they  do  not  call  at  Belgian  or  Dutch  ports.  Most  of  the  trade  from  the  west  coast  of 
South  America  to  Europe  is  carried  in  full  cargoes,  and  German  vessels  are  not  apt  to  make  calls 
en  route  at  European  ports.  This  is  indicated  by  the  fact  that  the  Belgian  clearances  in  the 
South  American  trade  consists  almost  entirely  of  steam  tonnage,  while  the  entrances  are  made  up 
mosth'  of  sailing  vessels.  The  same  is  true  of  the  Netherlands.  In  regard  to  the  French  sta- 
tistics there  is  some  uncertaintj'. 

3.  Two  British  lines  to  and  from  the  west  coast  of  South  America  call  at  French  ports. 
Thus  the  French  statistics  are  liable  to  include  some  tonnage  entered  in  the  British  and  some 
contained  in  the  German  figures.  The  probable  amount  of  such  duplication  will  be  considered 
below  in  the  discussion  of  the  tables  which  follow. 

4.  In  the  case  of  Spanish  statistics  of  entrances  and  clearances,  it  is  possible  that  some  Brit-  * 
ish,  some  French,  and  some  Italian  tonnage  may  be  included. 

Such  are  the  possible  kinds  of  duplication.  It  is,  however,  only  in  the  statistics  of  the  west 
coast  of  South  American  trade  that  duplications  are  possible,  and  to  assist  in  determining  the 
extent  to  which  duplications  probably  occur  it  will  be  be^^t  to  study  a  table  showing  the  figures 
of  entrances  and  clearances  in  the  trade  of  European  countries  with  the  west  coast  of  South 
America.  The  following  table  summarizes  the  apparent  vessel  tonnage  of  the  trade  of  European 
countries  with  western  South  America.  It  is  compiled  from  the  latest  available  figures,  wnich 
in  the  case  of  the  United  Kingdom,  France,  Belgium,  the  Netherlands,  and  Italy  were  for  the 
year  1899,  and  for  the  other  countries  were  for  1S98.  The  totals  of  the  table  are  subject  to 
such  modification  as  may  be  found  necessary  in  order  to  eliminate  the  results  of  duplication. 

European  erUrances  and  clearances,  vessels  trading  uith  west  coast  of  South  America. 


Entrances. 

Clearances. 

Total  en- 
trances 

andclear- 
ances. 

Chile. 

Peru. 

Ecua- 
dor. 

Total. 

Chile. 

Peru. 

Ecua- 
dor. 

Total. 

227,260 
94,570 
45,812 

252,792 
12, 416 
77, 156 

276,306 
2,272 

68,34S 

16, 180 

(■14,635 

b  4, 078 

802 

2,149 

297, 752 

110, 750 
69, 947 

256, 870 
13,218 
77,156 

325,358 
2,272 

372,053 
102, 789 

3,348 
128, 125 

4,924 

139,599 

122,667 

472 

70,513 
788 

'"i.3,'452' 
5,256 

10,066 

452, 632 
103,577 
3,348 
141,577 
10, 180 
139,599 
153,251 
472 

750,384 

214,327 

63,295 

398,447 

23,398 

216,755 

28,896 

20,156 

8,496 

22,088 

478,609 

2,744 

988,084 

132,934 

22,305 

1,143,323 

873, 977 

98,505 

32,154 

1,004,636 

2,147,959 

a  Entered  as  Peru  and  Boli' 


!>  Pacific  South  America  other  than  Chile. 


The  table  shows  that  the  European  statistics  of  entrances  and  clearances  of  the  vessels 
engaged  in  the  trade  with  western  South  America  apparently  comprise  a  total  of  2,147,959  tons. 
In  order  to  determine  more  nearly  what  the  actual  vessel  movement  was,  it  is  necessary  to  elimi- 
nate duplications  as  far  as  it  is  possible  to  do  so.  Efi'orts  have  been  made  to  secure  information 
from  the  statistical  departments  of  European  Governments  not  only  regarding  the  regulations 
which  they  follow  in  the  compilation  of  their  statistics,  but  also  concerning  the  movements  of 
vessels.  The  information  obtained,  however,  was  not  sufficient  to  make  possible  the  avoidance 
of  a  resort  to  estimates  in  making  reductions  from  the  statistical  tables  above  given. 

Great  Britain  and  Germany  are  so  situated  that  they  are  the  European  termini  of  vessel 
movements  between  Europe  and  South  America.  Accordingly,  the  German  and  British  figures 
for  entrances  and  clearances  may  well  be  taken  without  alteration.  Such,  however,  is  not  the  case 
with  Belgium,  the  Netherlands,  France,  and  Spain,  at  whose  ports  both  German  and  British 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  351 

vessels  call  en  route.  At  Spanish  ports  French  and  Italian  vessels,  as  well  as  British,  make  more 
or  less  frequent  calls.  An  examination  of  the  Dutch  and  Belgian  entrances  and  clearances  shows 
that  the  vessels  arriving  consist  of  sailing  vessels,  and  that  those  departing  are  nearly  all 
steamers.  This  would  indicate  that  the  incoming  traffic  is  carried  by  chartered  sailing  vessels 
with  full  cargoes.  These  sailing  vessels,  after  discharging  their  cai'go,  doubtless  depart  for  a 
British  port  in  search  of  outbound  coal  cargoes.  The  steamers  clearing  from  the  Belgian  and 
Dutch  ports  are  in  all  probability  mostly  German  vessels,  although  some  British  tonnage  may 
be  represented.  In  view  of  these  facts,  it  seems  that  the  Belgian  and  Dutch  ligures  for  entrances 
should  be  retained  in  the  total  without  alteration,  but  that  some  reduction  should  be  made 
in  the  clearances  to  avoid  recording  a  vessel  a  second  time  whose  tonnage  has  already  been  included 
in  German  clearances.  The  total  clearances  from  Belgium  and  the  Netherlands  are  106,995  tons, 
but  these  clearances  can  not  all  have  been  entered  in  the  German  ligures,  because  the  German 
clearances  are  much  less  than  the  entrances.  It  seems  probable  that  the  larger  part  of  the  tonnage 
of  German  vessels  recorded  as  clearing  for  South  America  goes  in  ballast  to  Antwerp  and  is  not 
recorded  in  the  German  clearances.  Just  how  much  reduction  should  be  made  in  the  clearances 
of  Belgium  and  the  Netherlands  must  be  entirely  a  matter  of  judgment,  but  it  has  been  thought 
proper  to  take  30,000  tons  from  the  total. 

The  largest  amount  of  duplication  in  the  tonnage  figures  doubtless  occurs  in  the  French 
statistics.  There  is  one  French  line  of  steamers  plying  between  France  and  the  western  coast  of 
South  America;  English  vessels  call  at  French  ports,  and  one  German  line  makes  calls  en  route 
at  two  French  ports.  The  French  entrances  are  172,107  tons  greater  than  the  clearances,  and  it 
is  probable  that  this  excess  of  entrances  over  clearances  is  to  be  accounted  for  by  the  tonnage 
of  chartered  sailing  vessels  which  bring  full  cargoes,  mainly  nitrate  of  soda,  to  France.  This 
difference,  then,  ought  to  be  included  in  the  French  figures.  Furthermore,  the  figures  which 
cover  the  entrances  and  clearances  of  the  French  line  ought  to  be  included.  Probably  50,000 
tons  of  entrances  and  a  like  amount  of  clearances  will  cover  the  vessel  movements  of  that  line  of 
steamers.  It  is  probable  that  the  remainder  of  the  total  entrances  and  clearances  as  shown  in 
the  French  figures  is  also  comprised  in  the  British  and  German  statistics.  It  has  therefore 
been  thought  proper  to  deduct  from  the  French  figures  as  shown  in  the  table  206,502  tons — that  is, 
the  difference  between  272,107  (the  sum  included)  and  178,609,  the  total  shown  in  the  table. 

Both  British  and  French  vessels  call  at  Spanish  ports,  and  probably'  Italian  vessels  occasion- 
ally do.  The  amount  of  commerce  which  Spain  has  with  the  west  coast  of  South  America  is  not 
much,  and  probablj'  the  figures  for  the  entrances,  77,156  tons,  cover  all  the  commerce  which  that 
country  has  with  the  American  section  under  consideration.  The  clearances  are  very  much  larger 
than  the  entrances,  but  the  amount  of  outboimd  commerce  is  slight.  It  seems  certain  that  the 
Spanish  figures  for  clearances  represent  English  and  French  vessels  that  have  already  been 
recorded  in  clearance  statistics  before  reaching  Spanish  ports.  Accordingly,  it  is  believed  that 
accuracy  demands  the  subtraction  of  the  Spanish  clearances  from  the  totals  of  the  above  table. 
The  entrances  and  clearances  of  Italy  are  small,  and  doubtless  represent  the  actual  vessel  move- 
ment between  Italy  and  western  South  America.  The  same  may  be  said  of  Sweden.  Russia 
does  not  appear  in  the  table  because  there  were  no  vessel  movements  between  her  ports  and 
western  South  America  during  the  year  under  consideration. 

The  reductions  which  the  foregoing  analysis  suggests  ought  to  be  made  amount  to  376,101 
tons,  which,  taken  from  2,117,959  tons,  the  total  of  the  table,  makes  the  revised  total  1,771,858 
tons.  The  absolute  accuracy-  of  this  corrected  total  can  not  be  asserted.  At  best  it  is  only 
approximately  accurate,  and  must  be  so  considered.  It  may  possibly  be  as  much  as  100,000  tons 
in  error,  although  that  is  hardly  probable.  There  are  various  ways  of  checking  these  figures  so 
as  to  determine  whether  they  are  approximately  correct  or  whether  they  are  largely  in  error. 
One  method  of  checking  them  will  be  discussed  in  a  later  chapter  where  the  totals  reached  by  the 
three  separate  and  distinct  statistical  investigations  presented  in  this  report  are  compared.  A 
study  has  been  made  of  the  importation  of  nitrate  of  soda  into  European  countries,  the  most 
important  export  from  western  South  America;  and  the  tonnage  of  British  coal  exports  have 
also  been  considered.  The  figures  of  nitrate  and  coal  movements  are  in  general  accord  with  the 
distribution  of  vessel  tonnage  suggested  in  the  above  revision  of  the  totals  of  the  table  of  entrances 
and  clearances.  Furthermore,  the  information  that  has  been  obtained  regarding  the  routes  of 
steamers  owned  by  European  companies  operating  vessels  in  the  South  American  trade  has  sup- 
plemented the  data  supplied  by  foreign  governments,  in  such  a  way  as  to  make  it  probable  that 
the  revised  total  of  1,771,858  tons  fairly  approximates  the  facts. 

niPORTANCl;   OF   THE    CHILEAN   COBOIEECE. 

Every  student  of  the  industries  and  commerce  of  western  South  America  must  be  impressed 
with  the  great  importance  of  that  region  to  the  industries  of  Europe  and  the  eastern  part  of  the 
United  States,  and  also  to  the  prospective  traffic  that  will  make  use  of  an  isthmian  canal.     In 
34998°— 12 24 


352 


PANAJVIA  CANAL  TRAFFIC   AND  TOLLS. 


1899,  according  to  the  above  figures,  this  section  had  a  commerce  with  Europe  of  1,770,000  tons, 
an  amount  equal  to  nearh^  one-fifth  of  the  heavy  tonnage  then  passing  the  Suez  Canal. 

The  greater  part  of  this  west  coast  South  American  trade  consists  of  Chile's  foreign  com- 
merce, and  Chile's  prominent  place  is  due  to  the  nitrate  of  soda  beds  in  the  northern  part  of  that 
country.  Over  three-fourths  of  the  Chilean  exports  consist  of  nitrate  of  soda,  and  more  than  a 
million  tons  of  shipping  were  employed  in  carrying  that  commodity.  The  export  of  that  article, 
moreover,  is  rapiclly  increasing,  and  there  is  ever}'  reason  to  believe  that  it  will  continue  to  grow 
for  several  decades  to  come. 

The  average  annual  exports  of  nitrate  of  soda  from  Chile  for  the  three  calendar  years  1897, 
1898,  and  1899  were  1,226,000  metric  tons  of  2,204  pounds,  the  exports  for  the  year  1899  having 
been  1,360,000  metric  tons.  The  increase  during  the  previous  fifteen  years  amounted  to  940,000 
tons.  If  the  growth  in  the  export  of  this  commodity  during  the  succeeding  fifteen  j-eai's  should 
prove  to  be  no  greater  than  it  was  during  the  previous  period  of  equal  length,  the  nitrate  tonnage 
in  1914  will  amount  to  2,300,000  weight  tons. 

This  estimate  of  the  increase  in  the  use  of  nitrate  is  a  conservative  one,  because  it  assumes 
that  only  an  equal  quantity  increase  will  take  place  during  the  coming  period,  and  not  a  propor- 
tional percentage  increase.  If  it  were  assmued  that  the  same  percentage  of  growth  would  continue 
until  1914,  the  figures  for  nitrate  shipments  of  that  year  would  amount  to  4,250,000  tons,  and  the 
Chilean  export  trade  as  a  whole  would  exceed  5,000,000  cargo  tons.  Estimates  based  upon  the 
assumption  of  a  geometric  ratio  of  increase  might  properly  be  considered  excessive,  but  those 
which  result  from  the  application  of  the  arithmetical  rate  of  increase  will  doubtless  be  accepted 
as  moderate,  in  view  of  the  constantly  enlarging  demand  for  nitrate  in  the  manufacture  of 
fertilizers. 

Besides  being  an  exporter  of  nitrate  of  soda,  Chile  is  the  outlet  for  the  mines  of  Bolivia,  and 
also  has  copper  and  other  mineral  deposits  of  its  own,  as  well  as  a  variety  of  industrial  resources 
which,  together  with  the  characteristics  of  the  people,  combine  to  make  the  countiy  industrially 
and  commercially  progressive.  During  the  past  decade  the  nitrate  of  soda  has  comprised 
approximately  three-foijrths  of  the  cargo  tonnage  of  the  exports  of  Chile. 


VESSEL   TONNAGE   OF    EUROPEAN    TRADE   AVITH   WESTERN    CENTRAL    AMERICA   AND   MEXICO. 

It  is  impossible  to  determine  the  amount  of  the  trade  and  shipping  passing  around  the  Horn 
or  through  the  Straits  of  Magellan,  between  Europe  and  the  west  coast  of  Central  America  and 
Mexico,  because  Mexico,  and  all  the  Central  American  countries  except  Salvador,  have  ports  on 
both  oceans,  and  Germany  and  Italy  are  the  only  European  countries  whose  statistics  designate 
to  which  coast  of  these  countries  the  published  figures  apply.  The  figures  for  Salvador,  and  the 
German  and  Italian  entrances  and  clearances  for  the  trade  with  the  other  ports  on  the  west  coast 
of  Central  America  and  Mexico  are  shown  in  the  following  table.  German  figures  are  for  1898; 
others  for  1899. 

Tonnage  of  European  entrances  and  clearances  of  vessels  engaged  in  European  trade  with  western  Central  America  and  Pacific 

coast  of  Mexico. 


Entrances, 

Clearances. 

Country. 

Central 
America. 

Central 
America. 

Pacific 
Mexico. 

Terns. 
15,512 

Tom. 
13,118 
6,873 
1,595 

Tons. 
31,502 

Italy 

363 

2,504 

18,379 

20,486               31.602 

Total  entrances  and  clearances,  70,367  tons. 

The  combined  entrances  and  cleai-ances  recorded  in  this  table  amount  to  but  70,367  tons. 
The  figures  refer  only  to  vessel  movements  around  South  America.  The  vessel  tonnage  engaged 
in  the  traffic  across  the  Isthmus  of  Panama  is  considered  in  a  later  connection.  The  statistics  of 
other  European  countries  indicate  that  commerce  is  carried  on  with  Central  American  and 
Mexican  ports,  but  an  estimate  only  can  be  made  of  the  share  of  the  tonnage  that  should  be 
credited  to  the  Pacific  .shore.  Considering  the  importance  of  the  United  Kingdom  in  the 
maritime  and  commercial  world,  and  the  independent  ship-charter  trade  from  Central  America 
and  Mexico  to  the  United  Kingdom  and  the  other  European  countries,  not  mentioned  in  the 
tables,  it  is  safe  to  double  the  total  of  the  above  figures,  and  probablj'  140,000  tons  may  be  taken 
as  a  fair  estimate  of  the  direct  vessel  movement  between  Europe  and  Pacific  Central  America  and 


PANAMA  CANiVL  TRAFFIC   AND   TOLLS. 


353 


Mexico.  A  large  part  of  the  trade  between  Europe  and  western  Central  America  and  Mexico  is 
handled  via  Panama.  The  vessel  tonnage  of  the  Panama  trade  is  considered  in  a  later  connection. 
Reference  is  here  made  only  to  the  direct  vessel  movement  between  western  Central  America 
and  Europe  around  South  America.  In  connection  with  this  estimate  of  140,000  tons,  attention 
may  be  called  to  the  fact  that  the  larger  part  of  the  population,  industr}',  and  trade  of  Central 
America  is  on  the  Pacific  side,  where  for  climatic  reasons  the  growth  in  population  has  thus  far 
mainly  occurred. 

TRADE  OF  THE  WEST  COAST  OF  THE   UNTTED  STATES,  BRITISH  COLU3IBIA,  AND  HAWAII  WITH  EUROPE. 

The  reports  of  the  United  States  Bureau  of  Statistics  give  in  detail  the  entrances  and  clear- 
ances of  vessels  engaged  in  the  foreign  trade  of  each  of  our  customs  districts.  The  statistics  of 
the  tonnage  of  vessels  engaged  in  the  foreign  trade  of  the  United  States  that  would  avail  itself 
of  the  isthmian  canal  are  taken  from  our  Government  records.  The  figures  taken  are  for  the 
fiscal  year  ending  June  30,  1899.  In  the  following  table  is  given  the  trade  of  the  west  coast  of 
the  United  States,  of  British  Columbia,  and  of  Hawaii  with  Europe  in  the  year  1899.  The 
Canadian  and  United  States  figures  are  for  the  3'ear  ending  June  30;  the  Hawaiian  are  for  the 
calendar  year.  The  Hawaiian  and  British  Columbian  statistics  are  taken  from  the  ofiicial  publi- 
cations of  those  countries. 

Entrances  and  clearances,  trade  of  the  Pacific  coai<t  of  the  United  Staies,  British  Columbia,  and  Hawaii  with  Europe,  1899. 


European  trade  with — 

Entrances. 

Clearances. 

Tons. 

213,798 
■26,6So 
25, 032 

Tms. 
360,258 
15,437 

' 

Total 

266,486 

Combined  total,  642,1B0  tons. 

The  trade  between  the  Pacific  coast  of  the  LTnited  States  and  Europe  comprised  213,798  tons 
net  register  of  entrances  and  360,254  tons  of  clearances,  a  total  of  574,052  tons.  During  the 
same  year  the  commerce  between  our  Pacific  coast  and  South  Africa  employed  55,074  net  tons  of 
shipping,  but  that  is  not  included  in  the  totals  reached  in  this  chapter.  That  trade  would  find 
the  canal  route  about  1,500  miles  shorter,  and  if  the  tolls  were  low  the  canal  would  probably  be 
used."  A  large  number  of  vessels  cleared  for  Panama  with  traflic  for  Europe  bj'  way  of  the 
Panama  Railroad,  but  that  traflic  is  not  being  considered  here. 

The  total  entrances  and  clearances  for  the  trade  of  British  Columbia  with  Europe  in  1899 
amounted  to  but  43,092  tons;  the  previous  year  they  were  106,485  tons.  There  are  no  clear- 
ances from  Hawaii  to  Europe  recorded.  The  ships  take  Hawaiian  sugar  to  the  United  States  and 
clear  thence  for  Europe  or  elsewhere. 


UNITED    STATES    ATLANTIC   COAST   TONNAGE   VSTtTH    PACIFIC    COUNTRIES. 

Vessels  trading  between  our  Atlantic  coast  and  the  west  coast  of  South  America,  eastern 
Australia,  Oceania,  Japan,  and  China  will  use  the  isthmian  canal,  with  the  possible  exception  of 
a  part  of  the  vessels  passing  to  and  from  Hongkong  and  the  Philippines.  A  portion,  and  prob- 
ably the  larger  share,  of  the  Hongkong  and  Philippine  trade  will  use  the  canal. 

The  records  kept  at  the  United  States  customs  oflices  show  the  following  entrances  and 
clearances  in  the  trade  between  our  Atlantic  and  Gulf  seaboard  and  the  foreign  Pacific  countries. 
The  first  table  refers  to  the  Pacific  countries  of  South  America;  the  second  to  the  Orient,  i.  e., 
to  Japan,  Siberia,  China,  Hongkong,  the  Philippines,  Australia,  and  New  Zealand: 

Entrances  and  clearances,  United  States  Atlantic  coast  trade  mith  Hawaii  and  foreign  countries  of  Pacific  America,  year 

ending  June  SO,  1899. 


Country. 

Entrances. 

Clearanci's. 

Tons. 
1,608 
9,045 
68,277 
23,919 

Tons. 

4,229 
31,274 

25,955 

Chile 



Total 

102,849 

63,615 

Total  entrances  and  clearances,  166,364  tons. 

« In  the  preliminary  report  of  the  Isthmian  Canal  Commission  the  vessel  tonnage  totals  included  this  item  of 
55,074  tons. 


354  PANAMA  CANAL  TRAFFIC   AND   TOLLS. 

Entrances  and  clearances,  United  States  Atlantic  coast  trade  miih  Oriental  countries,  fiscal  year  1899. 


Country. 

Entrances. 

Clearances. 

Tbns. 
51,284 

Tons. 
174,036 
6,975 
49,347 
42,996 
26,696 

Biberia .              

39,536 
32, 621 
44,999 

^ 

4,912 

89,456 

173,362 

Combined  total,  627,422  tons. 

The  total  entrances  and  clearances  between  our  eastern  seaboard  and  Hawaii  and  the  countries 
of  western  South  America  for  the  year  ending  June  30,  1899,  were  166,364  tons.  There  was  no 
direct  vessel  movement  during  that  year  between  our  Atlantic  coast  and  British  Columbia  and 
Pacific  Mexico  or  Central  America. 

The  table  of  vessel  movements  between  the  eastern  ports  of  the  United  States  and  trans-Pacific 
countries  shows  a  total  of  •i5-4,070  tons  of  clearances  and  173,362  tons  of  entrances,  a  combined 
total  of  627,422  tons.  There  were  special  difiiculties  encountered  in  securing  the  statistics  of  the 
vessel  movements  between  our  eastern  seaboard  and  Eastern  countries,  because  the  published  fig- 
ures of  entrances  and  clearances  did  not  truly  record  the  actual  movements  of  vessels.  This 
was  due  both  to  our  practice  of  recording  the  statistics  and  to  the  fact  that  vessels  stop  going 
and  coming  at  European  and  other  countries  on  their  voyages  between  the  United  States  and 
the  Orient. 

The  figures  of  the  above  table  comprise  only  the  tonnage  of  vessels  which  the  records  of  our 
custom-houses  show  to  have  made  a  voyage  from  our  eastern  ports  to  countries  east  of  Singapore, 
or  to  have  entered  direct  from  those  countries.  As  a  matter  of  fact  many  vessels  take  cargoes 
from  the  United  States  to  Europe,  then  load  for  the  East,  whence  they  may  return  to  the  United 
States  either  by  way  of  Europe  or  by  .sailing  in  the  opposite  direction.  A  large  part  of  our 
exports  to  the  East  are  sent  to  Europe  and  there  reshipped.  Likewise  a  good  portion  of  our 
imports  from  trans-Pacific  countries  comes  to  us  by  way  of  Europe.  The  above  table  is  defective 
for  two  reasons.  It  gives  no  information  concerning  the  vessel  tonnage  employed  in  carrying 
our  exports  that  went  to  Eastern  countries  by  way  of  Europe  and  our  imports  that  came  from 
those  countries  by  some  European  city.  Again,  it  understates  the  tonnage  of  the  ships  that  come 
from  Eastern  coimtries  to  the  United  States.  Many  of  them  come  by  way  of  Java  and  are  entered 
from  the  Dutch  East  Indies;  others  come  by  way  of  Europe  and  are  entered  as  from  there.  Some 
come  from  Chile. 

A  more  adequate  measure  of  the  tonnage  of  the  shipping  engaged  in  commerce  with  Oriental 
countries  would  be  secured  by  doubling  the  tonnage  of  vessels,  making  the  voyages  directly  to 
those  countries.  This  larger  total,  908,140  tons,  is  probably  too  small,  but  it  has  been  adopted 
as  the  best  figure  obtainable  by  the  study  of  the  statistics  of  entrances  and  clearances  and  the 
known  facts  regarding  commercial  movements.  One  reason  for  thinking  it  unduly  small  is  that 
the  vessel  tonnage  of  the  commerce  between  our  Pacific  coast  and  the  trans-Pacific  countries  east 
of  Singapore  in  1899  amounted  to  1,591,000  tons.  While  the  vessel  tonnage  of  this  Pacific  trade 
was  doubtless  greater  than  the  vessel  tonnage  of  the  American  Atlantic  trade  with  the  countries 
east  of  Singapore,  it  does  not  seem  probable  that  the  latter  tonnage  was  less  than  three-fifths  of 
the  former.  Another  reason  for  thinking  that  the  vessel  tonnage  engaged  in  the  commerce 
between  our  eastern  seaboai'd  and  Eastern  countries  was  fully  as  much  as,  if  not  more  than, 
908,140  tons  during  the  fiscal  j^ear  1899  is  that  the  Panama  Canal  Company's  record  of  vessel 
movements  between  the  American  Atlantic  seaboard  and  the  Pacific  section  east  of  90  degrees 
ea.st  of  Paris  makes  the  total  tonnage  for  the  calendar  year  1,271,357  tons.  This  total  includes 
Singapore  and  Sumatra  and  Java,  and  should  be  larger  than  the  total  of  908,140  tons,  but  proba- 
bly less  than  363,000  tons  larger.  By  their  method  of  study,  which  is  described  in  the  following 
chapter,  they  could  follow  the  movements  of  each  ship  engaged  in  the  trade,  and  consequently  a 
chartered  vessel  that  engaged  in  the  trade  of  a  European  or  some  other  intermediate  country  in 
going  from  our  eastern  seaboard  to  the  East  or  in  returning  would  be  included  in  their  record, 
whereas  it  probably  would  not  in  the  American  entrance  or  clearance  records.  It  is  of  course 
possible  that  the  records  of  the  New  Panama  Canal  Company  may  overstate  the  tonnage  that 
would  be  required  to  handle  the  commerce  between  the  Atlantic  seaboard  of  the  United  States 
and  the  countries  east  of  Singapore,  if  all  the  vessels  engaged  in  this  trade  were  to  confine  them- 
selves to  this  traflic  alone,  but  their  records  presumably  accurately  state  the  tonnage  of  the  ves- 
sels which  annually  get  from  our  eastern  seaboard  to  Australia,  the  Philippines,  Hongkong, 


PANAJHA  CANAL   TRAFFIC   AND   TOLLS.  355 

China,  Siberia,  Japan,  and  come  back  again.  The  discussion  of  the  effect  which  canal  tolls  may 
have  upon  the  commerce  between  our  Atlantic  seaboard  and  Australia,  southern  China,  and  the 
Philippines  is  deferred  to  a  subsequent  chaptc',  where  it  is  considered  in  detail. 

Our  exports  to  Australia  are  growing  rapidly,  and  the  present  clearances  to  that  continent 
and  New  Zealand  comprise  a  fair-sized  total.  The  canal  may  be  expected  to  facilitate  our  export 
trade  to  Australia,  and  will  probably  cause  our  imports  from  that  region  to  come  to  us  more 
directly.  The  vessel  that  takes  American  goods  to  Australia  usually  loads  there  with  Australian 
products  for  Europe,  returns  thence  to  this  counti-y  with  pick-up  cargo  or  ballast,  and  the 
American  importer  gets  his  Australian  wool  and  other  products  at  the  London  sales.  The 
opening  of  a  direct  canal  route  between  New  York  and  Australia  may  change  this,  at  least  to  some 
extent,  and  lead  to  a  more  direct  return  trade  from  Australia.  Direct  importation  would  enable 
us  to  secure  the  goods  from  Australia  more  quickly  and  cheaply  and  would  be  of  assistance  to 
our  manufacturers,  who  are  requiring  increasing  quantities  of  the  raw  materials  obtained  in 
Australia,  New  Zealand,  and  Oceania. 

From  New  York  and  the  North  Atlantic  ports  of  the  United  States  the  distance  to  the 
Philippines  and  Hongkong  by  the  American  canal  route  will  not  be  very  much  less  than  by  Suez; 
consequently  the  trade  of  our  eastern  seaboard  with  those  and  other  places  so  nearly  antipodal 
will  be  divided  between  the  easterly  and  westerly  routes.  The  shipper  will  have  the  advantage 
of  the  competition  of  the  carriers  using  the  different  canals.  The  coast  between  Shanghai  and 
possibly  Yokohama  on  the  east,  and  Singapore  and  possibly  India  on  the  west,  will  be  traveled  in 
both  directions  bj-  vessels  bound  for  American  poi-ts. 

The  overlapping  of  trade  routes  in  the  East,  and  the  tendency  of  vessels  to  follow  the  routes 
where  the  greatest  volume  of  traffic  can  be  secured,  may  possibly  bring  some  of  the  East  Indian 
trade  across  the  Pacific  and  through  the  American  canal.  One  of  the  advantages  of  the  route  by 
the  American  Isthmus  will  be  the  cheaper  coal,  and  another  inducement  to  vessel  owners  will  be 
the  shorter  trip  in  tropical  latitudes,  where  many  commodities  are  liable  to  be  injured  by  heat 
and  humidity. 

Although  a  part  of  the  Hongkong  and  Philippine  trade  with  our  Atlantic  seaboard  will 
unquestionably  make  use  of  the  Suez  route,  the  figures  in  the  above  table  have  been  allowed  to 
stand  without  reduction,  because  the  statistics  of  entrances  and  clearances,  collected  at  our  Atlantic 
and  Gulf  ports,  do  not  include  all  of  the  present  commerce  of  the  eastern  half  of  the  United  States 
with  trans -Pacific  countries  that  might  use  the  American  canal  were  it  available. 

In  considering  the  vessel  tonnage  of  the  existing  commerce  that  might  use  an  isthmian  canal 
some  account  should  be  taken  of  the  shipping  that  now  plies  between  Asiatic  countries  and  our 
Pacific  coast.  With  China,  Japan,  and  Siberia  this  amounts  to  333,689  tons.  With  Hongkong 
and  the  Philippines  the  tonnage  is  464,978,  and  for  both  sections  combined  798,667  tons.  A  large 
but  indeterminable  part  of  this  trade  between  the  Pacific  coast  and  trans-Pacffic  countries  origi- 
nates and  ends  east  of  the  Roc|vy  Mountains.  Doubtless  the  greater  share  of  this  trade  will 
always  go  overland  to  and  from  the  Pacific  coast;  but  some  considerable  portion  will  be  diverted 
to  the  isthmian  route  after  the  canal  has  been  opened.  If  this  diverted  trade  and  tonnage  should 
amount  to  but  20  per  cent  of  the  total,  it  would  equal  about  160,000  tons,  a  tonnage  nearly  equal 
to  that  which  the  table  above  showfj  our  Atlantic  coast  vessel  movement  to  and  from  Hongkong 
and  the  Philippines  to  have  been  in  1899. 

While  the  Suez  Canal  will  get  some  of  the  commerce  of  eastern  Asia  and  the  Philippines 
with  our  Atlantic  seaboard  after  the  isthmian  canal  has  been  opened,  it  is  believed  that  this  traffic 
through  the  Suez  may  be  offset  by  the  amount  of  the  vessel  tonnage  of  our  present  Pacific  coast 
import  and  export  trade  that  would  use  an  American  canal.  Furthermore,  while  the  Suez  route  will 
draw  from  Manila  and  points  north  and  east,  the  isthmian  route  will  also  secure  tonnage  from 
the  territory  lying  south  and  west  of  Manila.  It  is  thought  that  these  facts  warrant  the  inclusion 
of  all  the  Atlantic  coast  tonnage  to  and  from  China,  Japan,  Hongkong,  and  the  Philippines  in 
the  estimate  of  the  vessel  tonnage  that  would  find  use  of  the  canal  advantageous.  Such  an  esti- 
mate as  this  can  be  only  approximately  correct,  because  it  is  impossible  to  predict  closely  the 
routes  which  the  East  Indian  and  south  Asiatic  trade  will  actually  follow  after  the  American 
interoceanic  canal  shall  have  completed  the  water  route  round  the  world. 

The  foregoing  discussion  has  made  no  reference  to  the  effect  which  the  canal  will  have  in 
diverting,  from  its  present  rail  and  water  routes,  a  portion  of  the  commerce  now  carried  on  by 
way  of  our  Pacific  coast  ports,  between  the  eastern  half  of  the  United  States  and  Australia, 
Hawaii,  and  the  rest  of  Oceania.  There  are  excellent  steamship  connections  between  the  west 
coast  of  the  United  States  and  Canada,  Hawaii,  and  Australia,  and  the  traflic  and  travel  of  the  Eastern 
United  States  to  and  from  those  countries  is  in  part  conducted  through  Pacific  coast  gateways. 
The  isthmian  canal  and  the  steamship  connections  by  way  of  it  will  undoubtedly  affect  the  present 
routes  for  some  of  the  traflic  now  carried  on  between  our  Eastern  States  and  those  countries. 


356  PANAMA  CAJSTAL  TRAFFIC   AND   TOLLS. 

The  entrances  and  clearances  of  the  vessels  trafficking  between  our  Pacific  coast  and  Australia, 
Hawaii,  and  other  islands  of  Oceania  are  shown  in  the  following  table: 


IX. — Entrances  and  clearances,  United  States  Pacific  coast  trade  with  Australasia  and  other  Oceania,  fiscal  year 

1S99. 

Entrances. 

Clearances. 

Tons. 
246,432 
148, 876 
8,3.51 

Tons. 
205, 987 

94,037 

7,960 

403,659 

307,984 

Combined  total,  711,643  tons. 


Although  there  is  no  doubt  but  that  a  portion  of  the  traflic  covered  by  the  above  table  would 
have  gone  through  the  canal  had  it  been  in  existence  in  1899,  there  is  no  way  of  deciding  what 
percentage  would  have  taken  the  isthmian  route.  None  of  this  tonnage  has  been  included  in 
making  up  the  totals  reached  in  this  chapter.'' 

VESSEL   TONNAGE    ENGAGED   IN   THE    PRESENT   TRAFFIC   ACROSS   THE    ISTHMUS   OF   PANAMA. 

In  none  of  the  preceding  tables  is  there  a  statement  of  the  tonnage  engaged  in  the  traffic 
now  carried  across  me  Isthmus  of  Panama  by  rail.  This  transisthmian  traffic  is  a  part  of  the 
Atlantic-Pacific  trade  of  both  Europe  and  America.  Three  lines  of  steamers  now  run  north  from 
Panama  on  the  west  coast,  two  lines  run  south,  and  the  business  of  those  steamers  would  become 
caual  traffic. 

More  than  a  million  tons  of  shipping  enter  the  port  of  Colon  each  year,  but  that  tonnage 
would  not  be  a  fair  index  of  the  amount  that  would  go  through  the  canal.  Colon  is  a  port  of  call 
for  nearly  all  the  lines  of  steamships  connecting  the  Gulf,  West  Indian,  and  Caribbean  waters 
with  the  United  States  and  with  all  the  leading  European  countries.  A  call  at  Colon  is  but  an 
incident  in  the  voyage  of  the  steamers  trafficking  in  the  Gulf  and  Caribbean,  but  the  situation  at 
Panama  is  different.  The  geographical  location  of  that  city  is  such  that  a  large  part  of  the 
steamers  from  the  North  or  South  make  Panama  the  beginning^or  end  of  their  voyages.  Before 
the  year  1899  the  lines  from  the  South  did  not  go  north  of  Panama  and  none  from  the  North 
went  south  of  Panama.  Since  then  the  lines  from  the  South  have  extended  their  route  beyond 
Panama,  and  that  city  has  now  become  a  port  of  call  as  well  as  a  terminal  point.  If,  however, 
the  year  1898  be  taken,  the  tonnage  of  Panama  may  be  considered  as  indicative  of  the  tonnage 
which  the  present  transisthmian  trade  would  cause  to  use  the  canal. 

During  the  year  1898, 1'19  steamers,  with  an  aggregate  tonnage  of  336,998  tons,  entered  this 
port.  Panama  has  some  .sail  tonnage,  which  is  omitted  from  the  calculations  here  made  because 
most  of  the  sailing  vessels  are  either  local  or  are  employed  in  bringing  coal  from  Australia  for 
the  steamship  lines.  This  business  would  disappear  with  the  opening  of  the  canal  and  the  estab- 
lishment at  the  Caribbean  entrance  of  coaling  stations  supplied  with  coal  from  the  United  States. 

Whether  both  the  entrances  and  clearances  at  Panama  should  be  included  in  computing  the 
canal  tonnage  which  the  commerce  at  Panama  would  have  contributed  to  the  traffic  of  an  isthmian 
waterway  in  1898,  or  whether  only  the  entrances  should  be  counted,  constitutes  an  interesting 
question  in  statistics.  The  clearances  were  practically  identical  with  the  entrances,  and  if  they 
were  included,  the  above  total  would  be  doubled.  Reasons  for  doubling  the  entrances  may  be 
found  in  the  fact  that  there  were  presumably  no  vessels  engaged  in  the  traffic  entering  at  Panama 
that  did  not  find  the  business  profitable,  and  that  these  vessels  in  taking  cargo  from  the  west  coast 
of  North  or  South  America  for  the  American  or  European  Atlantic,  stopped  their  eastbound 
voyage  at  Panama  instead  of  at  some  Atlantic  port,  simply  because  there  was  no  waterway  across 
the  Isthmus.  They  would  have  made  a  round  trip  through  the  canal  and  back  to  the  west  coast 
had  thej'  been  able  to  do  so. 

The  reasons  why  only  the  entrances  have  been  counted  in  the  statistical  calculations  of  this 
chapter  are: 

1.  That  the  existence  of  a  canal  and  the  avoidance  of  transshipment  of  cargo  at  Panama  would 
have  enal)led  the  same  tonnage  of  vessels  to  have  carried  a  larger  amount  of  traffic. 

2.  The  vessels  entering  and  clearing  Panama  are  also  engaged  en  route  in  a  coasting  trade  of 
some  importance.  The  through  business  done  at  Panama  included  only  a  part  of  the  transporta- 
tion business  of  the  vessels  which  entered  that  port,  even  in  1898,  when  it  was  a  terminal  instead 
of  a  point  of  call  en  route. 

"  The  statistical  total  of  vessel  tonnage  published  in  the  preliminary  report  of  the  Isthmian  Canal  Commission 
included  79,218  as  the  tonnage  of  our  Pacific  coast  trade  with  Australasia  and  other  Oceania  which  it  was  estimated 
would  be  at  once  diverted  to  the  canal.  Communications  received  from  several  officials  of  the  transcontinental 
railways  express  the  opinion  that  a  considerable  share  of  the  foreign  traffic  now  carried  over  the  mountains  by  rail 
will  be  diverted  to  the  canal  line,  that  is  to  say,  is  traffic  at  present  available  for  the  canal.  However,  in  order  to 
be  conservative  and  to  avoid  assumptions  whenever  possible,  there  is  none  of  this  Pacific  coast-Oceania  tonnage 
included  in  the  totals  of  this  report. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  357 

3.  This  last  fact  is  shown  by  the  total  tonnage  of  freight,  northbound  and  southbound, 
handled  by  the  Panama  Railroad  in  1898 — 2(38,156  tons  of  freight.  In  most  cases  the  net  register 
vessel  tonnage  is  considerably  less  than  the  cargo  tonnage;  and  for  this  reason,  principally,  it  has 
been  thought  best  to  count  only  the  entrances  at  Panama,  336,998  tons,  in  arriving  at  the  total 
available  canal  traffic." 

COASTING   TRADE  OP  THE   UNITED   STATES   AVAILABLE   FOR  THE  CANAL. 

The  coasting  trade  between  the  two  seaboards  of  the  United  States  carried  on  by  way  of 
Cape  Horn  or  the  Straits  of  Magellan  is  the  only  additional  tonnage  item  requiring  examination. 
The  Horn  route  has  been  followed  since  the  dajs  of  '49,  and  while  it  will  probably  be  deserted 
after  the  completion  of  the  canal,  it  or  the  Straits  of  ^Magellan  will  be  increasingly'  used  until  that 
time.  Until  recently  this  traffic  has  been  handled  by  sailing  vessels,  but  the  line  of  seven  new 
steamers  recently  installed  in  this  trade  will  largely  displace  the  sailing  vessels  that  have  had  a 
practical  monopoly  of  the  traffic  for  a  half  century. 

Owing  to  the  large  annual  fluctuations  to  which  this  trade  has  been  subject,  an  average  of 
Pacific  entrances  from  Atlantic  poi'ts  and  Atlantic  entrances  from  Pacific  ports  during  the  last 
ten  3-ears  has  been  taken.  These  averages  combined  give  a  total  of  109,312  tons  per  year.  The 
Atlantic  entrances  averaged  26,323,  and  those  of  the  Pacific  82,989,  showing  that  Europe  is  the 
selling  market  of  the  Pacific  States  and  our  Atlantic  States  are  the  buying  market.  Two-thirds 
of  the  vessels  sailing  to  our  west  coast  from  our  Atlantic  seaboard  clear  from  our  west  coast  to 
Europe,  and  cross  thence  to  our  Atlantic  ports  to  load  for  the  Pacific  slope. 

SUMMARY. 

The  entrance  and  clearance  totals  for  the  various  categoi'ies  of  commerce  studied  in  the  pre- 
ceding pages  are  summarized  in  the  following  table.  It  will  be  remembered  that  the  figures 
were  for  the  latest  available  statistical  year,  which  in  most  instances  was  1899. 

Sumniary  of  entrances  and  clearances,  commerce  of  Europe  with  Pacific  America,  and  commerce  of  eastern  seaboard  of  the 

United  States  vAth  Pacific  countries. 

Europe  with^  Tons. 

Western  South  America 1,771,  8.58 

Western  Central  America  and  Mexico 140,  000 

Pacific  coast  of  United  States,  Britisli  Columbia,  and  Hawaii 642, 180 

Eastern  seal.)oard  of  United  States  with — 

Western  South  America  and  Hawaii -. 166,  364 

Pacific  coast  of  the  United  States 109, 312 

Trans- Pacific  countries 908, 140 

Panama  traflic  ( 1898) 336, 998 

Total 4,  074,  852 

The  total  of  the  above  summary,  4,074,852  tons  net  register,  comprises  the  vessel  tonnage 
of  the  trade  of  Europe  with  Pacific  America,  and  of  our  Atlantic  seaboard  with  Pacific  countries. 
Every  po.ssible  effort  has  been  made  to  analyze,  verify,  and  correct  the  statistical  data  consulted. 
It  was  thought  better  to  err,  if  at  all,  on  the  side  of  understatement. 

The  above  total  difiers  somewhat  from  the  total  published  in  the  preliminary  report  of  the 
Canal  Commission,  mainly  because  three  items  have  been  omitted  that  were  included  in  the 
former  statement.  The  sums  omitted  amount  to  471,290  tons  net  register.  Had  they  been 
included  the  vessel-tonnage  total  of  this  report  would  have  differed  from  that  of  the  preliminary 
report  by  only  35,986  tons,  the  total  here  given  being  that  much  less.  Since  publishing  the 
preliminary  report  it  has  been  possible  to  substitute  1899  figures  for  those  of  1898  for  a  few 
foreign  countries.  For  some  of  the  countries  the  figures  for  1899  were  larger  than  those  for 
1898,  but  in  the  case  of  British  Columbia  the  tonnage  for  1899  was  63,393  tons  less  than  1898. 

Attention  was  called  in  the  previous  chapter  to  the  abnormall}^  small  export  of  grain  from 
our  Pacific  coast  during  the  year  1899.  If  the  grain  exports  of  the  normal  year  1898  were 
substituted  for  those  of  1899,  the  above  vessel-tonnage  total  would  need  to  be  increased  over 
400,000  tons.  The  grain  exports  of  1898  exceeded  those  of  1899  by  612,874  cargo  tons,  and  this, 
according  to  the  ratio  of  cargo  tonnage  to  net  register  tonnage,  for  the  Pacific  coast  exports  as  a 
whole,  would  be  equivalent  to  408,723  vessel  tons. 

In  closing  this  discussion  of  vessel  tonnage  reference  should  be  made  to  the  fact  that  this 
chapter  has  not  considered  the  commerce  of  Europe  with  the  western  half  of  the  Pacific  Ocean, 
a  part  of  which,  it  is  believed,  for  reasons  elaborated  in  the  succeeding  chapter,  will  make  use  of 
the  American  canal  instead  of  the  Suez  or  Cape  of  Good  Hope  route.  In  stating  the  entire 
amount  of  vessel  tonnage  that  was  available  for  the  use  of  the  canal  in  1899  some  share  of  the 
European  commerce  now  using  the  Suez  or  rounding  the  C'ape  of  Good  Hope  should  be  included. 
What  that  share  should  be  is  considered  at  length  in  the  next  chapter. 

oThe  tonnage  totals  published  in  the  preliminary  report  of  the  Isthmian  Canal  Commission  included  both  the 
entrances  and  clearances  at  Panama. 


Chapter  XX. 

TRAFI'IC    DirVESTIGATION    BY  THE    NEW    PANAMA    CANAL    COMPANY— COMPARISON  01 
THE   RESULTS   OF  THE   THREE   INVESTIGATIONS. 

PLAN    OF    THE    INTESTIGATIOX. 

The  New  Panama  Canal  Company  divided  that  part  of  the  world's  commerce  capable  of  being 
affected  by  the  proposed  canal  into  the  fonr  groups  that  had  been  adopted  in  1890  by  the 
Commission  d'Etudes  appointed  1)}^  the  receiver  of  the  Compagnie  Universelle  du  Canal 
Interoceanique.  These  four  groups  were:  (1)  The  commerce  between  Europe  and  the  Pacific 
coast  of  the  American  continent;  (2)  the  commerce  between  Europe  and  the  Far  East — i.  e., 
China,  Japan,  Australasia,  and  Oceania,  and  the  French  and  Dutch  East  Indies;  (3)  the  commerce 
between  the  Atlantic  and  Pacific  coasts  of  America,  and  (4)  the  commerce  between  the  Atlantic 
coast  of  America  and  the  Eastern  countries  included  in  group  2. 

Briefly  stated,  the  plan  adopted  by  the  New  Panama  Canal  Company  to  determine  what  part 
of  the  world's  present  ocean  tonnage  would  make  use  of  an  American  interoceanic  canal,  was  to 
record  and  follow  the  movements  of  all  vessels  engaged  in  the  commerce  being  carried  on  between 
the  Atlantic  and  Pacific  oceans.  This  record  of  vessel  movements  was  taken  from  Lloyd's  two 
publications,  the  Daily  Shipping  and  Mercantile  Gazette  and  the  Weekly  Shipping  Index,  where 
the  Canal  Company  was  able  to  secure  information  concerning  the  arrivals,  departures,  and 
whereabouts  of  all  ocean  vessels,  about  12,500  in  number,  as  their  records  subsequently  showed. 

During  the  j'ears  1895  and  1896  the  plan  followed  in  making  up  the  record  was  to  go  through 
each  issue  of  Lloyd's  daily  and  weekly  publications  and  place  against  each  vessel,  whose  route 
was  such  as  to  bring  it  within  one  of  the  four  groups  of  commerce  just  mentioned,  a  check 
indicating  to  which  group  the  ship  was  to  be  accredited. 

Lists  of  the  vessels  thus  checked  were  arranged  alphabetically,  showing  for  each  of  the  four 
classes,  and  for  sailing  vessels  and  steamers  separately,  the  facts  regarding  each  ship  that  were 
given  in  Lloj^d's  Gazette  and  Index.  These  eight  alphabetical  lists — four  for  steamers  and  four 
for  sailing  vessels — were  then  turned  over  to  draftsmen,  who  charted  the  movements  of  the 
vessels  named  in  the  eight  lists  by  usinof  sheets  of  paper  which  had  the  names  of  the  ships  in  a 
column  at  the  left,  and  which  were  divided  into  perpendicular  columns  headed  with  the  names  of 
the  twelve  months  and  with  the  weeks  of  the  year  by  number  from  one  to  fifty-two. 

The  movements  of  a  vessel  were  shown  on  the  sheet  by  entering  in  the  column  of  the  proper 
week  the  name  of  the  port  and  the  day  of  the  month  of  the  arrival  of  the  vessel  if  it  was  entering 
the  port,  or  of  the  departure  of  the  ship  if  it  was  clearing.  Horizontal  lines  were  drawn 
connecting  the  entries  of  clearances  with  those  of  arrivals.  During  1895  eight  sets  of  charts 
were  prepared,  sailing  vessels  and  steamers  being  separately  classified  according  to  the  four 
groups  into  which  the  commerce  being  studied  had  been  divided;  but  after  that  3'ear  the  groups 
of  commerce  were  shown  on  the  charts  b}^  using  four  difl'erent  colors  of  ci'aj'on,  and  only  two 
sets  of  charts  were  made,  one  each  for  sailing  vessels  and  steamers.  From  these  sets  of  charts, 
and  the  vessel  lists  from  which  the  charts  were  prepared,  it  was  an  easy  matter  to  make  an  annual 
computation  showing  the  steam  and  sail  tonnage  of  the  traffic  of  each  of  the  four  groups  of 
commerce. 

Experience  showed  that  the  plan  of  checking  off  and  copying  from  Lloyd's  lists  the  vessels 
according  to  groups  was  somewhat  defective,  because  on  the  charts  some  vessels  would  disappear 
from  one  group  and  appear  in  another  in  such  a  way  as  not  to  indicate  what  the  intermediate  move- 
ments of  the  vessel  had  been.  It  also  happened  that  some  vessels  disappeared  from  the  record  after 
they  had  touched  at  a  Pacific  port,  and  that  other  ships  appeared  on  the  record  as  clearing  from  a 
Pacific  port,  without  there  being  any  record  regarding  their  previous  voyages.  To  obviate  this 
defect  it  was  decided  at  the  beginning  of  1897  to  discontinue  checking  the  names  of  vessels  in 
the  Gazette  and  Index  and  preparing  lists  of  the  ships  thus  checked,  and  instead  of  doing  this 
work  to  make  a  card  catalogue  (fiches)  of  every  ship  named  in  the  Lloyd  publications.  In  this 
catalogue  each  ship  had  its  card,  and  on  this  card  all  desired  information  regarding  the  vessel 
was  entered  and  a  record  kept  of  the  movements  of  the  ship.  The  graphic  charts  of  the  voyage? 
of  the  vessels  were  prepared  from  these  cards. 
358 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


359 


During  the  year  1897  the  canal  company  further  improved  its  methods  of  conducting  the 
traffic  investigation.  From  Lloyd's  Shipping  and  Mercantile  Gazette  tables  were  prepared  show- 
ing for  each  Pacific  port,  separately  for  steamers  and  sailing  vessels,  and  classified  according  to 
the  four  groups  of  commerce,  the  name.  Hag.  tonnage,  etc.,  of  all  the  vessels  entered  and  cleared. 
These  tables  gave  full  information  regarding  the  steam  and  sail  commerce  of  each  Pacific  port. 

These  tabular  statements  are  said  by  the  New  Panama  Canal  Company  to  have  "  confirmed 
the  correctness  of  the  former  work."  The  preparation  of  these  tables  also  *■'  established  the  fact 
that  the  graphic  method,  based  upon  the  use  of  the  Weekly  Shipping  Index,  which  has  the  disad- 
vantage of  requiring  much  more  time,  is  more  exact,  complete,  and  reliable."  The  company 
further  states: 

The  justification  of  the  method  of  statements  by  ports  is  tiiat  it  has  the  advantage  of  dividing  among  the  ports 
interested  the  world's  tonnage  stated  for  each  of  the  four  groups,  and  thus  faciUtates  the  study  of  the  results,  especially 
the  inquiry  concerning  that  part  of  the  traffic  with  ports  at  the  limit  of  the  canal's  zone  of  attraction.  This  method 
of  statements  was  employed  to  verify  the  statistics  of  the  year  1898. 

At  the  close  of  the  year  1898  the  traffic  of  the  j-ear  ISSS  was  studied  according  to  the  methods 
that  had  been  developed,  and  tables  were  made  comparing  the  years  1888  and  1898  to  show  what 
development  had  taken  place  during  the  decade  in  the  commerce  being  investigated.  The  tonnage 
movements  of  1899  have  also  been  chai'ted,  totalized,  and  tabulated.  The  following  table,  pre- 
pared bj^  the  New  Panama  Canal  Company  and  published  here  with  but  slight  changes  in  form, 
presents  the  results  of  the  elaborate  investigations  conducted  by  that  company.  The  table  shows 
the  steam  and  sail  tonnage  of  each  of  the  four  groups  of  commerce  for  the  calendar  years  1888, 
1895,  1896,  1897,  1898,  and  1899: 

Tonnage  of  vessels  engaged  in  trade  bebveen  the  Atlantic  and  Pacijic  oceans,  ISSS  ami  1S95  to  1899. 


Group  1. 

Europe  with 

Pacific 

America. 

Group  2. 
Europe  with 
the  Orient. 

Group  3. 
Between  At- 
lantic and  Pa- 
cific America. 

Group  4. 
.\tlantic  Amer- 
ica with  Orient. 

Total  for     . 
the  5'ear. 

1888: 

346,015 
1,744,661 

2, 396, 105 
1,669,759 

4,716 
217,597 

78,994 
681,877 

2,825,830 

4,303,894 

2,090,676 

4,055,864 

222,313 

760,871 

7,129,724 

1896: 

570,637 
2,130,876 

3,081,479 
1,087,2.50 

40,551 
243,209 

162,699 
721,626 

3,8.55,266 

Sail 

4,182,861 

2,701,513 

4,168,729 

283,760 

884,125 

8,038,127 

1896: 

601,157 
1,944,207 

3, 430, 386 
891,404 

68,420 
188,445 

266,364 
792,214 

4,366,317 

Sail 

3,816,270 

Total 

2,545,364 

4,321,790 

266,865 

1,058,568 

8,182,587 

1897: 

*601,784 
1,677,461 

3,746.397 
976,480 

58,446 
164,891 

271,455 
789,694 

4,677,082 

3,608,626 

2,279,245 

4,721,877 

223,337 

1,061,149 

8,285,608 

1898: 

648. 56S 
1,680,573 

3,669,091 
948,222 

91,082 
148,204 

441,246 
835,682 

4,849,987 

Sail 

3, 612, 681 

2,329,141 

4,617,313 

239,286 

1,276.928 

8,462,668 

1899: 

570,997 
1,804,074 

4,059,392 
1,063,862 

94,319 
107,830 

699,913 
571,444 

5,424,621 

Sail 

3,537,210 

Total 

2,375,071 

5,113,254 

202,149 

1,271,357 

8,961,831 

The  total  traffic  in  1899  was  larger  than  in  1898.  This,  however,  was  not  true  of  all  groups, 
there  having  been  a  slight  decline  in  groups  3  and  4.  The  decline  in  the  vessel  movements  of 
group  3  during  1899  as  compared  with  1808  was  due  to  scarcity  of  ships  and  to  the  sale  of  a  large 
line  of  sailing  vessels  that  had  been  engaged  in  this  traffic.  During  the  year  1900  a  line  of 
steamers,  comprising  seven  ships,  capable  of  handling  126,000  tons  of  cargo  each  way  annually, 
was  inaugurated  to  take  the  place  of  the  sailing  vessels  that  were  sold  the  <year  before.  The 
slight  decrease  in  the  tonnage  of  group  4  was  likewise  due  to  the  high  ocean  rates  arising  from 
the  scarcity  of  ships.  The  shipments  from  the  eastern  ports  of  the  United  States  to  the  Orient 
were  handled  more  largely  by  the  transcontinental  railroads  and  the  Pacific  steamers. 

The  commerce  included  in  groups  1,  3,  and  4  of  the  above  table  is  considered  as  certainly 
tributary  to  the  proposed  American  canal.      The  commerce  of  Europe  with  eastern  countries. 


360  PANAALi  CANAL  TRAFFIC  AND   TOLLS. 

group  2,  will,  for  the  greater  part,  make  use  of  the  Suez  route,  but  a  portion  of  the  traffic  will 
fand  tae  American  waterway  more  advantageous.  What  share  of  the  total  for  group  2  may 
properly  be  credited  to  the  westerly  canal  route  must  be  a  matter  of  estimate.  A  careful  review 
of  the  existing  trade  routes  and  a  consideration  of  the  forces  that  will  affect  the  ocean  routes 
after  the  American  canal  has  been  opened  leads  to  the  conclusion  that  a  portion  of  Europe's 
exports  to  the  western  half  of  the  Pacific  Ocean — that  is,  to  Japan,  Australia,  and  Oceania — will 
be  sent  through  the  American  canal. 

CONCERNING    USE    OF   AMERICAN    CANAL    BY    COMMERCE    OF    EUROPE    WITH    ORIENT. 

The  volume  of  traffic  to  Europe  from  the  East  being  larger  than  that  outbound  from  Europe, 
vessels  are  obliged  to  sail  both  for  the  eastern  part  of  the  United  States  and  for  eastern  countries 
lightly  loaded,  and  sometimes  in  ballast.  Our  exports  from  Atlantic  ports  to  Australia,  Oceania, 
and  the  Orient  are  in  part  carried  by  ships  that  cross  the  Atlantic  in  ballast.  When  the  Amer- 
ican canal  has  become  available  vessels  will  probably  not  infrequently  take  on  a  partial  cargo  in 
Europe  for  countries  in  the  western  half  of  the  Pacific,  and  also  take  freight  for  the  United  States, 
the  West  Indies,  Central  America,  or  Mexico;  that  is,  vessels  finding  difficulty  in  securing  car- 
goes outbound  from  Europe  will  sometimes  find  it  advantageous  to  proceed  to  the  East  by  way 
of  America  for  the  purpose  of  discharging  such  European-American  cargoes  as  may  be  secured, 
and  loading  at  one  or  more  American  ports  a  full  cargo  for  the  Pacific  port  or  ports  of  its  desti- 
nation. In  addition  to  permitting  vessels  in  Europe  to  unite  the  light  outbound  cargoes  for  the 
East  and  for  the  United  States,  and  enabling  them  to  secure  full  cargoes  in  America  for  the  East, 
the  westerly  route  by  way  of  the  American  canal  will  have  the  advantage  of  cheaper  coal,  and 
maj^  possibly  impose  lower  canal  tolls  upon  the  shipping  than  will  be  exacted  b}'  the  Suez  Canal. 
The  Suez  Canal  is,  and  doubtless  will  remain,  a  highway  managed  by  a  corporation,  whereas  the 
American  waterway  under  consideration  is  to  be  owned  and  operated  by  the  Government. 

The  distance  from  Liverpool  to  Sydney,  Australia,  by  way  of  the  Panama  Canal  and  Tahiti 
will  be  357  miles  greater  than  via  the  Suez,  Colombo,  Adelaide,  and  Melbourne,  but  this  disad- 
vantage of  the  westerly  course  will  be  partially,  if  not  quite,  offset  by  two  facts  favoring  the 
American  canal  route.  From  Liverpool  via  the  Cape  of  Good  Hope,  Adelaide,  and  Melbourne 
and  Sydney  is  634  miles  farther  than  by  way  of  the  Panama  Canal  and  Tahiti.  The  use  of  the 
westerly  route  will  enable  vessels  engaged  in  the  European-Australian  trade  to  avoid  the  exces- 
sive heat  of  the  Gulf  of  Aden  and  the  Red  Sea,  and  the  storms  of  the  tempestuous  Indian  Ocean. 
The  American  route,  also,  will  be  favored  by  the  fact  that  a  vessel  on  its  way  between  Liverpool 
and  the  isthmian  canal  will  have  to  go  but  31-i  miles  out  of  its  course  to  call  at  New  York,  next 
to  the  greatest  port  of  the  Avorld,  whence  outbound  cargoes  are  practically  alwaj^s  obtainable. 
With  the  advantages  of  cheaper  coal,  a  cooler  passage  in  the  Tropics,  quieter  seas,  and  the 
attractive  force  of  America's  heavy  tonnage,  the  American  isthmus  route  will  be  used  instead  of 
the  course  through  the  Suez  Canal  l)y  some  of  the  vessels  departing  from  Europe  for  Australia 
or  other  regions  on  that  side  of  the  Pacific  Ocean. 

Vessels  proceeding  from  Europe  by  way.  of  American  ports  and  the  isthmian  canal  to 
Oceania  and  the  East,  will  have  the  choice  of  returning  to  Europe  either  by  way  of  the  Suez  or 
by  way  of  the  American  route.  By  whatever  route  the  European  vessels  reach  the  oriental  and 
other  countries  of  the  western  Pacific,  the  route  by  which  they  return  to  Europe  will  be  deter- 
mined by  the  relative  opportunities  for  obtaining  cargo  by  way  of  the  Suez  and  American  routes, 
respectively. 

The  reasons  for  believing  that  a  portion  of  Europe's  imports,  from  the  western  half  of  the 
Pacific,  will  come  by  way  of  the  American  route  are  stronger  than  the  reasons  just  cited  regard- 
ing the  use  of  the  American  canal  for  the  European  export  trade.  A  vessel  finding  itself  in  the 
East  Indies,  Japan,  China,  or  Australia  may  either  take  on  cargo  for  Europe  and  -for  interme- 
diate points  along  the  Suez  route,  or  it  may  load  with  such  cargo  as  may  be  available  for  Europe 
and  American  countiies  and  proceed — in  most  cases  Init  partiallj^  loaded — across  the  Pacific  to 
the  western  coast  of  the  United  States,  where  a  great  abundance  of  cargoes  destined  for  Europe 
may  be  obtained,  or  the  ship  may  go  to  Central  America  and  West  Indian  ports,  where  a  fair 
amount  of  freight  for  Europe  will  usually  be  available,  or  the  vessel  ma}'  proceed  to  Chile  or 
some  other  Avest  South  American  country,  where  tliere  is  always  a  heavy  amount  of  outbound 
traffic.  Besides  being  certain  of  securing  freight  from  South  America  or  North  America  for 
Europe,  a  vessel  returning  from  the  Orient  by  the  American  canal  will  also  have  the  advantage 
above  referred  to  of  being  able  to  secure  coal  more  cheaply  than  it  can  be  obtained  along  the 
Suez  line. 

It  would  seem  probable,  upon  a  priori  grounds  that  vessels  leaving  Europe,  whether  by  way 
of  the  Suez  or  by  way  of  the  American  canal,  will  frequently  find  the  return  trip  via  America 
more  profitable  than  by  the  I'oute  in  the  opposite  direction.  This  general  proposition,  moreover, 
seems  to  accord  with  the  evidence  regarding  the  present  round-the-world  movement  of  vessels. 


PANAJMA  CANAL  TRAFFIC   AND   TOLLS. 


361 


The  entrance  and  clearance  statistics  of  the  vessels  engaged  in  the  foreign  trade  of  the  west  coast 
of  North  and  South  America  indicate  that  a  large  number  of  vessels  now  going  out  from  Europe 
toward  the  E:ist  return  from  the  west. 

EVIDENCE    OF    INCREASING    NUMBER   OF   ROUND-THE-WORLD   VOYAGES. 

In  the  trade  of  the  Pacific  coast  of  the  United  States  with  Atlantic  foreign  countries  the  ton- 
nage of  the  entrances  direct  from  the  Atlantic  was  63.8  per  cent  of  the  clearances  to  those  ports 
in  1889;  but  in  1898  the  entrances  direct  from  the  Atlantic  were  but  25.3  per  cent  of  the  clear- 
ances to  the  foreign  countries  of  that  section.  Stated  otherwise,  in  1889  something  over  one-third, 
and  in  1898  about  three-fourths  of  the  vessel  tonnage  emplo.yed  in  carrying  our  west  coast  trade 
to  Europe  arrived  at  our  western  ports  from  other  than  European  countries. 

Many  vessels  take  cargo  from  Europe  via  the  Good  Hope  route  to  Australia,  or  other  eastern 
countries,  whence  they  proceed  across  the  Pacific  in  ballast,  or  with  coal  to  our  western  ports  or 
to  Chile.  A  to  and  fro  movement  of  vessels  between  ports  situated  at  great  distances  from  each 
other  is  frequently  unprofitable  unless  there  are  about  equal  quantities  of  merchandise  to  be 
carried  both  wavs,  and  whenever  possible,  chartered  vessels— and  at  the  present  time  they  carry 
most  of  the  world's  ocean  freight— seek  to  avoid  voyages  in  ballast  by  moving  as  much  of  the 
time  as  possible  in  the  direction  of  the  larger  currents  of  traffic.  Our  Pacific  coast  imports  but 
little  and  exports  great  quantities,  consequently  vessels  endeavor  to  approach  that  section— and 
the  same  is  true  of  Chile— from  regions  having  a  larger  volume  of  inl)ound  trafiic. 

In  1888  more  ships  entered  Chile  from  North  Atlantic  countries,  Europe,  and  the  United 
States  than  cleared  for  them,  but  in  1898  the  reverse  was  the  case.  The  figures  of  the  entrances 
and  clearances  of  the  Chilean  trade  with  Europe  and  our  Atlantic  coast  for  the  years  1888  and 
1898,  as  recorded  by  European  countries  and  the  United  States,  are  .shown  by  the  following  table: 

Chilean  entrances  and  clearances,  direct  trade  with  Europe  and  east  coast  of  United  States,  l&'SS,  1898. 


Entrances  767,000        891,000 

ci^^^U.^::::::::::::::::::;:::::::::::::: 625,000    982,000 


The  ships  for  the  exports  of  Chile  to  Europe  and  the  United  States  were  all  drawn  from 
Atlantic  countries  in  1888,  and,  in  addition,  vessels  entered  Chile  from  the  Atlantic  and  cleared 
for  Pacific  countries,  but  in  1898  the  vessels  for  the  exports  from  Chile  to  the  North  Atlantic 
must  have  been  drawn  partlv  from  Pacific  ports.  According  to  the  table,  the  tonnage  entering 
Chile  from  the  North  Atlantic  was  122.7  per  cent  of  the  tonnage  that  cleared  for  that  section  in 
1888,  whereas  the  per  cent  was  only  89.7  in  1898,  an  apparent  decline  of  28.5  per  cent  in  the 
ratio.  This  change  was  mainly  due'  to  a  movement  of  vessels  from  Europe  and  eastern  United 
States  to  Australia  and  thence  to  Chile. 

In  compiling  the  above  table  the  European  statistics  of  entrances  and  clearances  have  been 
taken  without  making  reductions  to  eliminate  duplications.  Accordingly  neither  the  figures  nor 
the  percentages  are  strictly  accurate.  For  the  purpose  of  the  present  argument,  however,  the 
value  of  the  table  is  not  lessened  by  the  duplications, contained  in  the  statistics,  because  a  study 
of  the  European  records  of  entrances  and  clearances  shows  very  clearly  that  there  is  a  greater 
duplication  of  clearances  than  of  entrances.  If  the  duplications  in  the  figures  of  the  above  table 
were  deducted,  the  tonnage  entering  Chile  from  the  North  Atlantic  would  bear  an  even  smaller 
ratio  to  the  cleai-ances  to  that  section  than  is  stated  in  the  table. 

Further  evidence  regarding  the  increasing  movement  of  vessels  around  the  world  is  shown 
by  the  statistics  of  entrances  and  clearances  of  the  xVtlantic  coast  trade  of  the  United  States  with 
South  America.  In  the  table  just  given  above  the  North  Atlantic  trade  with  Chile  is  anal,yzed. 
The  following  table  contains  the  figures  of  the  entrances  and  clearances  of  the  trade  of  the 
Atlantic  and  Gulf  seaboards  of  the  United  States  with  the  entire  west  coast  of  South  America: 


Atlantic  coast  entrances  and  clearances,  trade  of  United  States  with  western  South  . 

Imerica. 

Year. 

Entrances. 

clearances. 

44,454 
78,930 

27,176 

37,  .560 

77.5 

38.2 

362  PAN.yHA  CANAL  TRAFFIC  AND  TOLLS. 

Our  east  coast  entrances  from  western  South  America  increased  during  the  decade  preceding 
1899  more  than  the  clearances  did.  The  clearances  to  South  America  were  less  than  half  the 
entrances  from  that  section  in  1899. 

Mention  was  made  of  the  fact  that  vessels  clearing  from  the  North  Atlantic  to  Australia  and 
other  eastern  countries  frequently  return  by  crossing  the  Pacilic.  In  1899, 155,000  tons  of  vessels 
cleared  from  the  eastern  ports  of  the  United  States  for  Australia  and  New  Zealand,  and  the  direct 
entrances,  all  from  New  Zealand,  were  only  4,912  tons.  This  does  not  indicate  that  practically 
all  the  outbound  vessels  returned  by  way  of  the  Pacific,  because  manj',  although  not  all,  of  the 
steamers  returned  by  way  of  Java  or  Europe  and  were  entei'cd  as  from  those  countries.  Some 
of  the  steamers  and  nearly  all  of  the  sailing  vessels  returned  from  Australia  to  the  United  States 
by  way  of  the  west  coast  of  North  or  South  America.  Under  present  conditions  the  tendency  is 
for  an  increasing  number  of  vessels  starting  out  from  Europe  and  the  eastern  part  of  the  United 
States  toward  the  East  to  return  to  their  starting  point  by  a  continuous  voj'age  around  the  world. 

The  effect  of  the  isthm'ian  canal  upon  ocean  routes  under  consideration  will  be  a  doulile  one. 
It  will  facilitate  a  round-the-world  movement  of  i  oinmerce,  and  also  establish  conditions  that  may 
cause  vessels  to  pass  from  Europe  as  well  as  from  the  eastern  part  of  the  United  States,  through 
the  American  canal  to  Oriental  countries,  to  return,  as  traffic  inducements  may  determine,  by  way 
of  the  Suez  Canal  or  across  the  Pacific  to  the  west  coast  of  North  and  South  America,  and  thence 
to  the  point  of  departure.  By  exercising  these  influences  upon  the  world's  commercial  routes  the 
canal  will  secure  a  part  of  the  trade  of  Europe  with  countries  in  the  western  half  of  the  Pacific. 

TONNAGE   OF   AVAILABLE    CANAL    TRAFFIC. 

The  records  kept  bj'  the  Panama  Company  show  that  during  the  calendar  year  1899  the 
commerce  of  groups  1,  3,  and  4  might  have  contributed  3,818,577  tons  net  register  to  the  traffic 
of  the  isthmian  canal.  This  sum  does  not  include  any  vessel  tonnage  for  the  commerce  crossing 
the  Isthmus  of  Panama.  The  addition  of  that  tonnage,  336,998,  raises  the  total  to  4,185,575.  The 
entrances  and  clearances  for  the  commerce  of  the  eastern  seaboard  of  the  United  States  with 
Pacific  America  and  with  Australia,  Oceania,  the  Philippines,  Japan,  China,  and  Siberia,  and  the 
vessel  movements  Itetween  the  western  coasts  of  the  American  continents  and  the  North  Atlantic 
American  and  European  ports  were  found  to  amount  to  4,074,852  vessel  tons  net  register, 
including  the  336,998  tons  for  the  commerce  crossing  the  Isthmus  of  Panama. 

In  addition  to  this  tonnage,  which  comprises  only  traffic  originating  or  terminating  in  America, 
there  should  be  included  most  of  the  commerce  of  Europe  with  New  Zealand  and  the  other  islands 
of  the  Pacific  east  of  Australia.  New  Zealand  will  be  1,318  miles  nearer  Liverpool  by  the  Panama 
Canal  than  via  the  Suez  route  and  2,222  miles  nearer  than  by  waj'  of  Good  Hope.  The  distances 
to  Liverpool  from  the  most  important  groups  of  South  Pacific  islands  north  of  New  Zealand  will 
be  from  500  to  5,500  miles  less  via  the  isthmian  canal  than  by  way  of  Suez.  The  entrances  and 
clearances  of  New  Zealand's  trade  with  northwestern  Europe — France  and  countries  farther  north — 
amounted  to  481,178  tons  net  register  in  1899,  and  the  commerce  of  that  part  of  Europe  with  the 
other  islands  of  the  South  Pacific  east  of  Australia  to  181,743  tons.  Of  this  total  traffic  of  662,921 
tons,  probably  not  less  than  500,000  might  have  advantageously  used  an  isthmian  canal,  and  this 
amount  should  be  added  to  the  tonnage  of  the  canal  traffic  originating  or  terminating  in  America. 
This  makes  the  total  obtained  by  the  Commission's  investigation  of  the  tonnage  that  might  have 
used  an  isthmian  canal  in  1899,  4,574,852  tons  net  register,  and  the  total  obtained,  by  adopting  the 
New  Panama  Canal  Company's  figures  for  the  traffic  originating  or  terminating  in  America, 
4,685,675  tons. 

The  above  totals  for  the  tonnage  that  might  have  ;ised  an  isthmian  canal  in  1899  do  not 
include  any  of  Europe's  trade  with  Australia  and  Japan,  a  part  of  which,  for  reasons  stated 
above,  would  have  used  an  isthmian  waterway.  The  distances  from  Great  Britain  to  Sydne}'  and 
Yokohama  by  the  Suez  and  Panama  canal  routes  are  approximately  equal,  and  vessels  going  by 
America  in  either  direction  en  route  between  Europe  and  Japan  or  Australia  will  pass  regions 
from  which  there  is  a  heavy  export  tonnage.  If  it  be  assumed  that  only  10  per  cent  of  the  vessel 
tonnage  of  the  Australian  trade  with  the  ports  of  northwestern  Europe,  and  only  5  per  cent  of 
the  tonnage  of  the  Japanese  commerce  with  those  ports,  would  have  taken  an  American  canal 
route,  the  totals  for  1899  should  be  increased  316,223  tons,  rnd  be  raised  from  4,574,852  to 
4,891,075  tons,  and  from  4,685,575  to  5,001,798  tons,  or  to  approximately  5,000,000  tons. 

GROWTH    OF   TRAFFIC,  1888-1898. 

The  total  vessel  tonnage  of  the  four  groups  included  in  the  tables  prepared  by  the  New 
Panama  Canal  Company  rose  from  7,129,724  tons  net  register  in  1888  to  8,462,668  tons  in  1898, 
an  increase  of  18.7  per  cent.  There  was  a  large  increase  in  the  commerce  of  groups  1  and  4. 
The  rapid  development  of  the  trade  of  Europe  with  the  west  coast  of  the  Americas,  particularly 


PANMLi  CA^fAL  TRAFFIC  AND   TOLLS. 


363 


m  Chilean  nitrates,  has  been  dwelt  upon  elsewhere.  The  commerce  of  the  Atlantic  coast  of 
America  with  the  Orient,  group  4,  expanded  largely  during  the  decade  in  spite  of  the  hindrance 
imposed  by  the  length  of  the  present  transportation  routes. 

The  ocean  commerce,  the  tonnage  of  which  is  comprised  in  group  3,  that  is  to  say,  the  trade 
between  the  two  American  seaboards,  increased  but  slightl}"  during  the  decade;  but  this  total  of 
less  than  a  quarter  of  a  million  tons  includes  only  the  tonnage  of  vessels  which  actually  make 
the  trip  between  the  Atlantic  and  the  Pacific  oceans.  It  does  not  comprise  the  traffic  which  now 
moves  across  the  Isthmus  of  Panama.  The  traffic  around  South  America  was  less  in  1899  than  it 
had  been  in  previous  j^ears,  the  reason  for  this  being  that  the  sailing  vessels  that  had  been  engaged 
in  the  trade  between  our  two  coasts  were  sold  for  the  purpose  of  substituting  steamei's.  Those 
steamships  were  all  in  service  before  the  end  of  1901,  and  the  tonnage  was  then  greater  than  it  was 
previous  to  the  year  1899.  After  the  isthmian  canal  has  been  in  use  for  a  few  years  the  commerce 
of  group  3  will  probably  be  as  large  as  that  of  anj'  other  one  of  the  four  groups,  because  it  is  this 
group  in  which  the  coasting  trade  between  the  two  seaboards  of  the  United  States  will  fall.  The 
present  small  proportions  of  this  trade  between  the  two  coasts  of  the  Americas  and  the  slow  rate 
of  its  increase  indicate  an  important,  although  not  the  only,  commercial  reason  why  the  United 
States  proposes  to  construct  an  isthmian  canal. 

In  the  following  table  the  tonnage  of  1888  is  compared  with  that  of  1898,  and  the  number  of 
steamers  and  sailing  vessels  engaged  in  the  commerce  of  each  group  is  indicated : 

Comparison  of  the  tonnage  of  ISSS  and  189S. 


Group  1.  Europe 

with  Pacific 

America. 

Group  2.  Europe 
with  the  Orient. 

Group  3.  Between 
Atlantic  and  Pa- 
cific America. 

Group  4.  Atlantic 

.Imerica  with 

Orient. 

Total  for  the  year. 

Num- 
ber. 

Tons. 

Num- 
ber. 

Tons. 

Num- 
ber. 

Tons. 

Num- 
ber. 

Tons. 

Num- 
ber. 

Tons. 

1888: 

215 
1,633 

346,015 
1,744,661 

1,275 
1,595 

2,396,105 
1,659,759 

7 
182 

4,716 
217, 597 

46 
571 

78, 994 
681,877 

1,513 
3,981 

2,825,830 
4,303,894 

1,848 

2,090,676 

2,870 

4,0.55,864 

189 

222,313 

617 

760,871 

5,524 

7,129,724 

1898: 

265 
1,101 

648,568 
1,680,573 

1,448 
743 

3,669,091 
948, 222 

57 
104 

91,082 
148,204 

202 
527 

441, 246 
835,682 

1,972 
2,475 

4,849,987 
3,612,681 

Sail 

Total 

1,366 

2,329,141 

2,191 

4,617,313 

161 

239,286 

729 

1,276,928 

4,447 

8,462,668 

Per  cent  of  increase  or  decrease  1888- 
1898: 

+ 

87.4 
a3.6 

+ 

63.1 
a  42. 8 

+ 

1831 
a  31. 9 

+ 
+ 

458 
22.6 

-1- 

71.3 
a  16.0 

Sail 

Total 

+ 

11.4 

+ 

13.8 

+ 

7.6 

+ 

67.8 

-1- 

18.7 

_  In  showing  the  growth  in  the  commerce  of  these  four  groups  individually  and  collectively 
during  the  decade  1888  to  1898,  the  figures  of  the  above  table  afl'ord  the  basis  for  reasoning 
regarding  the  probable  amount  of  tonnage  that  will  be  ready  to  use  the  canal  at  the  time  of  its 
probable  completion,  but  a  consideration  of  this  is  reserved  for  a  separate  section,  where  all  the 
data  bearing  upon  the  subject  are  analytically  presented. 

There  are  two  other  facts  shown  by  this  table  that  are  of  indirect  importance  in  connection 
with  the  traffic  of  an  isthmian  canal.  One.  is  that  the  increased  traffic  of  1898 — 18.7  per  cent 
larger  than  the  tonnage  of  1888 — was  carried  in  1,077  fewer  vessels  than  were  used  ten  3'ears 
before.  The  number  of  ships  decreased  19.5  per  cent  during  the  decade,  thus  affording  a  good 
illustration  of  the  well-known  fact  that  the  size  of  ocean  vessels  is  growing  rapidly  larger.  The 
average  net  register  of  the  vessels  engaged  in  the  four  groups  of  commerce  was  1,291  tons  in 
1888.  The  steamers  at  that  time  averaged  1,831  tons  net  register.  In  1898  the  average  for  all 
vessels,  both  steam  and  sail,  was  1,903  tons  net  register  and  for  steamers  2,460  tons. 

THE    SUBSTITUTION    OF    STEAMERS   FOR   SAILING   VESSELS. 

The  figures  contained  in  the  table  also  indicate  the  rapidity  and  extent  to  which  the  steamer 
is  supplanting  the  sailing  vessel.  The  table  shows  that  the  sailing  vessel  lost  ground  most 
rapidly  in  the  commerce  of  group  2,  where  the  Suez  route  has  come  to  be  the  main  traffic 
highway.  These  facts  regarding  the  growth  of  steam  tonnage  and  the  declining  use  of  the  sailing 
vessel  are  graphically  shown  in  the  accompanying  charts,  which  indicate  for  each  of  the  four 


364  PANAilA  CANAL  TRAFFIC   AND  TOLLS. 

groups  the  changes  that  have  taken  place  in  both  steam  and  sail  tonnage.     The  first  chart  appiii 
to  sailing  vessels,  the  second  to  steamers,  while  in  the  third  the  changes  in  the  total  tonnage, 
steam  and  sail  combined,  are  represented. 

COMPARISON   OF   THE    EESHLTS   OF   THE   THREE   TRAFFIC    INVESTIGATIONS. 

Having  now  set  forth  the  results  of  three  separate  investigations  instituted  to  measure  the 
volume  of  the  existing  commerce  that  would  make  use  of  an  isthmian  canal  were  such  a  waterway 
in  existence,  it  will  be  profitable  to  compare  the  results  of  the  three  inquires  to  see  whether  they 
tend  to  stregthen  each  other,  or  whether  they  are  so  dLfl:erent  as  to  cast  doubt  upon  the  accuracy 
of  any  or  all  of  the  three  studies.  The  three  investigations  were  made  not  only  without  reference 
to  each  other,  but  also  according  to  entirely  different  methods.  Two  of  the  investigations  were 
made  by  the  Isthmian  Canal  Coimiiission,  and  the  other  under  the  direction  of  the  New  Panama 
Canal  Company.  It  is  not  often  in  statistical  and  economic  investigations  that  such  an  oppor- 
tunity for  checking  up  results  is  afforded  as  is  possible  in  the  present  instance. 

In  the  chapter  on  cargo  tonnage  it  was  found  that  the  freight  tonnage  of  the  trade  between 
Europe  and  Western  America,  and  the  tonnage  going  by  water  between  the  eastern  seaboard  of 
the  United  States  and  Pacific  countries  amounted  to  6,703,608  tons  in  1899.  The  total  entrances 
and  clearances  of  the  vessels  engaged  in  this  trade  at  that  time  equaled  3,965,5-iO"  tons  net 
register.  This  would  make  the  average  ratio  of  cargo  tonnage  to  net  register  tonnage  1.69.  The 
records  of  vessel  movements  kept  by  the  iS'ew  Panama  Canal  Company  show  a  tonnage  of  3,6-16,-128 
net  register  tons  during  the  calendar  year  1899  for  the  commerce  of  groups  1  and  -i,  which  cor- 
respond in  general,  although  not  exactly,  with  the  trade  included  in  the  above  cargo  tonnage  total. 
The  ratio  of  cargo  tonnage  to  the  vessel  tonnage  of  groups  1  and  i  is  1.83.  This  is  a  somewhat 
higher  ratio  than  that  between  the  cargo  tonnage  and  vessel  tonnage  of  entrances  and  clearances. 

The  tables  prepared  by  the  New  Panama  Canal  Company  do  not  include  the  vessel  tonnage 
of  the  trade  at  Panama.  Their  method  of  recording  the  movements  of  vessels  passing  from  ocean 
to  ocean  and  totalizing  those  movements  naturally  would  not  take  account  of  the  traffic  at  Panama. 
In  the  tonnage  total  of  entrances  and  clearances  obtained  by  the  Isthmian  Canal  Commission,  the 
Panama  tratfic  was  reckoned  to  be  336,998  tons  net  register.  If  this  sum  be_  added  to  the  vessel 
tonnage  total  of  groups  1,  3,  and  4  and  the  cargo  tonnage  be  divided  by  this  larger  figure,  the 
ratio  becomes  1.60. 

The  "  dead-weight"  cargo  carrying  capacity  of  American  schooners  of  500  to  2,000  tons  net 
register  averages  about  66  per  cent  more  than  the  net  register,  but  this  ratio  varies  greatly  with 
different  vessels.  The  ordinary  modern  freight  steamer  when  fully  loaded  will  carry  about  3.25 
tons  of  cargo  for  each  ton  net  register. 

Vessels  are  not  fully  loaded  on  all  voyages.  Some  are  obliged  to  make  trips  in  ballast  in 
search  of  cargo,  and  many  more  are  but  partially  laden  on  the  outbound  or  return  voyage  of  a 
round  trip.  There  are  veiy  few  ports  of  the  world  where  the  volumes  of  exports  and  imports 
are  equal.  Great  Britain  buys  a  much  larger  bulk  of  commodities  than  she  sends  out.  The 
opposite  is  true  of  the  United  States  and  western  South  America.  Consequently  the  average 
cargoes  of  ocean  vessels  engaged  in  international  trade  are  much  less  than  their  maximum  carry- 
ing capacity. 

The  ratio  of  cargo  to  net  register  tonnage,  obtained  above  by  dividing  the  total  available 
canal  freight  tonnage  by  the  corresponding  net  vessel  tonnage,  are  about  what  might  be  expected 
on  a  priori  grounds.  The  fact  that  these  ratios  are  apparently  correct  is  not  a  definite  proof  of 
■jhe  accuracy  of  the  tonnage  totals  compared,  but  it  is  corroborative  evidence.  If  any  one  of 
these  three  "totals  compared  were  grossly  in  error,  there  could  not  be  such  close  correspondence 
in  the  ratios. 

The  total  of  entrances  and  clearances  in  the  trade  of  the  year  1899  between  Europe  and 
Western  America  and  between  the  Eastern  United  States  and  Pacific  countries,  4,074,852  tons,  is 
somewhat  less  than  the  New  Panama  Canal  Company's  total  of  vessels  engaged  in  this  commerce, 
if  the  traffic  at  Panama  be  added  to  their  figure  for  groups  1,  3,  and  4.  The  tonnage  of  these 
three  groups  during  the  calendar  year  1899  was  3,848,577,  and  this  plus  the  entrances  at  Panama 
in  1898,  336,998  tons  (the  vessel  tonnage  adopted  for  the  entire  Panama  traffic),  amounts  to 
4,185,575  tons.  .    . 

A  more  detailed  comparison  of  the  tonnage  figures  of  tables  prepared  by  the  Commission 
with  those  made  by  the  New  Panama  Canal  Company  would  show  that  the  totals  for  the  two 
coasts  of  America  are  not  very  different.  It  is  uncertain  whether  the  trade  of  Hawaii  is  included 
in  group  3  of  the  Panama  Company's  tonnage  table.     If  it  is,  the  Commission's  figures  are  larger; 

"This  is  4,074,852  tons  minus  109,312  tons,  the  coasting  trade  between  our  two  seaboards.  The  6,703,608  tons  of 
cargo  do  not  include  any  of  our  coasting  trade,  hence  the  vessel  tonnage  total  is  reduced  before  comparison  is  made 
wiui  the  total  cargo  tonnage. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  365 

if  Hawaii  is  not  comprised  in  group  3,  its  inclusion  there  would  make  the  Panama  Company's 
figures  greater.  For  the  trade  between  Euroi:)e  and  the  west  coast  of  the  Americas  the  Commis- 
sion's total  is  somewhat  larger  than  the  Panama  Company's — 178,967  tons  if  the  trade  of  Hawaii 
be  included  in  the  Commission's  figures,  and  153,935  tons  if  omitted.  If  group  3  does  not  include 
the  Hawaiian  commerce,  the  vessel  tonnage  of  that  commerce  should  be  subtracted  from  the  fig- 
ures of  "entrances  and  clearances"  before  the  comparison  is  made.  Concei'ning  this  difference 
of  154,000  or  179,000  tons,  between  totals  approximating  two  and  a  half  millions,  it  should  be  said 
that  the  periods  covered  by  the  two  totals  are  not  identical,  and  that  the  two  methods  of  determ- 
ining vessel  movements  could  hardly  be  expected  to  j'ield  exactly  the  same  results.  Vessels  do 
not  always  make  the  port  they  clear  for.  Accidents  may  prevent,  or  telegraphic  orders  from  the 
owner  or  charterer  may  change  the  course  of  the  vessel. 

It  is  in  the  vessel  tonnage  of  the  commerce  between  the  eastern  American  seaboard  and  the 
countries  of  the  western  part  of  the  Pacific  (i.  e.,  the  Far  East),  that  the  largest  difierence  exists 
between  the  figures  of  the  Panama  Companj^  and  the  Commission.  The  total  of  group  ■!  in  the 
calendar  3'ear  1899  was  1,^71,357,  while  the  total  of  entrances  and  clearances  accepted  for  the 
fiscal  3'ear  ending  June  30,  1899,  by  the  Commission,  for  the  trade  between  the  eastern  seaboard 
of  the  United  States  and  the  western  Pacific  countries  was  908, liO  tons  net  register.  This 
amount,  it  will  be  recalled,  is  twice  the  tonnage  of  vessels  clearing  direct  from  the  Atlantio 
seaboard  to  Japan,  Siberia,  China,  the  Philippines,  and  Australasia.  Group  -i  of  the  French 
tables  includes  some  commerce  (that  of  Singapore  and  the  Dutch  East  Indies)  not  comprised  in 
the  Commission's  figures  for  the  trade  between  our  eastern  seaboard  and  trans-Pacific  countries. 
Moreover,  a  complete  statement  of  the  vessel  tonnage  of  this  commerce  can  not  be  made  from 
our  statistics  of  entrances  and  clearances,  because  a  share,  not  only  of  the  commodity  trafhc,  but 
also  of  the  vessel  tonnage  of  this  commerce,  is  credited  in  our  statistical  records  to  our  trade 
with  Europe.  It  is  quite  possible  that  the  vessel  tonnage  engaged  in  the  commerce  between  our 
eastern  seaboard  and  the  countries  of  the  western  Pacific  is  somewhat  greater  than  908,140  tons 
net  register.  Group  4  applies  to  the  commerce  between  the  entire  east  coast  of  the  American 
continent  and  the  countries  of  the  western  Pacific;  but  there  can  be  but  very  little  vessel  move- 
ment between  the  Far  East  and  any>Atlantic  American  countries  other  than  the  United  States. 

The  only  other  tonnage  item  requiring  mention  in  this  comparison  is  that  of  the  commerce  at 
the  city  of  Panama  referred  to  above.  The  total  of  entrances  and  clearances,  as  determined  by  the 
Commission,  credit  that  traffic  with  336,998  vessel  tons  net  register;  whereas  the  methods  in 
accordance  with  which  the  calculations  of  the  New  Panama  Canal  Company  were  made  were 
such  as  not  to  include  that  tonnage. 

The  results  of  the  three  traffic  investigations  are  such  as  to  affirm  the  essential  accuracj^  of 
each.  The  ratio  between  cargo  tonnage  and  vessel  tonnage  appai'ently  accords  with  the  facts  of 
ocean  commerce.  In  view  of  the  complexity  of  the  statistical  problem,  the  difference  in  the 
methods  of  dealing  with  the  problem,  and  the  slight  difference  in  periods  covered,  the  vessel 
tonnage  totals  obtained  by  the  Commission's  investigation  of  entrances  and  clearances,  and  the 
New  Panama  Company's  record  of  vessel  movements  correspond  as  closel}-  as  could  be  expected. 


Chapter  XXI. 
GROWTH  OF  CANAL  TRAFFIC,   1899  TO  1914  AND  1914  TO  1924. 

The  factors  affecting  the  growth  of  commerce  are  so  numerous  and  so  interrelated  that  it  is 
difficult  to  estimate  the  growth  in  traffic  that  will  take  place  during  the  period  that  must  intervene 
before  an  isthmian  canal  can  be  read\'  for  use.  The  only  basis  of  calculation  is  the  increase  of 
the  past  under  the  conditions  of  production  and  transportation  and  the  requirements  of  interna- 
tional trade  that  then  prevailed.  All  of  these  conditions  are  constantly  changing  and  thereby 
affecting  the  volume  and  nature  of  the  commodities  exchanged,  and  the  routes  followed  by  the 
commerce  of  the  world. 

Of  one  thing,  however,  there  can  hardly  be  any  uncertainty,  commercial  pi'ogress  during 
the  near  future  will  be  fullj-  as  rapid  as  it  has  been  the  past  ten  or  twenty  years.  The  demands 
of  consumers  are  everj'where  expanding,  and  sections  like  Africa  and  eastern  Asia,  that  have 
thus  far  had  but  slight  contact  with  the  rest  of  the  world,  are  being  I'apidly  brought  within  the 
sphere  of  international  commerce.  The  costs  of  transportation,  both  inland  and  maritime,  con- 
tinue to  decline  with  the  improvement  of  mechanical  appliances  and  the  accumulation  of  capital 
seeking  profitable  investment.  Nations  and  individuals  are  devoting  themselves  with  energy  to 
the  extension  of  trade  and  commerce.  This  is  particularlj^  true  of  the  people  and  Government 
of  the  United  States. 

Such  being  the  case,  the  probable  tonnage  of  the  traffic  that  will  be  available  for  an  isthmian 
canal  at  the  time  of  its  completion,  will  doubless  be  conservatively  estimated  by  predicating  a 
continuation  of  the  rate  of  increase  that  has  prevailed  during  the  past  decade.  In  all  probability 
the  growth  will  be  more  rapid  in  the  future;  it  surely  will  not  be  slower. 

KATE   OF   INCREASE    SHOWN   BY   TABLES   OF   THE   PANAMA    CANAL   COMPANY. 

The  statisticians  of  the  New  Panama  Canal  Company  found  that  the  tonnage  of  the  vessels 
trafficking  between  the  two  coasts  of  America,  between  the  eastern  United  States  and  the 
Orient,  between  Europe  and  Pacific  America,  i.  e.,  the  available  canal  tonnage  originating  or 
terminating  in  America,  increased  from  3,073,860  tons  net  register  in  1888  to  3,845,355  tons  in 
1898,  again  of  25.1  per  cent.  In  determining  whether  this  rate  of  increase  per  decade  is  one 
whose  use  will  result  in  a  conservative  estimate  of  the  probable  available  canal  traffic  in  1914, 
references  to  the  progress  in  the  vessel  tonnage  and  value  of  the  international  trade  of  a  few 
typical  regions  will  be  of  assistance. 

The  growth  that  has  taken  place  in  the  commerce  between  the  Atlantic  coast  of  the  United 
States  and  Pacific  foreign  countries  is  shown  in  the  following  table,  which  compares  the  j^ear 
1899  with  that  of  1889.  The  facts  are  shown  separately  for  western  South  America  and  all  other 
Pacific  countries. 

The  trade  of  the  Uiiiied  Stales  Atlantic  coast  with  foreign  countries  on  the  Pacific — Growth  in  value,  18S9-1899. 


With  South  America. 

With  all  other  Pacific. 

Combined 

Imports. 

Exports. 

Total. 

Imports. 

Exports. 

Total. 

total. 

1889 

S3,325,n5 
5,168,766 

83,854,341 
3,W2,139 

87,179,4.56 
9,110,905 

830,107,332 
34,642,073 

$17,478,531 
38,228,696 

817,585,865 
72,870,769 

S54,765,31{ 

1899 

81,981,674 

1,843,661 
55.4 

87,798 
2.2 

1,931,449 
26.8 

4,534,741 
15.1 

20,750,165 
118.7 

25,284,906 
63.1 

27,216,356 

49.; 

panajVia  canal  traffic  and  tolls.  367 

The  value  of  the  imports  from  South  America  rose  55.4  per  cent.  The  total  value  of  our 
import  and  export  trade  with  western  South  America  increased  26.8  per  cent  during  the  decade 
1SS9-1899. 

The  commerce  between  the  Atlantic  and  Gulf  seaboard  of  the  United  States  and  Australia, 
Japan,  and  the  mainland  of  Pacific  Asia  has  grown  more  rapidly-  than  our  trade  with  western 
South  America.  The  growth  in  the  value  of  tlie  imports  was  15.1  per  cent,  and  of  the  exports 
lis.  7  per  cent,  the  increase  in  the  total  trade  having  been  53.1  per  cent.  Our  ability  to  produce 
cheaply  has  enabled  us  to  enter  fi-eely  into  the  expanding  markets  of  the  western  half  of  the 
Pacific,  although  the  costs  of  transportation,  except  to  Australia  during  the  last  three  years  of 
the  decade  being  studied,  have  necessarih^  been  higher  than  our  rivals  have  had  to  bear.  The 
competition  of  the  three  lines  from  New  York  to  Australia  became  severe  in  1897  and  greatly 
facilitated  the  development  of  the  large  trade  which  we  have  latterly  secured  with  AustraHa. 

The  total  trade  of  the  United  States  with  Australasia  more  than  doubled  during  the  decade 
1890  to  1900,  having  been  $32,194,000  in  the  year  ending  June  30,  1900,  as  against  §15,544,000 
in  1890.  Our  exports  to  that  continent  increased  from  §11,266,000  to  $26,725,000  during  the 
decade. 

INCREASE    IN   TRADE    BETWEEN    EUROPE    AND   AVESTERN   COAST   OF   AMERICA. 

The  European  entrances  from  Chile  increased  from  575,890  tons  in  1888  to  914,091  tons  in 
1898,  a  gain  of  58.7  per  cent.  These  figures  contain  a  certain  amount  of  duplication,  but  the 
elimination  of  those  duplications  would  not  much  affect  the  percentage.  The  duplications  in 
clearances  from  Europe  are  greater  than  in  the  records  of  entrances,  and  for  that  reason  the 
statistices  of  clearances  are  not  cited  in  this  connection.  On  their  face  the  figures  of  entrances 
and  clearances  indicate  that  the  total  trade  between  Chile  and  Europe  was  33.3  per  cent  greater 
in  1898  than  ten  years  before,  and  while  neither  the  statistics  nor  the  per  cent  of  increase  are  to 
be  taken  as  absolutely  correct,  the}- possess  illustrative  value.  The  European  entrances  from  all 
the  west  coast  of  South  America  increased  from  789,278  tons  in  1888  to  1,077,346  tons  in  1898,  a 
gain  of  36.5  per  cent. 

In  the  chapter  dealing  with  the  vessel  tonnage  available  for  the  use  of  a  canal,  the  cargo 
tonnage  of  the  nitrate  of  soda  exported  from  Chile  was  shown  to  have  grown  from  420,000  to 
1,360,000  long  tons  during  the  fifteen-year  period  ending  with  the  calendar  year  1899.  This 
increase  of  over  200  per  cent  in  the  nitrate  ti'ade  is,  of  course,  due  to  causes  peculiar  to  it,  and 
not  generally  operative  upon  international  trade  as  a  whole.  Nevertheless,  the  growth  of  the 
foreign  trade  in  such  articles  as  nitrate  of  soda,  phosphate  rock,  lumber,  coal,  iron  and  steel 
products,  and  others  that  might  be  cited,  and  the  practical  certainty  that  the  increase  will  continue 
for  some  decades  to  come,  must  have  much  significance  in  any  reasoning  regarding  the  probable 
rate  of  increase  that  will  take  place  during  the  coming  decade  and  a  half,  in  the  commerce  available 
for  an  isthmian  canal. 

The  trade  of  Europe  with  the  Pacific  coast  of  the  United  States  is  subject  to  great  fluctuations, 
because  it  consists  largely,  although  to  a  continually  less  degree,  of  the  exports  of  grain,  the 
annual  volume  of  whicii  depends  upon  whether  the  crop  yield  is  abundant  or  light,  and  whether 
European  prices  are  high  or  low.  The  entrances  recorded  at  our  Western  ports  comprise  a 
decreasing  number  of  vessels  from  Europe,  because  the  majority  of  the  ships  reach  those  ports 
from  trans-Pacific  points.  The  export  trade  is  particularly  subject  to  fluctuation,  but  the  last 
decade  of  the  last  century  witnessed  a  moderate  growth  in  the  tonnage  of  vessels  cleared.  There 
was,  likewise,  an  increase  in  the  value  of  the  exports,  which  amounted  to  about  25  per  cent.  The 
exports  of  wheat  are  not  so  heavy  as  they  formerly  were,  but  other  commodities,  particularly 
horticultural  products,  ai'e  acquiring  a  large  place  in  the  foreign  trade. 

GROWTH    IN    TRANS-PACIFIC    TRADE    OF   THE    WEST    COAST   OF   THE    UNITED    STATES. 

The  trade  between  the  Pacific  coast  of  the  United  States  and  Hawaii,  Japan,  China,  and 
Hongkong  will  not  make  use  of  the  canal,  but  for  the  purpose  of  discussing  the  rate  at  which  the 
Pacific  commerce  is  growing,  this  trade  may  be  most  advantageously  considered.  In  the  follow- 
ing table  the  entrances  and  clearances  of  the  vessels  engaged  in"  that  trade  are  indicated,  the 
absolute  increase  in  the  total  tonnage  during  the  decade  is  shown  for  the  five  countries  separately 
and  collectively.  According  to  the  table  the  total  entrances  and  clearances  increased  191  per 
cent  during  the  decade. 
34998°— 12 25 


368  PANAMA  CXNAL  TRAFFIC  AND  TOLLS. 

Vessel  tonnage  of  the  trade  between  the  west  coast  of  United  States  and  trans-Pacific  countries. 


Country  and  year. 

Entrances. 

Clearances. 

Total. 

Country  and  year. 

Entrances. 

Clearances. 

Total. 

Hawaii: 

43,2.>4 
246,432 

96,200 
206,887 

139, 4&4 
453,319 

China: 

3,785 
72,145 

3,982 
23,790 

7,767 

1899.. 

1899 

95,936 

313,865 

88,168 

Hongkong: 

1889 

Siberia; 

1,029 
7,631 

1,980 
19,639 

3,009 
27,270 

107, 794 
183,679 

114,507 
207,430 

222,301 

1899 

391, 109 

24,261 

168,808 

Japan: 

29,480 
165,701 

2,09-5 
44.731 

31,575 
210.432 

1899 

178, 857 

1 

Total  entrances  and  clearances:  1889,  404,106;  1899, 1,178,065;  per  cent  of  gain,  191. 

In  reading  this  table  it  is  necessary  to  bear  in  mind  that  a  considerable  tonnage  of  vessels 
enter  our  Western  ports  not  to  secure  cargo  for  the  Orient,  but  to  load  with  grain,  lumber,  or 
other  freight  for  the  North  Atlantic,  and  if  allowances  could  be  made  for  this  the  average 
percentage  of  gain  would  be  somewhat  reduced.  However,  it  will  be  observed  that  the  clear- 
ances from  our  ports  for  the  live  Pacitic  countries — and  the  clearances  represent  the  movements 
of  vessels  actually  engaged  in  carrying  our  goods  abroad — show  a  large  increase  in  each  instance. 

The  foregoing  paragraphs  have  referred  to  the  rate  of  growth  prevailing  in  the  commerce 
of  the  Atlantic  coast  of  the  United  States  with  (1)  western  South  America,  (2)  with  all  Pacific 
countries  other  than  South  America,  and  (3)  with  Australia;  reference  has  also  been  made  to  rate 
of  increase  in  Europe's  commerce  (4)  with  the  west  coast  of  South  America.  (5)  with  Chile,  and 
(6)  with  the  Pacilic  States  of  the  United  States;  and,  finally,  attention  was  called  to  the  progress 
being  made  in  (7)  the  commerce  of  our  west  coast  with  Hawaii,  Australia,  Hongkong,  Cnina, 
Japan,  and  Siberia.  In  only  one  of  the.se  seven  references  to  international  trade — the  commerce 
between  our  west  coast  and  Eui'ope — was  the  rate  of  increa.se  per  decade  found  to  be  less  than 
25.1  per  cent,  obtained  by  comparing  the  records  of  the  New  Panama  Canal  Company  for  1888 
with  those  for  1898.  In  most  of  the  seven  special  divisions  of  commerce  above  noted  the  rate  of 
growth  was  found  to  be  much  more  than  25.1  per  cent. 

PROBABLE  AVAILABLE  CANAL  TRAFFIC  IN  1914. 

In  view  of  these  facts  it  would  seem  that  an  increase  of  25.1  per  cent  per  decade  up  to  the  time 
of  the  opening  of  the  canal  may  be  very  safely  and  conservatively  predicated  concerning  the 
traffic  that  might  have  advantageously  used  the  waterway  in  1899.  Predictions  concerning  the 
future  ten  or  fifteen  years  must  necessarih'  be  ba.sed  upon  the  experiences  of  the  past,  and  unless 
the  decade  upon  which  the  calculations  here  presented  as  to  the  future  are  made  to  rest  was  one 
of  abnormally  rapid  or  slow  commercial  progress,  it  may  properly  be  made  the  basis. 

Taken  as  a  whole  the  decade  preceding  1899  was  probably  one  during  which  the  world  made 
normal  indu.strial  and  commercial  progress.  In  the  United  States  the  earlier  years  and  the  last 
year  of  the  period  were  characterized  by  great  business  activity,  but  during  full}^  a  third  of  the 
decade  a  business  depression  of  unusual  severity  prevailed.  The  years  from  1893  to  1897  were 
more  trying  ones  in  this  country  than  they  were  in  Europe,  but  business  was  dull  rather  than 
active  iii  Europe  during  that  time.  Consequently  it  is  probable  that  estimates  based  upon  this 
decade  will  not  lead  to  an  exaggeration  of  the  facts. 

The  Panama  Canal  Company's  figures  for  the  vessel  movements  of  the  commerce  originating 
or  terminating  in  America,  increased  by  the  present  transisthmian  traffic,  and  816,223  tons  of 
Europe's  trade  with  Oceania,  Australia,' and  Japan,  show  that  the  available  canal  traffic  for  the 
calendar  year  1899  was  5,001,798  tons  net  register.  An  increa.se  of  25.1  per  cent  during  the  decade 
ending  in  1909  would  raise  the  amount  to  6,257,249  tons;  and  the  same  rate  of  growth  would 
bring  the  total  to  6,998,733— or,  in  round  numbers,  7,000,000— tons  in  1914. 

If  the  tonnage  of  available  canal  traffic  in  1899,  as  determined  by  the  Isthmian  Canal  Com- 
mission's study  of  entrances  and  clearances,  be  made  the  basis  of  estimate,  and  the  increase  of 
25.1  per  cent  per  decade  be  assumed,  the  figures  for  1909  will  be  6,118,735  net  register  tons,  and 
for  1914.  6,843,805  tons. 

In  the  foregoing  estimates  of  tonnage  the  figures  refer  to  the  available  canal  traffic.  It  is  not 
probable  that  all  of  the  commerce  included  in  the  above  totals  will  at  once  abandon  the  routes  at 
present  followed  and  immediately  make  use  of  the  isthmian  waterway.     It  will  take  some  time  to 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


369 


readjust  trade  with  reference  to  the  new  conditions  "which  the  canal  will  establish,  and  possibly 
two  years  may  be  required  for  merchants  and  carriers  to  adapt  themselves  to  all  the  changes  in 
the  routes  and  methods  of  international  trade  that  the  use  of  the  canal  will  necessitate.'^  The 
totalsjo  which  the  three  investigations  of  available  canal  tonnage  have  led  may  be  designated  as 
the  measure  of  all  the  commerce  that  would  have  used  the  canal  in  1S99,  had  the  commerce  of  our 
own  and  foreign  countries  been  adjusted  to  the  condition  of  trade  which  the  canal  would  have 
established.  There  is  no  tonnage  included  in  the  totals  which  might  not  advantageously  use  the 
canal,  except  during  the  temporary  period  of  transition  from  the  existing  conditions  governing 
international  trade  and  controlling  the  commerce  between  our  eastern  and  western  seaboards,  to 
those  conditions  which  will  exist  after  the  isthmian  route  has  been  opened. 


ESTIMATE    OF    GROWTH    OF   TRAFFIC    DURING    FIRST    DECADE    OF   THE    USE   OF   THE    CANAL. 

The  new  interoceanic  communication  will  so  greatly  modify  the  routes  of  commerce,  and  the 
conditions  controlling  the  progress  of  the  industries  and  commerce  of  many  sections  of  the  world, 
that  the  problem  of  estimating  the  increase  that  may  be  expected  to  take  place  in  the  tonnage 
using  the  canal,  during  the  first  decade  following  the  opening  of  the  waterwav,  is  a  different  one 
from  that  of  predicting  the  growth  of  available  traffic  up  to  the  time  of  the'  completion  of  the 
canal.  The  rate  of  increase  will  be  much  more  rapid  after  the  canal  has  been  put  into  service 
and  its  economic  eflects  have  begun  to  be  realized. 

The  present  small  amount  of  ocean  tonnage  plying  between  the  two  seaboards  of  the  United 
States  afi'ords  a  most  striking  instance  of  the  restrictions  which  the  absence  of  an  isthmian  canal 
imposes  unon  the  growth  of  a  traffic  that  will  become  large  when  the  isthmian  waterway  has  been 
opened.  During  the  past  decade  the  vessel  movements  between  our  two  seaboards  have  averaged 
less  than  250,000  tons  annually,  and  until  the  current  year  (1901)  have  tended  to  decline,  at  a 
time  when  our  domestic  and  foreign  trade  has  been  making  rapid  progress.  Our  small  trade  with 
western  South  America,  a  region  with  which  we  should,  and  some  day  will,  have  a  large  com- 
merce, is  another  example  of  the  restraints  of  existing  transportation  "facilities.  The  effect  of 
the  isthmian  canal  upon  the  interoceanic  coastwise  commerce  of  the  United  States  and  upon  our 
trade  with  western  South  America  will  be  revolutionary,  and  the  influence  upon  our  commerce 
with  foreign  countries  of  the  North  Pacific  will  he,  to  say  the  least,  highly  stinudative. 

During  the  decade  following  the  opening  of  the  canal  numerous  forces  will  operate  to  accel- 
erate tlie  growth  of  American  commerce.  Besides  being  influenced  by  the  new  isthmian  waterway, 
commerce  will  be  served  by  one  or  more  Pacific  cables  and  our  trade  will  have  the  advantage  of 
closer  and  more  direct  international  banking  facilities  than  now  exist.  Likewise,  there  is  reason 
to  expect  a  large  development  in  our  merchant  marine  during  the  coming  ten  or  fifteen  years. 
The  combined  effect  of  these  four  commercial  agencies  will  be  to  supplement  our  ability  to  pro- 
duce cheaply,  with  facilities  as  favorable  as  our  rivals  possess  for  communication  and  transpor- 
tation and  for  the  settlement  of  international  obligations,  and  the  result  will  be  the  sure  progress 
of  our  coastwise  and  foreign  maritime  commerce. 

While  it  is  not  to  be  expected  that  the  traffic  of  the  isthmian  waterway  during  the  early  years 
of  its  operation  will  increase  so  rapidly  as  did  the  tonnage  passing  through  the  Suez  Canal,  the  best 
basis  for  estimating  the  probable  increase  that  will  occur  in  the  tonnage  of  the  American  isthmian 
■waterway  is  the  rate  of  growth  that  the  traffic  of  the  Suez  Canal  has  had.  The  number  of  vessels 
that  have  passed  through  the  Suez  Canal  each  year  up  to  and  including  1901,  and  the  gross  and 
net  tonnage  are  shown  by  the  following  table: 

Suez  Canal  traffic. 


1870 
1871 
1872 
1873 
1874 
1876 
1876 
1877 
1878 
1879, 
1880. 
1881. 
1882. 
1883. 
1884. 
1885. 


Number 
ol  ves- 
sels. 


Gross  ton- 
age. 


486 
765 
1,082 
1,173 
1,264 
1,494 
1,467 
1,663 
1,593 
1,477 
2,026 
2,727 
3,198 
3,307 
3,284 
3,624 


1886 
1887 
18>vS 
18*9 
1890 
18SI 
189_' 
189:; 
1891 
189.1 
189G, 
1897, 
189.S. 
1899. 
1900. 
1901. 


Number 

Gross  ton- 

sels. 

3,100 

8,183,313 

8,430,043 

3,440 

9, 437, 957 

3,425 

9,605,745 

3,389 

9,749,129 

4,207 

12,217,986 

3,559 

10,866,401 

3,341 

10,756,798 

3,352 

11,283.855 

3,434 

11,833,637 

3,409 

12,039,859 

2,9S6 

11,1'23,403 

3,503 

12,962,632 

3,C07 

13,815,992 

3,441 

13, 699, 238 

3,699 

15,163,233 

Net  ton- 
age. 


5, 767, 666 
5,903,024 
6, 640, 834 
6,783,187 
6,890,094 
8, 698, 777 
7,712,029 
7, 659, 068 
8,039,175 
8,448,383 
8,660,284 
7, 899, 374 
9,238,603 
9, 895, 630 
9, 738, 162 
10, 823, 840 


370 


PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 


The  growth  in  the  tonnage  using  the  Suez  Canal  is  graphically  shown  by  the  following 
diagram: 


_ 

^ 

- 

- 

~ 

— 1 

n 

— 

&^ 

f 

.? 

— 

s' 

O 

'■ 

.< 

— ' 

A 

— 

_J 

>'^ 

■ 

,< 

< 

— 

__ 

J 

_ 

— i 

— 

o 

r* 

{VI 

^ 

10 

(0 

i 

s 

0) 
1^ 

(D 

i 

o 

n 

t 

10 

to 

N 

a 

£ 

1 

1 

2 

S 

ID 

S 

i 

§ 

1 

m 

01 
ID 

.000.000 

.soo.ooo 

^000,000 
,50  0,000 
,000,000 
.500,000 
.000,000 

.soo.ooo 

.000,000 
.500,000 
,000.000 
,500.000 
,000.000 
.500,000 
,000.000 
,500,000 
,000.000 
,500.000 
.000.000 
500,000 


The  increa.se  in  the  traffic  of  the  Suez  Canal  is  well  shown  by  grouping  the  figures  of  the 
foregoing  table  into  five-year  periods  and  comparing  the  totals  of  these  periods.  This  is  done  in 
the  following  table: 

Increase  in  the  number  of  vessels  and  tonnage  of  the  Suez  Canal  by  quinquennial  periods. 


Years. 

Number 

of 
vessels. 

Net  tonnage. 

Increase. 

Percentage 
which  the 
tonnage  of 
each  five-year 
period  is  of 
the  tonnage 
of  1875-1879. 

■4,770 
7,684 
14,542 
16,726 
17,848 
16, 939 

5,368,237 
10,995,214 
23,916,374 
31,430,454 
39,899,143 
44,042,274 

Per  cent. 

105 
117 
31 
27 
10 

217 

1885-1889 .                                                    

286 

363 

1895-1899 

401 

If  the  fir.st  five-year  period  were  made  the  basis  of  comparison,  the  rate  of  increase  would  be 
so  great  as  to  exaggerate  the  progress  which  the  traffic  made  during  the  subsequent  quinquennial 
periods.  The  Suez  Canal  could  be  used  advantageously  only  by  steamers,  and  in  1870  the  number 
of  steamers  available  for  the  commerce  between  Europe  and  the  East  Indies  was  limited.  For 
some  years  the  greater  part  of  the  commerce  continued  to  go  in  sailing  vessels  around  the  Cape 
of  Good  Hope.  After  the  canal  had  been  in  use  a  few  j'ears,  howevei-,  steamers  were  to  a  large 
extent  substituted  for  the  sailing  vessels,  and  the  Suez  route  for  the  Cape  route  for  the  greater 
part  of  the  business.  It  will  be  seen  that  the  traffic  of  the  five  years  1880-188-1:  was  217  per  cent 
that  of  the  previous  quinquennial  period.  The  tonnage  of  1885-1889  was  286  per  cent  of  the 
period  from  1875  to  1879;  the  tonnage  of  1890  to  1894  was  363  per  cent,  and  that  of  1895  to  1899, 
401  per  cent  of  the  traffic  of  the  five  years  1875  to  1879.  During  the  last  quinquennial  period  of 
the  twenty-five  years  from  1875  to  1899  the  traffic  of  the  Suez  Canal  was  four  times  what  it  was 
during  the  first  five  years.  Had  the  traffic  of  the  years  1870-1874  been  made  the  basis  of  com- 
parison the  above  percentages  would  have  been  very  much  larger. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  371 

Omitting  the  first  two  years,  when  the  traffic  was  comparatively  light  because  but  few  steam- 
ships were  available  for  the  trade  between  Europe  and  the  East,  and  making  1872  the  basis  of 
comparison,  it  will  be  seen  that  the  traffic  grew  from  1,160,743  net  tons  in  1872  to  5,074,809  net 
tons  in  1882,  a  gain  of  337  per  cent.  The  tonnage  of  1875  had  increased  215  per  cent  by  1885. 
The  traffic  of  1890  was  125  per  cent  greater  than  that  of  1880.  Since  1890  the  absolute  gain  in 
the  tonnage  figures  has  been  large,  although  the  percentage  of  increase  is  less  than  it  formerly 
was.  The  gain  of  46  per  cent  from  1889  to  1899  represents  an  increase  of  4,210,247  tons  gross 
register  and  3,112,443  tons  net. 

Should  the  rate  of  increase  in  the  tonnage  of  the  isthmian  canal  during  the  first  ten  years  be 
half  that  of  the  Suez  during  the  second  decade  of  its  use,  the  rate  would  be  62^  per  cent.  Li 
view  of  the  much  larger  rate  shown  by  the  Suez  Canal,  and  in  view  of  the  conditions  that  will 
favor  commercial  progress  at  the  time  of  and  subsequent  to  the  opening  of  the  American  canal, 
62i  per  cent  is  believed  to  be  a  conservative  estimate. 

THE    ESTIMATE   FOK   1924. 

A  decennial  increase  of  62i  per  cent  in  the  estimated  traffic  available  for  the  canal  in  1914, 
as  determined  by  the  figures  obtained  by  using  the  tables  prepared  by  the  New  Panama  Canal 
Compan}',  would  give  a  tonnage  of  11,372,941  net  vessel  tons  in  1924.  A  62^  per  cent  increase 
in  the  estimated  vessel-tonnage  total  of  1914,  reached  by  the  Commission's  study  of  entrances 
and  clearances — 6,843,805 — would  amount  to  11,121,183.  These  two  estimates  for  1924  average 
about  11,250,000  tons. 

For  reasons  stated  above  the  entire  amount  of  the  available  canal  tonnage  can  hardly  be 
expected  to  use  the  new  route  during  the  first  year  or  two  of  the  operation  of  tne  waterway,  the 
period  required  for  the  readjustment  of  commercial  arrangements.  This  adjustment  will,  how- 
ever, not  be  delayed  by  a  scarcit}^  of  steamers,  and  will  be  quicklj^  made.  After  two  j^ears  the 
full  amount  of  the  available  canal  tonnage — the  available  tonnage  of  1916,  not  of  1914 — will  be 
passing  the  canal  in  all  probability,  and  the  62^  per  cent  increase  in  the  available  tonnage  of 
1914  maj'  fairly  be  expected  to  represent  the  actual  tonnage  at  the  close  of  the  decade  ending 
in  1924.  In  this  calculation  it  is  assumed  that  the  canal  will  have  been  put  in  operation  by  the 
beginning  of  1914. 


Chapter  XXII. 
THE  aXTESTION  OF  TOLI<S. 

In  levying  tolls,  three  different  purposes  may  control  action.  Such  charges  maj'  be  imposed 
as  will  cause  the  receipts  to  cover  expenses  only,  or  to  cover  the  expenses  and  a  fair  rate  of 
interest  on  the  capital  invested,  or  charges  may  be  fixed  for  the  purpose  of  securing  the  greatest 
possible  income  from  the  canal. 

Should  the  principle  of  maximum  revenue  be  adopted,  the  effect  of  tolls  upon  the  volume  of 
traffic  will  need  to  be  carefull}'  studied,  because  the  receipts  derived  from  the  operation  of  the 
canal  will  be  the  product  of  two  factors — the  rate  of  toll  and  the  volume  of  traffic.  The  tonnage 
of  traffic  being  dependent  upon  the  tolls  charged,  it  would  ])e  necessar}',  in  order  to  secure  the 
maximum  revenue,  to  ascertain  what  rate  of  toll  could  be  paid  by  that  volume  of  traffic  which 
when  multiplied  by  the  rate  would  jueld  the  maximum  product.  It  is  hardl}'^  necessar}'  to  say 
that  there  is  no  fixed  rule  by  which  the  rate  can  be  determined  that  would  yield  the  greatest 
revenue.  If  there  were  such  a  rule,  it  ought  not  to  be  the  one  adopted  in  fixing  the  tolls  of  the 
Isthmian  Canal. 

The  policy  in  regard  to  tolls  should  be  adopted  with  reference  to  all  the  purposes  which  the 
canal  is  constructed  to  accomplish,  and  no  argument  need  be  advanced  to  enforce  the  truth  that 
the  revenue-producing  function  of  the  canal  will  be  a  minor  one  as  compared  with  its  function  of 
promoting  the  industrial,  commercial,  and  social  progress  of  the  United  States  and  all  countries 
whose  trade  will  be  affected  by  it.  The  exaction  of  charges  that  would  largely  I'estrict  the 
volume  of  business  done  through  the  canal  would  permit  the  waterway  to  perform  only  in  part 
the  chief  services  it  is  designed  to  accomplish. 

The  canal  is  to  be  constructed  and  operated  by  the  Government  primarily  for  the  promotion  of 
the  economic  and  political  welfare  of  the  people  of  the  United  States,  and  the  tolls  charged  will 
doubtless  be  fixed  so  as  not  unnecessarily  to  interfere  with  the  realization  of  this  purpose.  The 
principle  of  maximum  charges  would  be  inconsistent  with  the  public  welfare,  and  if  tolls  are 
levied  the  choice  will  lie  between  a  rate  that  will  cover  onlj'  the  expense  of  operation  or  a  rate 
that  will,  in  addition,  j-ield  an  income  on  the  capital  invested. 

Before  beginning  the  discussion  of  tolls  with  reference  to  the  American  canal,  it  will  be 
profitable  to  study  the  experience  of  the  Suez  Canal.  That  interoceanic  waterwaj'  has  now  been 
in  use  over  thirty  years,  and  the  main  features  and  results  of  the  financial  policy  maintained  in 
its  management  maj'  well  be  considered. 

SUEZ    CANAL   TOLLS. 

The  charges  for  passing  the  Suez  Canal  are  9  francs"  per  net  vessel  ton,  the  tonnage  being 
determined  by  the  so-called  Danube  measurement,  a  svstem  adopted  by  the  International  Tonnage 
Commission  of  Constantinople.  Vessels  in  ballast  obtain  a  reduction  of  2^  francs  per  ton  from 
the  regular  toll  charges.  Each  vessel  carrying  passengers  is  obliged  to  pay  10  francs  for  each 
passenger  above  12  years  of  age,  and  5  francs  for  each  passenger  between  the  ages  of  3  and  12 
years.  There  are,  in  addition  to  these  tolls,  certain  port  and  transit  dues.  A  towage  service  is 
maintained  for  the  use  of  such  ships  as  may  require  towing,  and  for  this  service  there  is  a  fixed 
schedule  of  charges. 

In  applying  the  Danube  rules  to  the  measurement  of  a  vessel  the  net  tonnage  resulting  is 
considerably  larger  than  the  net  tonnage  of  a  vessel  registei'ed  under  the  British  or  American 
flags.  The  following  table  shows  the  relation  of  gross  to  net  tonnage,  as  determined  by  the  Danube 
and  other  measurements,  for  three  tj'pical  vessels  which  passed  through  the  canal  in  1900.  The 
toll  paid  by  these  three  ships  is  given  and  the  amount  which  this  charge  would  have  been  per  ton 
net  register,  British  measurement,  is  stated  for  two  of  the  vessels,  and  per  net  ton  Norwegian 
measurement  for  the  third  ship: 

<*The  tolls  were  9  francs  at  the  time  this  report  was  prepared.     They  have  since  been  reduced  to  8J  francs. 
372 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Tolls  charged  for  passing  Suez  Canal. 


373 


Name  of  ship. 


Gross  regis- 
ter. 

Net  regis- 
ter. 

Tons. 
3,414.07 
3, 596. 00 
3,628.00 

Tone. 
2,198.282 
2.291 
2,361 

Net 
register 

tonnage, 
Danube 

measure- 
ment. 


Percentage 

which 
Danube  is 
of  other 
measure- 
ments. 


Charge  per 

ton  net, 
British  and 
Norwegian 
measure- 
ments. 


Sunderland British 

Queen  Christiana do 

Bergenhus '  Norwegian  . 


$4,466.61 
4,775.84 
5,376.09 


S2.03 
2.08 
2.19 


The  table  shows  that,  according  to  the  Danube  rules,  the  net  tonnage  of  a  vessel  will  average 
fully  one-fifth  more  than  when  measured  according  to  British  or  Norwegian  measurements.  The 
toll  charges  of  9  francs  were  considerably  over  $2  per  ton  on  the  net  register  of  the  ves.sels,  British 
or  Norwegian  measurement.  The  American  measurements  are  made  by  practically  the  same 
rules  as  the  British. 

The  total  transit  dues  of  the  steamer  Bei'genhm  were  27,887.95  francs,  of  which  26,880.45 
francs  were  paid  for  tolls — the  charges  other  than  tolls  amounting  to  1,007.50  francs,  or  fil94.4:5. 

The  traffic  receipts  of  the  Suez  Canal  from  the  first  year  of  its  operation  to  the  close  of  1901 
is  shown  by  the  following  table.  The  receipts  are  given  in  francs  and  in  dollars,  a  franc  having 
been  considered  equal  to  $0,193.  The  number  of  vessels  and  their  mean  net  tonnage  is  also  given 
in  the  table: 

SUEZ    CANAL    TRAFFIC. 


Number  and  size  of  vessels,  receipts  from  tolls. 

Year. 

Number 
of  vessels. 

Mean  net 
tonnage 
per  ves- 
sel. 

Transit 
receipts. 

Receipts. 

Year. 

Number 
ofvessels. 

Mean  net 
tonnage 
per  ves- 
sel. 

Transit 
receipts. 

Receipts. 

1870 

486 
765 
1,082 
1,173 
1,264 
1,494 
1,457 
1,663 
1,593 
1,477 
2,026 
2,727 
3,198 
3,307 
3,284 
2,624 

898 
995 
1,071 
1,166 
1,290 
1,345 
1,439 
1,416 
1,425 
1,.532 
1,509 
1,617 
1,586 
1,746 
1,787 
1,748 

Francs. 
5, 159, 327 
8,993,733 
16,407,591 
22,897,319 
24,859,383 
28, 886, 302 
29,974,999 
32, 774, 344 
31,098.229 
29,686,061 
39,840,488 
51,274,353 
60,545,882 
65,847,812 
62, 378, 116 
62,207,439 

$995,760 
1,736,790 
3,166,666 
4,419,182 
4,797,861 
6,575,056 
5,785,174 
6,326,448 
6,001,958 
6,629,410 
7,689,214 
9,895,9.50 
11,685,355 
12,708,627 
12,038,976 
12, 006, 035 

1386 

3,100 
3,137 
3,440 

1,860 
1,881 
1,930 
1,951 
2,033 
2,067 
2,167 
2,292 
2,398 
2,460 
2,511 
2,645 
2,637 
2,743 
2,830 
2,926 

Francs. 
56,527.391 
67,862,371 
64, S32,  273 
66,  lU7,,i79 
66,984,000 
83,422,101 
74,4.52,436 
70, 667, 361 
73,776,828 
78,103,718 
79,569,994 
72,830,515 
85,294,770 
91,318,772 
90, 623, 609 
100,386.397 

$10,909,786 
11,167,437 
12, 512, 628 
12,770,343 
12, 927, 912 
16,100,465 
14,369,320 
13,638,800 

1871 

1887 

1872 

1873 

1874 

1890 -. '        3,389 

1891 4,207 

1892 3,659 

1893 1        3,341 

1894 3,352 

1875 

1876 

1877 

1878 

1879  .... 

1880 

3,409 
2,986 
3,503 

16,357,009 

1881 .... 

1897 

1882 

16,461,891 

1883 .... 

1884 

19m'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.l        z.ui 

1885 

It  is  shown  that  there  has  been  a  fairly  steady  and  a  comparatively  rapid  growth  in  the 
traffic  receipts  of  the  canal  almost  from  the  time  when  it  was  opened  for  commerce.  The  traffic 
and  the  revenues  were  comparatively  small  the  first  two  years,  because  there  were  not  many 
steamers  available  for  the  commerce  between  Europe  and  the  East.  The  transit  receipts  for  the 
year  1899  amounted  to  $17,624,553.  By  grouping  the  canal  receipts  into  five-year  periods  and 
comparing  those  periods  with  eacli  other  the  rate  of  growth  can  be  shown  more  accurately  than 
by  comparing  one  year  with  another.  The  annual  variations  are  frequently  large,  but'  when 
quinquennial  periods  are  compared  the  effects  of  these  annual  variations  are  'minimized.  In  the 
following  table  the  figures  of  the  preceding  table  are  grouped  according  to  quinquennial  periods. 
In  comparing  the  periods  the  first  five  years  are  omitted,  because  if  the  figures  of  that  period 
were  made  the  basis  of  comparison  the  rate  of  increase  would  be  so  great  as  to  give  an  exagger- 
ated statement  of  the  growth  that  has  taken  place  since  1875: 

Increase  in  number  and  size  ofvessels,  and  receipts  of  Suez  Canal,  by  quinquennial  periods,  1875-1899. 


Year. 

Number 
of 

vessels. 

Mean  net 
tonnage 

per 
vessel. 

Receipts. 

Percentage 
which  re- 
ceipts of  5- 
year  periods 
are  of  receipts 
of  1875-1879. 

Year. 

Number 
of 

vessels. 

Mean  net 
tonnage 

per 
vessel. 

Receipts. 

Percentage 
which  re- 
ceipts of  6- 
year  periods 
are  of  receipts 
of  1875-1879. 

1870-1874 

4,770 
7,684 

1,123 
1,430 

1,644 

$15,115,248 
29, 317, 046 
54,018,122 

16, 726 
17.848 
16, 939 

1,879 
2,108 
2,659 

$59,366,229 
71, 275, 425 
78,213,766 

202 
243 

1875-1879 

1880-1884 

14,542 

184 

1895-1899 

374 


PANAMA  CANAL  TRAFFIC  AND   TOLLS. 


The  receipts  of  the  period  1880  to  1884,  inclusive,  were  184  per  cent  of  those  of  the  previous 
five  years.  Tne  revenues  from  traffic  during  the  five  j'ears  1885-1889  were  202  per  cent  of  those 
obtained  during  the  period  1875-1879,  whereas  the  revenues  for  the  five-year  periods  1890-1894 
and  1895-1899  were,  respectively,  243  and  266  per  cent  of  the  receipts  obtained  in  the  years  1875 
to  1879.  The  transit  revenues  of  the  last  five  years  of  the  quarter  century  were  two  and  two- 
thirds  those  of  the  first  five  years.  The  traffic  of  this  later  period  was  fourfold  that  of  the  five 
years  which  are  made  the  basis  of  comparison. 

The  Suez  Canal  has  been  a  very  pro  'table  investment  of  capital.  There  are  400,000  shares 
of  capital  stock,  with  a  par  value  of  500  francs  each,  and  bonds  which  amounted  to  177,340,000 
francs  in  1898.  The  dividends  paid  on  the  stock  reached  5  per  cent  in  1874,  were  5i\  per  cent  in 
1876,  and  6  per  cent  in  1879.  They  have  been  as  high  as  17  per  cent.  In  1898  the  net  balance 
for  distribution,  after  paying  costs  of  operation,  interest  on  the  bonds,  and  other  expenses, 
amounted  to  46,618,000  francs.  In  the  distribution  of  this  sum  the  shareholders  received  71  per 
cent  of  the  total,  33,098,780  francs,  i.  e.,  16^  per  cent  of  the  face  value  of  their  stock.  Of  the 
remaining  29  per  cent  of  the  net  earnings,  15  per  cent  went  to  the  Egyptiai  Government,  10  per 
cent  to  the  founders,  2  per  cent  to  the  directors,  and  2  per  cent  to  the  emplo3'ees. 

An  additional  fact  of  mu  interest  is  shown  b}'  the  preceding  tables.  It  will  be  noted  that 
the  number  of  vessels  passing  the  canal  was  no  greater  in  1899  than  in  1885.  During  those  fifteen 
years  the  tonnage  has  increased  56  per  cent.  The  number  in  1901  was  508  less  than  in  1891,  but 
the  gross  tonnage  in  1901  was  nearly  3,000,000  greater  than  in  1891.  The  larger  volume  of 
traflic  has  been  accommodated  by  increasing  the  size  instead  of  the  number  of  the  ships.  The 
mean  net  register  of  the  vessels  using  the  Suez  Canal  is  now  about  3,000  tons.  Should  the 
present  rate  of  increase  continue  until  1914,  the  vessels  will  then  average  3,600  tons  net,  and 
it  is  probable  that  the  large  dimensions  about  to  be  given  the  Suez  Canal  will  result  in  more 
rapid  increase  m  the  size  of  vessels  than  is  now  taking  place. 

The  growth  in  the  size  of  ships  using  the  Suez  Canal  is  graphicall}'  shown  by  the  following 
diagram: 


— 

_ 

L_ 

■ 

^. 

<». 

^t' 

^ 

— 

■< 

€.1 

< 

' 

>^ 

i 

po' 

—1 

^d>  - 

-^ 

^^  -    - 



^  '£^            : 

-~ 

^2           _"-- 

^    ^ 

^^^'          --" 

A-^"^    --- 

f"*^    - 

— 

— 

1 

IS     l~ 
9    O 

IS 

o 

a 
m 

ID 

01 

10 

o 

10 

o 

(0 

10 

a 

1 

2eo0 

2700 
2600 
2S00 
240O 
2  300 
220O 
2100 
2000 
I90O 
1800 
I70O 

leoo 
isoo 

1400 
1300 
1200 
I  lOO 
lOOO 
0O9 


The  tendency  to  increase  the  size  of  ocean  vessels  is  important  in  connection  with  the  study 
of  the  traffic  of  the  isthmian  canal,  because  the  cost  of  operating  the  canal  will  depend,  to  some 
extent,  upon  the  number  of  lockages.  The  maximum  traflic  capacity  of  the  canal  will  also  be 
greater  it  vessels  of  large  instead  of  small  dimensions  are  used.     A  traffic  of  10,000,000  tons  net 


PAJSTAMA  CANAL  JEAFFIC   AND   TOLLS.  375 

per  year  would  require  the  passage  of  5,000  vessels,  with  an  average  net  register  of  2,000  tons, 
or  about  7  ships  each  way  per  day  on  an  average.  The  same  number  of  ships  double  the  size 
would  make  the  annual  tonnage  20,000,000  tons  without  any  increase  in  the  number  of  lockages 
required. 

In  this  connection  attention  may  properly  be  called  to  the  possible  trailic  capacity  of  a  twin- 
lock  canal  such  as  the  isthmian  waterway  will  be.  By  the  time  the  canal  has  been  put  into 
operation  the  vessels  using  it  wUl,  in  all  probability,  i.verage  as  much  as  4,000  tons  net  register. 
If  50  such  vessels  were  to  pass  through  the  canal  daily,  25  each  way  on  an  average,  the  total 
annual  net  tonnage  would  be  73,000,000  tons.  Inasmuch  as  the  time  ordinarily  required  for  a 
ship  to  pass  a  lock  will  not  exceed  three-fourths  of  an  hour,  a  canal  with  twin  locks  could  readily 
handle  an  average  of  25  vessels  per  day  each  wa}%  and  do  so  without  delaj'  to  commerce,  except, 
perhaps,  at  certain  times  when  the  rush  of  traffic  might  largely  increase  the  average  daily  number 
of  vessels  making  the  passage. 

EFFECT  OF  TOLLS  UPON  VOLUME  OF  TRAFFIC  OF  SUEZ  CANAL. 

In  the  case  of  the  Suez  Canal  there  is  but  a  comparativeh'  small  percentage  of  the  total 
available  tonnage  situated  on  the  margin  of  advantage,  and  for  that  reason  the  Suez  Canal  Com- 
pany has  been  able  to  derive  large  revenues  from  the  maintenance  of  high  tarifis.  The  trade  of 
Europe  with  Australia  is  more  liable  than  any  other  important  categorj'  of  available  commerce  to 
be  kept  away  from  the  canal  and  sent  around  the  Cape  of  Good  Hope,  but  a  part  even  of  that 
trade  is  done  by  way  of  Suez.  The  passenger  and  mail  steamers  all  use  the  canal,  while  most  of 
the  slow  freight  steamers  take  the  Cape  route. 

A  reduction  in  the  Suez  Canal  charges  would  draw  to  that  waterway  some,  but  not  a  very 
large  amount,  of  the  European  trade  with  the  East.  The  change  from  sail  .to  steam  power  is 
helping  the  Suez  Companj-  to  get  the  business  without  reducing  its  charges.  The  high  tolls  of 
the  Suez  have  a  greater  deflecting  efli'ect  on  the  commerce  of  the  eastern  seaboard  of  the  United 
States  with  the  East  than  on  the  trade  of  Europe  with  the  countries  of  that  region,  because  the 
saA'ing  in  distance  accomplished  by  the  canal  is  much  less  for  the  American  than  for  the  European 
commerce.  From  New  York  to  Australia  the  Cape  route  is  no  longer  than  the  canal  route  for 
full-powered  steamers,  and  of  course  vessels  go  by  the  Cape.  In  going  from  New  York  to 
Singapore  and  points  in  China  and  Japan  the  course  by  wa}'  of  Suez  saves  less  than  2,000  miles, 
and  the  canal  route  is  from  seven  eighths  to  five-sixths  as  long  as  that  around  Good  Hope. 

Sailing  vessels  leaving  New  York  for  the  Far  East  take  the  Cape  route,  but  steamers  always 
go  through  the  canal.  A  large  reduction  in  the  Suez  Canal  tolls  would  doubtless  hasten  the 
substitution  of  steamers  for  sailers,  and  secure  for  the  canal  a  larger  share  of  the  total  traffic,  at 
least  until  the  American  isthmian  waterway  had  become  available. 

The  traffic  of  the  Suez  Canal  could  be  increased  by  a  reduction  of  50  per  cent  in  the  transit 
charges,  but  the  effect  of  tolls  upon  the  tonnage  of  the  Suez  waterway  is  not  so  great  as  the 
influence  of  the  isthmian-canal  charges  will  be  on  the  volume  of  traffic  usin^  that  waterwaj'.  The 
marginal  traffic  is  much  greater  in  the  case  of  the  American  waterway,  and  high  tolls  will  cause 
much  trade  to  adhere  to  existing  ocean  routes.  Moreover,  the  traffic  between  our  two  seaboards, 
which  will  constitute  a  large  share  of  the  total  canal  tonnage,  will  be  competed  for  by  rail  as 
well  as  water  routes,  and  the  higher  the  canal  tariffs  are  the  larger  will  be  the  share  of  the  total 
commerce  between  the  eastern  and  western  sections  of  our  country  that  will  move  by  rail. 

The  commerce  whose  routes  will  be  most  affected  b_y  the  tolls  of  the  isthmian  canal  will  be 
that  between  Europe  and  Chile,  that  of  the  United  States  and  Europe  with  Australia,  and  that 
of  the  United  States  with  the  Philippines,  southern  China,  and  a  part  of  that  with  the  Dutch 
East  Indies. 

ISTHMLAN    CANAL    TOLLS   AND    THE    CHILEAN   TRAFFIC. 

Three-fourths  of  the  Chilean  tonnage  consists  of  nitrate  of  soda,  the  deposits  of  which  are 
located  in  the  northern  part  of  the  country,  in  the  middle  part  of  the  west  coast  of  South 
America.  The  route  north  from  the  nitrate'beds  of  northern  Chile  by  way  of  an  isthmian  canal 
will  require  the  vessel  to  make  a  detour  of  some  length  to  the  west,  and  the  average  distances 
from  Europe  to  the  nitrate  deposits  will  be  shortened  about  2,800  nautical  miles  by  the  canal. 
About  30  per  cent  of  the  present  distances  through  the  Straits  of  Magellan  will  be  saved.  A 
saving  of  2,800  miles  would  shorten  the  time  of  the  voyage  for  a  10-knot  steamer,  eleven  days 
and  sixteen  hours.  In  using  the  canal  route  for  the  purpose  of  saving  this  distance  of  2,800 
miles,  something  over  a  day  would  be  required  for  passing  a  Nicaragua  canal,  and  somewhat 
more  than  a  half  day  for  the  transit  across  Panama.  In  general,  a  10-kuot  steamer  could  shorten 
the  time  of  its  voyage  between  Europe  and  the  central  part  of  western  South  America  ten  days 


876  PANAMA  CAN.iL  TKAFFIC   AND   TOLLS. 

by  using  a  Nicaragua  canal,  aud  eleven  tlaj-s  b^-  passing  thi-ough  a  Panama  waterwaj'  instead  of 
going  around  by  the  Straits  of  Magellan.  A  vessel  operated  at  a  speed  of  9  knots  per  hour, 
which  is  the  present  speed  of  the  larger  share  of  tramp  steamers — the  vessels  in  which  the  major 
portion  of  the  world's  ocean  commerce  is  carried  on — would  shorten  the  time  of  its  voyage 
thirteen  days  by  avoiding  2,800  miles  of  sailing.  Such  a  vessel  could  get  from  Europe  to'  the 
middle  part  of  the  west  coast  of  South  America  eleven  and  one-half  days  sooner  by  way  of  a 
Nicaragua  canal,  and  twelve  and  one-half  days  earlier  via  a  Panama  route. 

Would  the  possibility  of  saving  from  ten  to  eleven  and  a  half  days  cause  a  vessel  running 
between  Europe  and  Chile  to  pay  tolls  for  the  privilege  of  passing  an  isthmian  canal,  and  what 
charges  could  the  vessel  afford  to  pay  ?  This  depends  mainly  upon  the  costs  of  operating  the 
ship  when  at  sea. 

The  information  received  from  a  firm  operating  several  ships  is: 

The  cost  of  operating  a  modern  freight  steamer  of,  say,  2,500  tons  net  register  (dead  weight  cargo  capacity,  say, 
6,000  tons),  averages  not  exceeding,  say,  $175  per  day.  This  includes  wages,  pro\nsions,  coal,  interest  on  capital 
invested,  insurance,  wear  and  tear. 

Another  authority  states: 

AVe  find  that  the  average  cost  of  operating  a  steamer  of,  say,  8,000  gross  tons  dead  weight  capacity  (about  3,500 
tons  net),  wliich  includes  bunker  coal  as  well  as  cargo,  making  an  average  speed  of  9  knots  per  hour  between  New- 
York  and  San  Francisco,  to  he  about  8300  per  day.  This  covers  cost  of  bunker  coal,  victualing  and  manning,  and 
insurance  only.     The  cost  of  bunker  coal  is  based  upon  the  average  cost  of  same  to-day  (1901). 

This  latter  statenient  of  costs  of  operating  ships  does  not  include  the  expenses  of  interest  on 
capital,  nor  is  anything  allowed  for  depreciation  in  the  value  of  the  ship.  The  addition  of  these 
items  would  .somewhat  increase  the  average  daily  expenses. 

These  two  calculations  as  to  the  costs  of  operating  vessels  give  results  differing  largely, 
doubtless  for  the  reason  that  the  first  calculation  is  based  on  experence  in  the  operation  of  ships 
imder  a  foreign  flag  across  the  Atlantic,  where  coal  is  cheap,  and  for  the  reason  that  the  co.sts 
are  for  normal  times  instead  of  for  a  j^ear,  when  prices  were  unusually  high,  while  in  the  second 
estimate  the  experience  drawn  upon  consisted  in  the  management  of  vessels  under  the  American 
flag  at  a  time  of  high  prices  and  upon  a  route  where  the  costs  of  coal  are  very  much  higher  than 
in  North  Atlantic  ports. 

The  costs  of  chartering  British  steamers  in  1900  and  1901,  and  operating  them  at  a  speed  of 
9  knots  in  the  trade  between  the  Atlantic  and  Pacific  coasts  of  America  are  given  bj'  a  firm 
having  a  large  business. 

The  actual  monthly  and  daily  expen.ses  incurred  for  two  of  these  British  ships  by  the 
American  firm  chartering  them  was  as  follows: 

1. 

Gross  register tons. .  3, 048 

Net  register do . .  1 ,  954 

Dead- weight  capacity,  including  coal  and  stores do..  5,000 

Freight,  at  4s.  6d.  per  dead-weight  ton  per  month  (30  days),  say,  1,125,  at  S4.86 $5, 467.  50 

Coal,  20  tons  per  day,  30  days  =  600  tons,  at  $3 1 ." 1,  800. 00 

Total 7,267.50 

$7,267.50^-30  days  =  $242.25  per  day. 

2. 

Gross  register tons. .  3, 244 

Net  register do. .  2, 104 

Dead-weight  capacity,  including  coal  and  stores do. .  5, 100 

Freight  at  5s.  6d.  per  dead-weight  ton  per  month  (30  days),  say,  1,402-10,  at  $4.86 ' $6,  816. 15 

Coal,  20  tons  per  day,  30  days  =  600  tons,  at  $3 1, 800. 00 

Total 8,616.15 

$8,616.15-^30  days=$287.20  per  day. 

In  the  case  of  both  of  these  ships  the  charterer  paid  port  charges,  agency  fees,  stevedoring, 
and  pilotage.  The  vessel  owner  paid  for  engine  stores,  wages  of  crew,  insurance  on  vessel,  and 
victualing,  and  in  fixing  his  charges  included  payment  for  wear  and  tear,  aud  presumably  a  profit 
to  owners. 

The  rates  paid  to  the  owner  by  the  charterer — a  certain  amount  per  month  per  ton,  dead- 
weight capacit}' — vary  according  to  the  supply  of  and  demand  for  ships.  The  supply  of  vessels 
since  these  figures  were  submitted  has  been  such  as  to  reduce  existing  charter  rates  very 
considerably. 

A  saving  of  ^175  a  day  for  ten  days  would  amount  to  $1,750,  and  for  eleven  and  one-half 


PAJ^AMA  CANAL  TRAFFIC   AND   TOLLS.  ^  377 

days  to  $2,022.50.  A  toll  of  $1  per  net  ton  register  on  a  ship  of  2,.500  tons  would  equal  $2,600, 
or  considerably  more  than  such  a  vessel  operated  at  a  speed  of  9  or  10  knots  could  save  by  short- 
ening the  voyage  between  Europe  and  Chile  2,800  miles.  However,  something  .should  be  added 
to  these  amounts  saved  by  shortening  the  voyage,  because  the  insurance  would  be  less  on  the 
vessels  that  used  the  canal  instead  of  passing  through  the  Straits  of  Magellan,  which  ai-e  espe- 
cially dangerous  to  navigate.  Moreover,  freight  rates  could  be  made  somewhat  higher  by  the 
vessel  that  could  deliver  its  cargo  in  a  shorter  time.  Time  is  money  in  most  lines  of  trade. 
Furthermore,  men  operating  vessels  would  for  a  like  reason  prefer  to  have  the  ships  use  the  route 
that  would  enable  them  to  do  the  greatest  possible  amount  of  business  each  year.  It  would  be 
difficult  to  put  these  advantages  of  the  istlimian  over  the  Straits  route  into  their  exact  money 
equivalent,  but  they  would  constitute  a  strong  reason  for  using  a  canal  and  for  paying  something 
for  the  privilege.  It  is  probable  that  a  freight  steamer  of  2,500  tons  net,  even  if  operated  at  a 
total  daily  cost  of  no  more  than  $175  while  running  between  Chile  and  Europe,  would  prefer  to 
pay  $1  a  ton  net  register  for  using  an  isthmian  canal  to  taking  the  route  through  the  Straits  of 
Magellan. 

If  the  daily  expenses  of  the  steamer  of  3,500  tons  net  are  $300  when  run  at  9  knots,  it  could 
save  $3,750  bv  using  a  IS'icaragua  canal,  and  $4,050  bj'  a  Panama  waterway,  instead  of  going 
around  through  the  Straits  of  Magellan.  If  the  expenses  were  $800  when  operated  at  a  speed  of 
10  knots,  it  could  save  $3,050  by  way  of  Nicaragua  and  $3,350  by  way  of  Panama.  A  toll  of  $1 
per  net  ton  on  the  ship  would  amount  to  $3,500,  and  for  the  reasons  just  stated  a  charge  of  that 
sum  for  the  use  of  the  canal  could  profitably  be  paid. 

The  chartered  steamers  above  referred  to  had  a  net  registered  tonnage  of  1,954  and  2,104 
tons,  respectively.  At  the  rate  of  $1  a  ton  their  toll  charges  would  amount  to  $1,954  and  $2,104. 
A  saving  of  ten  days  in  making  a  voyage  would  reduce  the  expenses  of  the  ship  whose  net  register 
is  2, 104  tons  $2,872.  It  is  evident  that  these  vessels  would  pay  $1  a  ton  for  the  use  of  an  isthmian 
canal  if  they  were  being  operated  over  a  route  that  the  canal  could  shorten  ten  days.  They  would, 
moreover,  use  the  canal  were  the  costs  of  chartering  and  operating  them  considerably  lower  than 
at  present. 

The  commerce  between  the  eastern  coast  of  the  United  States  and  western  South  America 
would  be  so  facilitated  by  an  isthmian  canal  that  a  toll  of  more  than  $1  a  ton  could  be  paid  for 
practically  all  this  trade.  The  distance  from  New  York  to  a  point  as  far  south  as  Valparaiso 
will  be  3,831  miles,  or  45  per  cent,  less  by  way  of  the  Panama  canal  than  via  the  Straits  of 
Magellan;  and  between  ports  on  our  coast  south  of  New  York  and  cities  on  the  west  coast  of 
South  America  north  of  Valparaiso  the  absolute  and  percentage  reduction  in  distance  will  be 
much  greater. 

ISTHMIAN-CANAL    TOLLS   AND   THE    AUSTRALIAN   TRADE. 

For  the  trade  from  New  York  to  Australia  the  best  route  at  present  is  that  bj'  way  of  the 
Cape  of  Good  Hope,  the  distances  by  the  Suez  and  Cape  routes  being  practically  the  same;  con- 
sequently, when  the  American  canal  has  been  opened  the  competition  for  the  New  York- 
Australian  trade  will  be  between  the  isthmian  canal  and  the  Good  Hope  routes.  The  distance 
from  New  York  to  Sydney  via'  the  Panama  Canal  and  Tahiti  will  be  9,852  nautical  miles,  and  by 
way  of  St.  Vincent,  the  Cape  of  Good  Hope,  Adelaide,  and  Melbourne  13,658,  the  difference  in 
favor  of  the  Panama  route  being  3,806  miles.  Adelaide  is  1,640  miles  nearer  New  York  by  the 
Panama  Canal,  and  Melbourne  is  2,656  miles  nearer. 

A  10-knot  vessel  going  out  from  New  York  to  Sydney,  Anstralia,  would  save  between  four- 
teen and  fifteen  days  by  taking  the  American  canal  route,  and  would  certainly  take  that  course 
if  the  toll  were  not  over  $1  a  ton  net  register.  Practically  all  vessels  going  to  Australia,  whether 
from  the  United  States  or  Europe,  call  at  Sydney,  because  it  is  the  most  important  port  and  is  a 
good  place  to  obtain  coal.  A  steamer  from  New  York  to  Melbourne  would  save  2,656  miles  and 
ten  days  by  going  by  way  of  Panama,  Tahiti,  and  Sydney  instead  of  by  the  way  of  the  Cape  of 
Good  Hope  and  Adelaide.     A  toll  of  $1  per  ton  could  profitably  be  paid  to  accomplish  this. 

There  is,  then,  no  probabilitj^  that  steamers  outbound  from  the  eastern  .seaboard  of  the 
United  States  to  Australia  will  take  the  Cape  of  Good  Hope  route  in  order  to  avoid  American 
canal  tolls  of  $1  a  net  ton.  The  route  taken  by  the  vessel  on  its  return  will  be  determined  by 
the  destination  of  the  Australian  exports.  If  the  vessel  should  secure  a  full  cargo  in  Australia 
for  America,  it  would  return  by  the  Panama  Canal.  The  ability  to  secure  a  partial  cargo  for  the 
United  States  and  a  partial  cargo  for  Europe  would  probably  cause  the  American  canal  to  be 
used.  Upon  reaching  the  United  States,  the  freight  destined  for  the  United  States  might  be 
exchanged  for  European  cargo,  with  which  the  ship  would  proceed  to  Europe;  or  the  steamer 
might  discharge  its  entire  cargo,  that  for  Europe  being  transhipped  to  another  vessel.  The  line 
steamer  making  the  round  trip  from  New  York  to  Australia  and  return  might  come  back  by  the 


378  PANAMA  CANAL  TRAFFIC   AND  TOLLS. 

Suez  route  at  times;  but  the  return  voyage  would  usually  be  hj  way  of  the  American  isthmus. 
If  the  American  tolls  were  much  lower  than  those  of  the  Suez,  the  route  across  the  Pacific  would 
certainly  be  taken. 

Steamers  securing  a  full  cargo  for  Europe  in  Adelaide,  Melbourne,  or  S3'dne3'  would  proba- 
bly return  by  the  Cape  of  Good  Hope,  although  cheaper  coal  in  American  stations  might  turn 
the  scale  in  favor  of  the  isthmian  canal.  The  distance  from  S.vdne}'  to  Liverpool  via  Melbourne, 
Adelaide,  King  Georges  Sound,  Colombo,  and  Aden  is  12,23:1:  miles,  and  via  Tahiti  and  Panama 
the  distance  is  12,591,  or  257  miles  more  by  the  American  canal.  A  vessel  starting  from  Melbourne 
for  Liverpool  would  find  the  route  via  S3'dney,  Tahiti,  and  Panama  1,507  miles  more  than  the 
one  via  Suez. 

A  ship  obliged  to  leave  Australia  in  ballast  or  with  but  little  freight  would  seek  cargo  either 
in  the  East  Indies,  New  Zealand,  Chile,  or  elsewhere  as  the  needs  of  commerce  might  determine. 
Those  ships  seeking  freights  west  and  north  of  Australia  would  naturally  return  by  the  Suez  Canal. 

THE    PHILIPPINE    TRADE. 

The  effect  of  the  isthmian  canal  upon  the  routes  followed  by  the  trade  between  our  eastern 
seaboard  and  the  Philippines  will  be  to  divert  a  considerable  share  of  the  traffic  from  the  Suez 
to  the  American  canal.  Steamers  now  use  the  Suez,  and  after  the  American  canal  has  been 
opened  the  choice  will  lie  between  the  two  canal  routes.  The  distance  by  the  Cape  of  Good  Hope 
is  too  great  to  pennit  that  route  to  compete  with  the  canals  for  the  traffic  handled  by  steamers. 
The  distances  from  New  Yoi'k  to  Manila  by  the  two  canals  are  nearly  equal — 11,601  miles  via 
Suez,  11.585  by  wav  of  Panama,  San  Francisco,  and  Yokohama,  and  11,675  via  Honolulu  and 
Guam.  From  our  South  Atlantic  and  Gulf  ports  the  distance  to  ]\Ianila  will  be  much  less  by  the 
American  canal  than  by  vcay  of  Suez.  As  explained  above  in  the  chapter  on  the  vessel  tonnage 
of  available  canal  traffic,  chartered  vessels  outbound  from  New  York  will  doubtless  go  sometimes 
by  one  route  and  sometimes  bj^  the  other.  The  chief  attractions  of  the  American  canal  route 
will  1)e  the  coasting  trade  of  both  seaboards  of  the  United  States — the  shortest  route  from  Central 
America  to  Manila  being  by  the  great  circle  which  passes  close  to  San  Francisco — the  large  volume 
of  exports  from  the  United  States  to  Asia,  the  Asiatic  coasting  trade  of  Japan,  Shanghai,  and 
Hongkong,  and  the  cheap  coal  obtainable  in  the  Caribbean  and  Japanese  coaling  stations.  The 
inducements  of  the  Suez  route  will  be  the  lai-ge  volume  of  exports  from  the  United  States  to 
Europe,  and  the  possibility  of  trading  at  numerous  intermediate  ports  in  the  British,  Dutch,  and 
French  East  Indies.  Likewise  chartered  vessels  retui'ning  to  the  United  States  from  Manila 
will  sometimes  come  by  way  of  Hongkong,  Shanghai,  Yokohama  (or  other  Japanese  ports), 
Puget  Sound.  San  Francisco,  Central  America,  etc.,  and  sometimes  by  the  East  Indian  ports,  the 
Suez  Canal,  and  Europe.  Line  steamers  plying  under  the  American  flag,  between  our  eastern 
seaboard  and  the  Philippines,  would  probablv  be  operated  through  the  isthmian  canal  and  would 
participate  in  the  trade  between  the  eastern  and  western  coasts  of  the  United  States. 

The  Philippine  Islands  are  so  nearly  antipodal  to  the  eastern  seaboard  of  the  United  States 
that  the  commei'ce  between  the  two  sections  will  be  divided  between  the  two  opposite  routes, 
unless  the  tolls  charged  at  one  of  the  canals  should  be  much  higher  than  those  levied  at  the  other. 
A  toll  of  nearly  82  at  Suez  and  Si  at  the  American  canal  would  doubtless  cause  the  latter  route 
to  secure  much  more  than  half  of  the  total  traflic.  The  certainty  of  competition  between  the 
Suez  and  American  canal  routes,  for  the  trade  between  our  eastern  seaboard  and  the  Philippines 
and  southern  China,  suggests  the  desirability  of  making  the  isthmian  canal  tolls  lower  than  those 
charged  by  the  Suez  Canal  Company,  in  order  that  as  much  as  possible  of  the  commerce  of  our 
antipodes  may  be  made  tributary  to  the  isthmian  canal.  In  view  of  the  fact  that  the  larger  part 
of  the  Suez  traflic  can  afford  to  pay  a  high  toll  in  preference  to  changing  from  the  Suez  to  some 
other  route,  it  is  not  probable  that  the  Suez  Canal  Company  will  find  it  profitable  to  make  radical 
reductions  in  its  charges — a  reduction  of  50  per  cent,  for  instance — in  order  to  hold  the  commerce 
of  the  regions  situated  on  the  margin  of  advantage  as  regards  the  use  of  the  easterly  or  westerly 
canal  routes;  consequently,  it  would  seem  that  the  adoption  of  moderate  tolls — not  to  exceed  $1  per 
ton  net  register,  American  measurement — for  the  use  of  the  American  canal  would  enable  that 
waterway  to  secure  a  large  share  of  the  commerce  carried  on  between  sections  so  situated  that 
their  trade  with  each  other  can  and  will  choose  between  the  Suez  and  American  routes. 

In  general  it  may  be  said  that  there  is  but  little  of  the  available  canal  traflic  that  will  be  kept 
from  using  the  waterway  by  a  toll  of  $1  a  ton,  net  register.  The  European  trade  with  western 
South  America,  and  the  corumerce  of  our  eastern  seaboard  with  Australia,  will  not  be  driven  from 
the  isthmian  canal  by  a  toll  of  that  amount;  but  it  seems  probable  that  a  higher  charge  than  $1 
a  net  ton  would  largely  restrict  the  tonnage  using  the  canal. 

The  tendency  of  traflic  to  follow  round-the-world  lines  will  be  emphazied  by  moderate  charges 


panajvia  canal  tkaffic  and  tolls.  379 

for  the  use  of  the  American  canal.  The  distance  between  Europe  and  the  eastern  shore  of  Asia 
is  somewhat  farther  by  waj'  of  Panama  than  b}'  way  of  Suez,  but  there  are  commercial  reasons 
why  a  portion  of  the  trade  between  these  two  sections  should  pass  by  the  eastern  and  western 
seaboards  of  the  United  States  and  through  the  American  canal.  A  toll  of  $1  a  net  ton  would 
probably  not  much  restrict  the  operation  of  those  commercial  forces. 

In  the  foregoing  discussion  a  toll  of  $1  a  net  ton  has  been  made  the  basis  of  reasoning 
because  that  represents  a  maxiuuim  beyond  which  the  charge  ought  not  to  go.  A  tariff  much 
higher  than  that  would  in  all  probability  so  restrict  the  tonnage  passing  the  canal  as  to  reduce 
the  revenue  derived  from  the  tolls.  Such  a  restriction  would  unfortunately  limit  the  industrial 
and  commercial  value  of  the  canal.  The  lower  the  tolls  the  greater  the  traffic  of  the  canal  and 
the  larger  the  industrial  and  commercial  benefits.  It  is  believed  that  a  toll  of  ^1  a  vessel  ton  net 
register  would  yield  an  income  sufficient  to  pay  the  expenses  of  operation  and  maintenance  and  a 
moderate  return  on  the  capital  invested.  Should  the  United  Strifes  prefer  to  levy  tolls  sufficient 
only  to  cover  the  cost  of  operation  and  maintenance,  a  tariff  of  one-third  of  a  dollar  a  ton  would 
probably  suffice. 

Note. — The  advantages  of  the  Panama  route  over  alternative  routes  as  regards  coal  costs — a  subject  that  is  fully 
considered  in  the  1912  report — are  such  as  to  enable  tolls  of  more  than  one  dollar  a  net  ton  to  be  charged  without 
limiting  the  traffic  and  the  industrial  and  commercial  value  of  the  Panama  Canal. 


APPENDIX    II. 


TOLLS   AND  OTHER   CHARGES    IMPOSED   BY   THE 
SUEZ   MARITLME   CANAL  COMPANY, 

381 


APPENDIX  II. 


TOLLS  AND  OTHER  CHARGES  IMPOSED  BY  THE  SUEZ  MARITIME  CANAL  COMPANY. 

THE    ACT   or   CONCESSIOX,   JANUARY    5,    1856. 

Akticle  14. 

We  hereby  solemnl}'  declare  for  ourselves,  and  for  our  successors  under  reserve  of  ratification  by  His  Im- 
])erial  Majesty  the  Sultan,  the  great  maritime  canal  from  Suez  to  Pelusiura  and  ports  belonging  to  it  henceforth 
and  forever  open,  as  neutral  passages  to  any  merchant  vessel  crossing  from  sea  to  sea  without  any  distinction, 
exclusion,  or  preference  whatever  for  persons  or  nationalities,  against  the  payment  of  dues  and  execution  of 
regulations  established  by  the  said  universal  company  grantee  for  the  working  of  the  said  canal  and  its  depend- 
encies. 

Article  17. 

To  iudeimiify  the  company  for  the  expenses  of  construction,  maintenance,  and  working  devolving  upon 
them  by  these  presents,  we  authorize  the  company  henceforth,  and  during  the  whole  term  of  their  lease, 
as  determined  by  clauses  1  and  3  of  the  preceding  article,  to  establish  and  levy  for  the  passage  through  the 
canals  and  ports  thereunto  appertaining,  navigation,  pilotage,  towage,  tracking,  or  berthing  dues  according  to 
tariffs  which  they  shall  be  at  liberty  to  modify  at  all  times  upon  the  following  express  conditions: 

First.  That  these  dues  be  collected  without  exception  or  favor  from  all  ships,  under  like  conditions. 

Second.  That  the  tariffs  be  published,  tlii-ee  months  before  they  come  into  force,  in  the  capitals  and  princi- 
pal commercial  ports  of  all  nations  whom  they  may  concern. 

Thii-d.  That  for  the  special  navigation  due  the  maximum  toll  shall  not  exceed  10  francs  per  ton  of  capacity 
on  vessels  and  per  head  of  passengers. 

[Note. — Articles  1  to  10  of  the  "Regulatious  for  the  Navigation  of  the  Suez  Maritime  Canal"  are  rules  governing  the  operation  of  the 
canal.  They  are  reprinted  as  an  appendix  to  "The  report  upon  the  measurement  of  vessels."  The  articles  here  reproduced — 11  to  16 — 
and  the  "Tariff  for  hire  of  plant"  contain  all  the  canal  company's  charges.] 

regulations  for  the  navigation  of  the  suez  canal. 
Article  11. 

Section  1.  The  net  tonnage  resulting  from  the  system  of  measurement  laid  down  b}'  the  International 
Commission  of  Constantinople,  and  inscribed  on  the  special  certificates  issued  by  the  competent  authorities 
or  on  the  ship's  official  papers,  is  the  basis  for  levying  the  special  navigation  due,  which  is  at  present  6  francs  25 
centimes  [after  Jan.  1,  1913]. 

In  le^^ing  the  dues  any  alteration  of  net  tonnage  subsequent  to  the  delivery  of  the  above-mentioned  cer- 
tificate or  papers  is  taken  into  account. 

Sec.  2.  The  canal  authorities  may  ascertain  whether  cargo  or  passengers  are  carried  in  any  spaces  wliich, 
as  shown  by  the  certificate  of  tonnage,  have  not  been  included  in  the  gross  measurement,  or  wliich  were  allowed 
as  deductions  for  the  accommodation  of  the  crew  after  measurement,  or  which,  being  within  the  engine,  boiler, 
or  bunker  space,  form  no  part  of  the  net  tonnage  shown  on  the  certificate;  and  generally  may  verify  whether 
all  the  spaces  which  ought  to  be  included  in  the  tonnage  are  entered  on  the  certificate  and  are  exactly  determined 
thereon. 

Sec.  3.  Every  vessel  not  pro^^ded  with  a  special  certificate  or  official  papers  givuig  the  net  tonnage  laid 
down  by  the  Constantinople  commission  is  measured  by  the  company's  officials  in  conformity  with  the  Con- 
stantinople ndes  and  must  pay  her  dues  on  such  measurement  until  she  produces  a  special  certificate  issued  by 
the  authorities  of  her  own  country. 

Sec.  4.  Ships  in  ballast  are  allowed  a  reduction  of  2  francs  50  centimes  per  ton  on  the  full  transit  rate. 

Any  ship  carrying  mails  or  passengers  or  having  in  her  holds  coals  or  merchandise  of  any  description,  in 
whatever  quantity,  is  not  considered  as  being  in  ballast. 

34998°— 12 26  ■  383 


384  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

The  space  occupied  by  bunker  coal  must  not  exceed  in  volume  75  per  cent  of  the  engine  room  as  measured.' 

Sec.  5.  Transit  dues  are  charged  on  all  passengers  at  the  rate  of  10  francs  per  passenger  above  12  years  of 
age  and  5  francs  per  passenger  between  3  and  12. 

Children  under  3  years  of  age  pay  no  dues. 

Sec.  6.  A  reduction  of  one-half  of  the  dues  is  allowed  to  ships  and  passengers  using  the  canal  only  as  far  as 
Ismailia,  or,  conversely,  from  Ismailia  to  either  Port  Said  or  Port  Thewfik  only. 

Sec.  7.  All  transit  and  passenger  dues  must  be  prepaid  at  Port  Said  or  Port  Thewfik. 

Sec.  8.  The  berthing  or  anchorage  dues  at  Port  Said,  Ismailia,  and  off  the  company's  embankment  at  Port 
Thewfik  are  fixed  at  2  centimes  per  ton  per  day,  whatever  be  the  duration  of  the  ship's  stay,  but  the  first  24 
hours  are  not  included.     These  dues  are  payable  every  10  days. 

Sec.  9.  Claims  for  errors  in  the  declaration  of  tonnage  or  in  the  levying  of  the  dues  must  be  sent  in  within 
a  month  after  the  ship's  passage  through  the  canal. 

No  erroneous  application  of  the  tariff  can  ever  be  brought  forward  as  a  precedent  against  the  company. 

Article  12. 

Sec.  1.  The  charge  for  towage  over  the  whole  length  of  the  canal  is  as  follows: 

(1)  When  towage  is  compulsory  (see  art.  2):  For  steamers,  50  centimes  per  ton  of  the  ship's  net  tonnage, 
subject  to  keeping  her  engines  going  or  in  readiness  to  assist  the  tug;  the  maximum  charge  being  2,500  francs; 
for  steamers  unable  to  give  the  assistance  of  their  propelling  power,  or  not  desiring  to  do  so,  and  for  sailing  ships 
above  400  tons  gross,  1  franc  per  ton  of  the  ship's  net  tonnage;  the  maximum  charge  being  5,000  francs. 

(2)  Wlien  towage  is  not  compulsory,  but  takes  place  at  the  captain's  request:  For  ships  using  their  engines 
or  holding  them  in  readiness,  1  franc  per  ton  of  the  ship's  net  tonnage,  1,200  francs  being  a  minimum  charge;  for 
ships  not  desiring  to  assist  the  tug  with  their  propelling  power,  2  francs  per  ton  of  the  sliip's  net  tonnage,  2,000 
francs  being  a  minimum  charge. 

(3)  When  a  tug  tows  a  vessel  one-half  of  the  length  of  the  canal  only,  one-half  only  of  the  dues  above  speci- 
fied for  towage  over  the  whole  length  is  charged. 

No  other  division  than  one-half  of  the  length  of  the  canal  is  admitted  in  charging  for  towage;  from  Ismailia 
to  Port  Said  being  considered  one-half,  and  from  Ismailia  to  Port  The-svfik  the  other  half. 

(4)  By  way  of  exception  to  the  above  scale  of  charges,  a  rate  or  charge  is  fixed  by  private  agreement  for  the 
towage,  whether  compulsory  or  optional,  of  lighters,  dredgers,  and  floating  appliances  of  any  description.  The 
towage  charge  for  sailing  ships  with  a  tonnage  of  400  tons  gross  or  under  is  also  fixed  by  private  agreement. 

All  sliips  towed  must  furnish  their  own  warps. 

Sec.  2.  The  charge  to  ships  applying  for  towage  to  or  from  the  roads  by  the  company's  tugs  is  fixed  at 
10  centimes  per  ton  of  their  net  tonnage:  At  Port  Said,  for  the  distance  between  the  inner  docks  and  the  end 
of  the  jetties  and  conversely;  at  Port  Thewfik,  for  the  cUstance  between  the  docks  and  the  roads  and  conversely; 
the  minimum  charge  being  25  francs. 

For  towage  over  a  greater  distance,  the  charge  is  fixed  by  private  agreement. 

Sec.  3.  When  a  ship  reciuires  a  tug  to  act  as  a  tender,  the  charge  for  convoying  is  1,200  francs  per  day  if  a 
tug  of  the  first  class  be  employed,  and  800  francs  per  day  for  a  tug  of  the  second  class.  In  the  event  of  stoppage, 
the  tug  renders  assistance  in  getting  the  vessel  underway  as  often  as  may  be  necessary.  If  the  vessel  is  towed 
by  the  tender  any  distance  exceeding  that  from  one  station  to  another,  the  charge  for  towage  may  be  demanded 
in  lieu  of  the  charge  for  doing  duty  as  a  tender. 

Sec.  4.  In  all  other  cases  tug  hire  is  invoiced  at  the  tariff  rates  aimexed  to  the  present  regulations. 

Sec.  5.  Shipowners  are  authorized  to  have  their  vessels  towed  or  convoyed  by  their  own  tugs,  or  tugs  on 
hire,  under  their  entire  responsibility.     Such  tugs  must  be  approved  of  by  the  canal  company. 

Ships  towed  or  convoyed  by  approved  tugs,  however,  pay  50  centimes  per,  ton  as  towage  dues. 

Such  approved  tugs,  whenever  they  tow  or  convoy  vessels  belonging  to  their  own  proper  owners,  are  free 
of  any  tax  whatever. 

Whenever  they  go  through  the  canal  for  the  purpose  of  meeting  vessels  of  their  owners  which  they  are 
about  to  tow  or  convoy,  or  when  returning  to  their  home  berth  after  having  towed  or  convoyed  the  said  vessels, 
tugs  are  not  hable  to  pajTuent  of  the  special  navigation  dues,  but  they  must  take  a  pilot  on  board. 

I  See  art.  16,  ol  the  regiUalions^or  the  measurement  at  tannage.    [Reproduced  in  Appendix  XI  ol  volume  on '  'Measurement  of  Vessels" 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  385 

They  must  carry  neither  goods  nor  passengers;  the  fact  of  having  on  board  passengers  or  goods  renders 
them  Uable  to  the  payment  of  all  dues  and  charges  to  which  ships  in  transit  are  subject. 

Whenever  approved  tugs  are  used  for  towing  or  convoying  vessels  not  belonging  to  their  own  proper  owners, 
the  same  dues  and  charges  are  levied  on  them,  for  every  passage  through  the  canal,  as  on  ships  in  transit. 

Notwithstanding  the  special  treatment  here  specified,  tugs  belonging  to  private  owners  are  subject  to  the 
strict  observance  of  all  other  articles  of  the  regulations  relative  to  vessels  underway  or  berthed. 

Akticle  13. 

Pilotage  in  or  out  of  Port  Said  is  charged  for  as  follows : 

(1)  For  ships  not  going  through  the  canal: 

By  day:  Francs. 

Steamers '. 25 

Sailing  vessels 10 

By  night  (between  sunset  and  sunrise):  ' 

Steamers 50 

Sailing  vessels 20 

(2)  For  ships  going  through  the  canal: 

By  day Free. 

By  night: 

Steamers 25 

SaiUng  vessels 10 

Pilotage  in  or  out  of  Port  Said  is  compulsory  on  all  ships  above  100  tons  gross  measurement. 
Pilotage  in  or  out  of  Port  Thewfik,  whether  by  day  or  by  night,  is  not  charged  for. 

When  the  pilot  is  kept  on  board  beyond  the  time  required  for  pilotage  proper,  a  charge  of  20  francs  per 
day  is  due. 

Article  14. 

The  navigation  of  all  undecked  vessels  is  governed  by  special  regulations,  a  copy  of  which  is  handed  to  the 
masters  of  all  craft  engaged  in  that  navigation  about  to  enter  the  canal. 

All  dues  are  charged  at  the  rates  prescribed  in  the  present  regulations,  notably  as  regards  the  transit  dues, 
article  11. 

When  navigation  does  not  extend  over  the  whole  length  of  the  canal  the  transit  dues  are  charged  propor- 
tionately to  the  distance  covered,  reckoned  from  station  to  station. 

Article  15. 

Shipping  of  every  description,  whether  native  craft,  lighters,  ships,  or  other  vessels,  effecting  a  complete 
return  journey  between  Ismadia  and  Port  Said,  or  conversely,  one  half  of  the  journey  bemg  effected  m  ballast 
or  empty  and  the  other  half  laden,  are  not  liable  to  the  special  navigation  dues,  and  are  charged  2  francs  60 
centimes  per  ton  on  the  laden  portion  of  the  journey  only.  Payment  must  in  every  case  be  made  previous  to 
the  commencement  of  the  journey. 

Any  other  dues  are  payable  in  full. 

Article  16. 

All  charges  prescribed  in  these  regulations  must  be  paid  in  cash.  Payments  may  be  "tendered  either  at 
the  company's  offices  in  Egypt,  or  at  the  head  office  in  Paris,  or  to  any  duly  appomted  agent  of  the  company. 

In  the  case  of  amounts  tendered  otherwise  than  at  the  company's  offices  in  the  Isthmus,  receipts  are 
delivered  to  shipowners  or  consignees,  which  the  captain  tenders  as  cash  to  the  company's  officials  in  Egypt 
appointed  to  collect  the  dues. 

In  case  of  payments  tendered  too  late  for  receipts  reaching  captains  by  post  the  company  are  prepared  to 
wire  out  to  their  Port  Said  office,  at  owner's  cost,  due  notice  of  the  pajrment. 

Wlienever  amounts  thus  paid  m  advance  are  insufficient  for  the  discharge  in  full  of  aU  charges  and  inci- 
dental expenses  due  by  ships  the  balance  must  be  paid  in  Egypt  at  the  company's  offices. 


386  PANAALA  CANAL  TRAFFIC  AND  TOLLS. 

Tariff  for  the  hire  of  plant. 

A  tugboat:  Francs. 

First  class,  per  hour 92 

Second  class,  per  hour 55 

Third  class,  per  hour 27 

Fourth  class,  per  hour 18 

A  lighter: 

First  category,  per  day 37 

Second  categorj',  per  day 19 

Third  category,  per  day 12 

A  sheer  hulk  of — 

60  tons,  for  the  first  hour 60 

40  tons,  for  each  consecutive  hour  after  the  first 30 

25  to  30  tons,  for  the  first  hour 50 

A  floating  self-propelling  crane  of  12  tons,  for  each  consecutive  hour  after  the  first 25 

A  sheer  hulk  of  8  tons: 

For  the  first  hour 35 

For  each  consecutive  hour  after  the  first 17 

Greindl  exhausting  pump: 

Hire  (of  whatever  duration) 500 

Plus— 

Per  hoiu'  of  working 50 

Per  hour  of  berthing  at  anchor 40 

Ordinary  lighter  pump,  per  hour - 15 

Diving  appliances: 

(1)  Hire  of  diving  apparel  and  appliances 8 

(2)  Each  hour  of  di\-ing  proper,  reckoned  from  the  moment  the  diver  enters  the  water  to  the  moment  he  leaves  it, 

over  and  above  the  hire  of  the  diving  apparel  and  appliances 6.  25 

Note. — For  tugboats,  hire  is  reckoned  from  the  time  of  first  firing;  for  the  other  appliances,  from  the  time  they  leave  the  depot.     It 

ceases  when  they  reenter  the  depot.     The  charges  for  towage  of  the  appliances  have  to  be  paid  o-\-er  and  above  the  amount  for  hire. 


APPENDIX    III. 


STATUTE  OF  THE  GERMAN  EMPIRE  CONCERNING  CHARGES 
FOR  THE  USE  OF  THE  KAISER  WILHELM  CANAL, 

JUNE  20,  1899. 


387 


Appendix   III. 


STATUTE  OF  THE  GERMAN  EMPIRE  CONCERNIITG  CHARGES  FOR  THE  USE  OF  THE  KA.ISER  WILHELM 

CANAL,  JUNE  20,  1899.' 

I,  Wilhelin,  by  God's  grace  German  Emperor,  King  of  Prussia,  etc.,  in  agreement  with  the  Imperial 
Coimcil  and  the  Diet,  order  the  following  in  the  name  of  the  Empire: 

Abticle  1. 

The  period  from  the  enactment  of  May  27,  1896  (Imperial  Gazette),  to  the  30th  of  September,  1899, 
inclusive,  within  which  the  determination  of  the  canal  tariff  governing  the  payment  of  fees  was  left  to  the 
Emperor  in  conjunction  with  the  Imperial  Council,  is  extended  to  the  30th  of  September,  1902. 

Article  2. 

The  exemption  from  the  payment  of  canal  fees  extends  only  to  those  vessels  which  are  authorized  to  fly 
the  imperial  war  flag,  public  ships  which  are  the  property  of  the  Empire  or  one  of  the  Federated  States,  and 
other  vessels  which  during  their  passage  through  the  canal  remain  exclusively  in  the  service  of  the  Empire 
or  of  one  of  the  confederated  States. 

This  exemption  does  no  apply  to  the  towing  charges  and  other  liabilities  for  special  sei-vices  of  the  canal 
authorities. 

Article  3. 

As  far  as  possible  the  canal  fees  are  paid  in  advance  unless  the  canal  officials  grant  an  extension  of  time. 
The  duty  of  calculating  the  approxiuiate  amount  of  the  total  fee  can  not  be  postponed  by  an  objection  to  the 
amount  determined. 

The  officers  of  the  canal  administration,  as  the  officers  intrusted  with  the  collection  of  dues,  are  required 
to  test  the  accm'acy  of  the  statements  in  the  papers  presented  for  the  determination  of  the  amount  of  the  canal 
fees,  in  case  it  is  necessaiy,  by  means  of  an  inspection  of  the  ship's  compartments  and  by  an  examination  of 
any  adcUtional  ship's  papers  or  bills  of  lading.  The  officers  can  only  require  sufficient  information  concerning 
other  documents  as  is  necessary  to  determine  whether  or  not  they  belong  to  either  the  ship's  papers  or  bifis 
of  lading. 

Article  4. 

An  objection  to  the  amount  of  the  canal  fees  can  be  made  at  the  imperial  canal  office  within  a  period  of 
six  months  after  the  notification  of  the  total  amount  to  the  captain  or  person  who  is  to  make  the  payment  in 
his  place.  An  appeal  from  a  decision  of  the  canal  authorities  must  be  made  to  the  chancellor  within  a  period 
of  one  month  after  the  finding.  The  fUing  of  an  appeal  against  the  decree  of  the  chancellor  is  permitted  within 
six  months  after  the  finding  as  long  as  the  payment  or  avoidance  of  the  claim  is  made  valid. 

The  notification  in  the  foregoing  case,  as  in  the  case  of  article  10,  can  be  made  through  an  officer  of  the 
canal  administration  or  other  public  officer. 

Article  5. 

A  subsequent  claim  for  canal  fees  for  a  discontinued  or  unimportant  trip  can  only  be  made  within  a  year 
of  the  trip.     The  liabilities  for  an  afterpayment  of  old  fees  become  void  in  three  years. 

1  Translation  by  Lieut.  Edward  B.  Dennis,  Coast  Artillery  Corps,  from  "  Betriebsordnung  Fuer  den  Kaiser- Wilbelm  Kanal,"  Reichs-Gesetzblatt  Feb.  23, 1911,  pp.  315 
etseq. 


390  PANAJVIA  CANAL  TRAFFIC  AND  TOLLS. 

Article  6. 

The  claims  of  the  canal  authorities  for  back  or  current  fees  are  outlawed  in  four  years  after  the  termination 
of  the  year  in  which  they  became  due. 

The  period  of  limitations,  without  regard  to  the  grounds  of  interruption,  as  expressed  by  the  municipal 
law,  is  terminated  by  a  demand  for  payment,  or  by  an  extension  of  time.  After  the  end  of  the  year,  which 
contains  the  point  of  time  determining  the  end  of  the  interruption,  or  hi  case  the  time  period  is  up,  a  new  period 
of  outlawry  of  four  years  begins. 

Article  7. 

The  canal  fees  and  the  expenses  incurred  in  theu'  determination  are  subject  to  collection  by  forcible  pro- 
cedure which  conforms  to  the  regulations  in  force  in  Prussia. 

Article  8. 

Whoever  undertakes  either  in  whole  or  in  part  to  evade  the  payment  of  fees  for  the  use  of  the  Kaiser  WUhelm 
Canal,  and  its  appurtenances,  and  especially  by  such  means  that  he — 

(a)  Exhibits  false  papers  to  be  used  in  the  calculation  of  the  fees,  to  the  officers  concerned,  especially  if 
they  are  sliip's  papers  which  are  false,  or  makes  false  statements  which  are  material  to  the  determination  of 
fees,  or 

(b)  Uses  the  Kaiser  WUhelm  Canal,  or  its  appurtenances,  by  evading  the  locks,  or  uses  the  canal  without 
a  pass,  in  case  a  pass  is  required,  will  be  punished  by  a  fine  in  amount  four  times  as  large  as  that  evaded,  but  at 
least  30  marks.     If  the  amount  witlilield  can  not  be  ascertained,  then  a  fine  of  from  30  to  1,500  marks  is  levied. 

In  addition  to  this  punishment,  the  amomit  withheld  must  be  paid. 

Article  9. 
The  liability  of  prosecution  for  acts  contrary  to  the  regulations  of  article  8  is  outlawed  in  three  years. 

Article  10. 

Fines  for  acts  in  violation  of  article  8  are  determined  by  a  sentence  conforming  to  article  459  of  the  Criminal 
Code.  The  abatement  of  such  a  sentence  is  made  under  the  authority  of  the  canal  superintendent.  The 
judgment  must  include  the  necessary  specifications  according  to  article  459,  part  2,  of  the  Criminal  Code,  and 
the  evidence  upon  which  the  fine  is  adjudged. 

To  aid  in  the  determination  of  the  facts  the  canal  authorities  can  cause  the  examination  of  the  accused. 
Forceful  measures  for  the  personal  appearance  are  not  authorized.  The  canal  office  must  summon  and  procure 
■witnesses  in  accordance  with  the  provisions  of  the  ordinance  of  prosecution.  Whoever  does  not  comply  with 
the  obligation  to  testify  wiU  be  arrested  at  the  request  of  the  canal  authorities  by  proper  application  of  articles 
50  and  69  of  the  ordmance  of  prosecution  by  the  court  in  whose  jurisdiction  he  dwells  or  is  stopping. 

Article  11. 

The  supermtendent  of  the  canal,  the  other  officers  of  the  canal  administration,  and  the  officers  intrusted 
with  the  collection  of  fees,  in  case  there  is  danger  of  delay,  are  authorized  to  effect  the  arrest  of  any  object  which 
could  be  used  as  a  medium  of  proof  for  any  investigation  of  importance. 

If  the  residence  of  the  defendant  is  unknown  or  is  situated  without  the  Empire,  the  superintendent  of  the 
canal  office  and  the  higher  executive  officers  of  the  canal  administration  are  authorized,  upon  violation  of  this 
act,  and  in  case  there  is  danger  of  delay,  to  attach  the  vessels,  together  with  their  accessories  and  other  accom- 
panying articles,  so  far  as  they  belong  to  him  and  are  subject  to  attachment,  for  the  amount  of  the  fine  which 
is  presumably  appropriate  to  the  defendant,  the  cost  of  the  proceedings  and  the  canal  fees.  The  canal  manage- 
ment may  refuse  the  release  until  the  payment  of  the  designated  amount. 

The  ratifications  for  a  seizure  which  is  not  directed  by  the  canal  office  should  be  sought  within  3  days 
after  the  ordering  of  the  seizure.  The  party  concerned  can  also  appeal  from  the  decision  of  the  superintendent 
at  any  time. 

A  seizure  requiring  confirmation  loses  its  effect  if  the  confirmation  ruling  does  not  take  place  within  a  week 
after  the  ordering  of  the  seizure  at  the  place  of  service  from  which  the  ordering  proceeds. 


pajStajvia  canal  traffic  and  tolls.  391 

Article  12. 

The  execution  of  the  finding  is  made  according  to  the  rule  of  article  7  by  the  officer  charged  wath  the  col- 
lection of  canal  fees. 

The  transformation  of  an  uncollected  fine  into  an  exemption  follows  accordmg  to  the  rules  in  article  463 
of  the  ordinance  on  criminal  proceedings,  and  in  article  28  and  article  29  of  the  penal  code  book. 

Article  13. 

The  fines  paid  on  account  of  judicial  findings  are  paid  into  the  Imperial  Treasury. 

Article  14. 

The  rules  of  the  statute  of  June  9,  1S95  (Imperial  Legal  Gazette,  p.  256),  governing  the  assistance  rendered 
in  the  collection  of  dues  and  in  the  execution  of  judgments,  apply  to  the  coIlectioii»of  canal  fees  and  to  the 
accomplishment  of  the  prosecution  by  the  Government  for  acts  contrary'  to  article  8. 

Article  15. 

These  regulations  go  into  effect  on  July  1,  1899. 

Authenticated  by  our  exalted  signature  and  affixed  with  the  imperial  seal. 

Published  at  Helgoland,  June  20,  1899. 

Wilhelm. 

[Location  of  the  seal.]  i 

Count    P0S.\D0WSKT. 


APPENDIX   IV. 


TOLLS   AND   OTHER   CHARGES   FOR  USE   OF   THE 
KAISER   WILHELM   CANAL. 


393 


Appendix  IV. 


RTJIES  FOR  THE  COLLECTION  OF  FEES  ON  THE  KAISER  WILHELM  CANAL.' 

TARIFF  I. 

I.  TOLLS  FOR  PASSING  THROUGH  THE  CANAL.^ 

Tolls  are  collected  from  all  vessels  using  the  canal;  for  exemptions  see  article  2,  law  of  June  20,  1899  (see 
p.  389. 

A.  From  loaded  vessels. 

1.  Through  traffic  (from  the  Elbe  to  Kiel  Bay  and  in  opposite  direction): 

(a)  General  traffic.  Marks. 

For  the  first  400  net  register  tons  each 0.  60 

Each  ton  above  400  and  up  to  600,  Laclusive 40 

For  each  ton  above  600  to  800,  inclusive 30 

For  each  ton  above  800  net 20 

Minimum  amount  to  be  paid 10. 00 

(6)  German  coastwise  trafiic  (law  of  May  22,  1881 — Imperial  Law  Gazette,  p.  97) — 

Displacement  up  to  50  net  register  tons,  inclusive,  for  each 40 

Minimum 6.  GO 

2.  Local  traffic  (from  the  Elbe  or  the  Baltic  to  a  place  on  the  canal  or  in  opposite  direction,  or  locally  on 
the  canal) ;  for  each  net  register  ton : 

(a)  For  passing  one  of  the  terminal  locks : 20 

(6)  For  each  section  of  o  kilometers  or  fraction 01 

Minimum  when  passing  one  terminal  lock 4.  00 

Minimum  otherwise 1.  00 

EXCEPTIONS. 

(aa)  Vessels  in  the  coastwise  traffic  (law  of  May  22,  1881,  Imperial  Law  Gazette,  p.  97)  up  to  50  net  register  tons,  inclusive,  pay  for 
each  net  register  ton : 

(aaa)  For  passing  one  of  the  terminal  locks 10 

(bbb)  For  e\-ery  5  kilometers  or  fraction 01 

Minimum  when  passing  one  terminal  lock 3.  00 

Minimum  otherwise 1.  00 

(66)  Vessels  with  papers  from  any  of  the  water  routes  crossed  by  the  canal  in  the  Burg-Kudensee  Valley  pay  tor  the  section 

from  the  Elbe  to  kilometer  23,  inclusive,  for  every  net  register  ton 10 

Minimum 1.  00 

(cc)  Small  open  row  or  sailing  boats  go  free  of  charge  in  the  canal,  but  for  passing  one  terminal  lock  they  pay 1. 00 

(dd)  For  navigating  a  section  no  higher  tees  are  charged  than  tor  the  entire  canal  in  the  through  traffic.     The  same  rule  applies  tor 
navigating  the  canal  in  its  entire  length  in  the  local  trafiic  it  a  vessel  either  enters  the  canal  with  a  cargo,  unloads  part  or  all 
of  it,  and  proceeds  in  the  same  direction,  or  if  she  enters  empty,  takes  a  cargo  in  the  canal  and  proceeds  in  the  same  direction. 
The  sum  of  the  charges  on  these  local  trips  equals  the  charges  on  one  through  triji  with  cargo. 

If  a  vessel  engaged  in  local  traffic  passes  through  the  whole  canal,  passing  through  both  terminal  locks,  and  breaks  the  trip  only 
in  the  canal  and  for  less  than  24  hours  at  a  time,  then  she  is  charged  at  least  the  amoimt  payable  in  case  a  through  trip  had 
been  applied  for  at  the  beginning. 
In  all  other  cases,  where  the  entire  caunal  is  navigated  in  the  local  traffic,  only  the  rule  of  paragraph  1  applies  for  every  such 
passage. 

1  Translation  hv  Chaplain  F.  J.  Feinler,  1st  Infantry,  from  CentraMatfur  das  Dculshe  Reich.  Supplement  No.  -33. 
^During  months  October  to  March,  both  inclusive,  the  charges  payable  under  Sec.  I  are  increased  10  per  cent. 

395 


396  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

B.  From  empty  or  ballasted  vessels. 

Such  vessels  pay  the  tolls  under  1  and  2,  less  20  per  cent,  regardless  of  the  minimum  tolls  allowed. 

C.  From  dredges. 

Through  traffic  (la  and  h):  For  every  gross  register  ton,  0.60  marks. 

Local  traffic:  For  every  gross  register  ton  the  same  tolls  as  are  given  under  2a  and  h.  Dredges  are  always 
treated  hke  vessels  with  cargo. 

II.  TOWAGE  CHARGES  IN  THE  KAISER  WILHELM  CANAL. 

1.  Besides  the  tolls  specified  in  Tariff  I,  towage  charges  must  be  paid: 

A.  For  using  the  regular  tow  trains  of  the  canal  office — 

1.  Through  traffic—  Marfa. 

(a)  With  cargo 0. 40  -0.  30 

(6)  Empty  or  ballasted 25  -  .  20 

((•)  Coastwise  traffic  up  to  50  net  register  tons,  inclusive 25 

2.  Local  traffic  for  every  5  kilometers  or  fraction — 

(a)  With  cargo 02  -  .  015 

Minimum 10  -  .  10 

(6)  Coastwise  traffic  up  to  50  net  register  tons,  inclusive 015 

Minimum 10 

(c)  Vessels  empty  or  in  ballast  pay  as  per  2a  and  b,  less  20  per  cent. 

Minimum 10  -  .  10 

Note.— Rates  in  first  column  are  for  each  net  register  ton  up  to  200,  second  column  above  200. 

B.  For  use  of  a  special  tugboat  of  the  canal  office— 

(a)  Towing  through  the  whole  canal —  Marks. 

1.  Tugboat  class  A  (400-500  indicated  horsepower) 240.  00 

2.  Tugboat  class  B  (200-300  indicated  horsepower) 180.  00 

3.  Tugboat  class  C  (180  indicated  horsepower) 135. 00 

4.  Tugboat  class  D  (100  indicated  horsepower) 90.  00 

(6)  Towing  only  a  section  of  the  canal :  For  every  10  kilometers  or  fraction — 

1.  For  a  tug  of  class  A r 30.  00 

2.  For  a  tug  of  class  B 15. 00 

3.  For  a  tug  of  class  C 12.  50 

4.  For  a  tug  of  class  D - 1 0. 00 

(Except  where  the  charges  under  A  are  higher.) 

For  larger  tugboats  there  are  correspondingly  higher  rates. 
The  charges  under  h  are  in  force : 

(o)  For  trip  of  empty  tugboat  to  starting  place  of  tow  train. 

(6)  For  the  section  of  towage  or  escort. 
The  sections  in  a  and  h  are  summed  up  and  rounded  to  the  next  higher  ten.     No  charges  are  collected  for 
the  return  trip  after  leaving  the  tow  train. 

C.  For  towage  in  the  locks  of  Brunsbuettelkoog  and  Holtenau,  see  Section  VII. 

2.  If  fault  or  wish  of  the  master  cause  any  delay  at  the  beginning  or  end  of  the  trip,  or  any  interruption 
of  more  than  two  hours,  the  charges  payable  therefor  are  for  every  hour  or  fraction  thereof,  according  to  the 
rates  of  I  Bb. 

3.  The  payments  for  use  of  the  tugboats  of  the  canal  office  for  assistance  in  accidents  (towing  out  of  the 
way,  pumping,  etc.)  are  ever}'  hour  or  fraction  thereof: 

1.  Tugboat  class  A 12. 00 

2.  Tugboat  class  B 9-20 

3.  Tugboat  class  C 6.  50 

4.  Tugboat  class  D 5.  20 

The  payable  service  of  the  tugboats  begins  with  the  departure  to  the  place  of  accident  and  ends  with  their 
return  to  the  home  station  or  place  of  duty. 


PANAMA.  CANAL  TRAFFIC  AND  TOLLS. 
III.  FEES  PAID  TO  THE  CANAL  PILOTS. 

[See  section  12c  of  operating  regulations  of  the  Kaiser  Wilhelm  Canal  in  volume  on  the  Measurement  of  Vessels,  Appendix  20.] 


397 


Telephone  station. 


3.3 
6.3 
or  7.3 
13.8 
18.0 
20.8 
22.9 
30.0 
34.7 
40.0 
49.0 
49.5 
56.0 


Ostennoor. 
Kudensee.. 


58.3 

61.0 

62.8 

65.0 

66.8 

68. 2 

69.5 

71.8 

75.0 

80.0 

84.0 

85.0 

86.0 

92.6 

95.2 

Burgi.D 

Hochdonn 

Dueckerswisch 

Hohenhoem  (Schafstedt) . 

Graenenthal 

Fischerhuette 

Oldenbuettel 

Hamwedel  (Breiholz) 

Luinau  River 

Schuelp 


Bninsbuettelkoog. 


.do.. 


Westerroenfeld 

RendsbuTg  (district  harbor) 

Dock  at  Saatsee 

Upper  Eider,  west  of  kilometer  65 

Borgstedt 

Lehmbeck 

Rade  or  Schimau 

Steinwehr 

Sehestedt , 

Kl.  Koenigsfoerde 

Rosenkranz 

Flemhuder  See ' do.. 

Landwehr ' do.. 

Levensau , do. . 

Knoop do.. 


4.20 
4.60 


4.60 
3.60 


2.40 
2.50 
3.00 
3.60 
4.00 
4.60 
3.80 
3.00 
2.80 
2.60 
1.40 


Ferry,  Kudensee. 

Ferry,  Burg  i.  D. 
Ferry,  Hochdonn. 

Lay-by  at  Hohenhoem. 

Canal  master. 

Lay-by  at  Fischerhuette. 

Ferry,  Oldenbuettel. 

■Lay-by  at  Breiholz. 


Lay-by  at  Westerroenfeld. 
Dock  at  Saatsee. 


Lay-by  at  Audorf. 

Lookout  station  at  Lehmbeck. 

Lay-by  at  Rade. 

Ferry,  Sehestedt. 

Lookout  station  at  Koenigsfoerde. 

Lay-by  at  Grosser-Nordsee. 

Do. 
Ferry,  Landwehr. 
Canal  master. 
Signal  station  for  praam-bridge. 


IV.  TARIFF  FOR  THE  PILOT'S  OVERTIME  ON  BOARD. 

If  the  master  wishes  the  pilot  to  stay  on  board  during  a  voluntary  stop  of  over  two  hours,  he  must  pay 
a  special  fee  of  1  mark  for  every  hour  or  fraction  at  the  terminal  office. 

V.  TARIFF  FOR  THE  RENT  OF  CUSTOMS  SIGNALS,  ETC. 

A.  SIGNALS,- ETC.,  OF  THE   CANAL  OFFICE. 

Marks. 

For  rent  of  signals  (flags  and  light)  for  every  trip 2.  00 

For  rent  of  green  globe  lantern 1.  00 

The  articles  shall  be  returned  to  the  pilot  at  the  terminal  station,  and  full  value  shall  be  paid  for  damaged 
articles. 

B.  SIGNALS   OF  THE    STATE    OP   HAMBURG. 

Marks. 

For  rent  of  a  complete  set 6.  00 

For  rent  of  a  customs  flag  alone 2. 00 

VI.  TARIFF  FOR  REVENUE  ESCORT  BY  A  PILOT. 

Masters  of  sailing  vessels  or  other  towing  vessels  who  omit  to  have  their  vessel  sealed  by  the  revenue 
service  for  the  trip  through  the  Kaiser  Wilhelni  Canal  or  to  have  her  classed  with  the  free  traffic,  or  whose  vessels 
or  cargoes  do  not  admit  of  seaUng  by  the  revenue  service,  shall  for  the  sake  of  customs  regulation  pay  a  special 
fee  to  the  pilot  acting  as  customs  escort. 

Marks. 

(a)  In  the  through  traffic 20.  00  , 

(5)  For  every  10  kilometers  or  fraction 2. 00 


398  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

VTI.  TARIFF  FOR  TOWING  VESSELS  AT  BRUNSBL^TTELKOOG  AND  HOLTENAU. 

Towing  services  done  by  canal  office  steamers  at  Brunsbuettclkoog  and  Holtenau,  independently  of  a 
towing  trip  through  the  canal  by  canal  steamers  in  through  or  local  traffic,  unless  Section  II,  1,  afiows  a  smaller 
fee.  are  charged,  in  addition  to  the  tolls  prescribed  in  Section  I,  for  every  vessel: 

'  ^  Marks. 

(o)  Towing  service  up  to  half  hour 5.  00 

(*>)  Towing  service  up  to  1  hour 10. 00 

(c)  Towing  service  for  every  subsequent  hoiu' 5-00 

Fractional  half  hours  or  hours  are  taken  for  full.  Tliis  tariff  applies  to  every  towing  service  at  the  locks 
and  neighboring  waters;  for  instance,  when  towing  from  the  anchorage  to  the  inner  harbor  and  in  the  opposite 
direction,  from  the  anchorage  into  the  lock  chamber,  from  the  chamber  to  the  anchorage  or  to  the  inner  harbor 
docks,  etc.  No  charge  is  made  if  tliis  service  is  accorcUng  to  the  intent  of  section  22  of  the  Operating  Regulations. 
(See  Appendix  20  in  volume  on  the  Measurement  of  Vessels.) 

EXPLANATIONS   OF  THE   ABOVE   TARIFF   SCHEDt7LES. 

1.  Passenger  boats,  pleasure  boats,  war  vessels,  and  dredges  are  always  considered  as  vessels  with  cargo. 

2.  Steamers  (motor  boats)  and  rowboate,  when  using  a  regulation  tow  train,  pay  the  same  rates  as  sailing  vessels. 

3.  Yachts,  dredge  praams,  diver  praams,  and  tugboats  are  not  considered  as  being  in  the  coastwise  traffic.  Tugboats  are  "empty" 
if  they  have  no  cargo  of  their  own. 

4.  In  computing  fees,  fractional  marks  are  rounded  to  multiples  of  10  pfennigs,  neglecting  amounts  of  less  than  5  pfennigs  and  making 
5  and  above  equal  10  pfennigs. 

The  total  amounts  of  fees  are  rounded  up,  all  fractional  marks  being  taken  for  full. 

Fractional  register  tons  are  taken  for  full  if  more  than  one-half  and  smaller  h-actions  are  neglected. 

5.  The  fees  include  compensation  for  the  use  of  all  facilities  of  the  canal,  and  for  the'  pilotage  between  the  stations  of  Brunsbuettclkoog, 
Nuebbel,  and  Holtenau. 

6.  Vessels  going  to  or  coming  from  the  North  Sef  are  charged  pilotage  on  the  Elbe  together  with  the  canal  pilotage  in  one  amount. 
Should  the  canal  tolls  of  Tariff  I  amount  to  less  than  the  Elbe  pilotage,  the  vessel  shall  pay  the  difference  of  Elbe  pilotage  above  the  canal 
tolls,  in  case  a  pilot  was  asked  for  on  the  Elbe. 

7.  If  the  application  does  not  name  a  certain  destination  (vessels  on  order),  the  highest  amount  of  fees  is  charged. 

8.  The  canal  fees  become  due  on  entering  the  canal  locks. 

9.  A  duplicate  receipt  is  made  out  upon  payment  of  10  pfennigs. 

10.  "Ballast"  means  sand,  earth,  building  waste,  undressed  stone,  and  water,  as  long  as  they  serve  to  give  stability  to  the  vessel. 

TARIFF  II. 

COLLECTION  OF  TOLLS,  TOWAGE  CHARGES,  AND  PILOTAGE. 
I.  General  Rules. 

1.  The  payment  of  all  dues  shall  as  a  rule  be  made  at  the  entrance  offices  (customhouses  I  at  Brunsbuet- 
telkoow  and  Holtenau).  The  dues  are  based  on  the  vessel's  tomiage  certificate  made  out  on  a  German  blank 
or  one  countersigned  in  Germany,  indicating  net  capacity  in  tons,  and  on  the  duphcate  application  blanks, 
which  serve  also  as  a  receipt.  (A  few  blanks  are  given  the  master  free  of  cost  by  the  pilot  or  the  customhouse. 
A  greater  number  of  blanks  can  be  obtained  for  the  cost  of  printing — 100  for  1  mark — from  the  customhouses 
or  the  canal  office.)  That  copy  mil  be  taken  as  authentic,  which  was  used  in  the  apphcation  and  has  been 
approved  by  the  customhouse.  One  copy  is  left  mth  the  collector;  the  other  serves  as  the  master's  passport 
during  the  canal  trip.  On  leaving  the  canal,  the  master  shall  cut  off  the  receipt,  handing  the  second  paper  to 
the  pilot,  master  of  the  tugboat,  master  of  the  locks,  or  his  deputy. 

2.  No  ^  essel  is  allowed  to  enter  or  leave  the  canal  till  the  master  presents  the  stamped  receipt  as  proof  of 
having  paid  the  duties. 

Vessels  which  have  no  pilot  or  which  are  not  attached  to  a  tow  train  must  show  the  receipt  to  the  master 
of  locks  on  duty. 

3.  Vessels  going  from  a  place  outside  to  a  place  on  the  canal,  and  using  the  same  route  for  return,  can  pay 
the  dues  for  the  return  also  at  the  time  they  enter. 

4.  Vessels  starting  or  continuing  their  trip  from  a  place  on  the  canal,  and  having  made  no  application  for 
this  trip,  shall,  before  starting,  buy  tickets  from  the  lay-by  tenders,  ferry  tenders,  canal  masters,  harbor  master 
of  the  district  port  at  Rendsburg,  the  lock  master  at  the  Burgerau  Locks,  or  at  the  coke  ovens  of  Rade.     (Vessels 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  399 

subject  to  pilotage,  taking  their  pilots  on  board  at  Nuebbel  or  in  the  Rendsburg  Locks,  can  obtain  their  tickets 
from  the  pilot.)  If  such  a  vessel  arrives  at  the  terminal  she  shall  immediatelj-  pay  the  accrued  dues,  or  at  least 
inside  of  eight,  days  after  bujang  the  passage  ticket,  to  the  customhouse  indicated  on  the  ticket. 

II.  Application  Blanks. 

A.  Through  Traffic. 

White  blanks  are  to  be  used  according  to  model  A  for  the  section  between  Holtenau-Brunsbuettelkoog. 

B.  Local  Traffic. 

1.  For  trips  from  outside  to  a  place  on  the  canal,  the  application  blanks  of  model  B,  -n-ith  red  stripe,  shall 
be  used. 

2.  For  trips  from  a  place  on  the  canal  to  an  outside  point,  the  tickets  are  of  model  C,  \vith  yellow  stripe. 

3.  Vessels  domiciled  in  the  Burg-Kudensee  Valley  use  for  the  section  from  the  Elbe  to  kilometer  23,  and  in 
the  opposite  direction,  the  application  blanks  of  model  D,  wnth  green  stripe. 

III.  Verification  of  the  Statements  Made  in  the  Applications. 

The  officials  of  the  canal  office  have  the  right  at  all  times  to  verify  in  a  tactful  manner  the  statements  made 
by  the  masters  in  their  application.     The  masters  are  obliged  to  assist  the  officers  diligently. 

The  destination  as  well  as  the  starting  point  of  a  trip  in  local  traffic  must  be  truthfully  incUcated  to  the 
collector. 

IV.  Measltiing  Capacity. 

Vessels  which  do  not  possess  regulation  (Sec.  I)  tonnage  certificates  are  measured,  or  their  measurement  is 
verified  as  to  net  capacity  by  the  officials,  and  dues  are  collected  accordingly.  The  final  decision  is  reserved  to 
the  canal  office. 

Protests  against  overcharge  of  canal  dues  should  be  made  inside  of  six  months  after  the  bill  of  charges 
was  tendered  to  the  master  or  other  party  settling  accounts  to  the  imperial  canal  office.  (Art.  IV  of  act 
fixing  tolls  for  the  navigation  of  the  Kaiser  Wilhelm  Canal,  June  20,  1899 — Consult  Appendix  III,  above,  of 
this  volume.) 

A  set  of  ship's  papers,  recognized  in  the  German  Empire,  must  be  presented  to  the  canal  office  inside  of  a 
further  term  of  six  months  from  the  date  of  the  summons. 

V.  Passage  Tickets. 

Vessels  navigating  the  entire  canal  repeatedly  under  the  same  conditions  can  buy  passage  tickets  of  model  E. 

These  tickets  are  good  for  two  j'ears  from  date  of  sale  and  are  sold  by  the  imperial  canal  office  at  Kiel  and 
b}'  the  customhouses  I  at  Holtenau  and  Brunsbuettel  directly  or  bj^  mail.  The  request  must  be  accompanied 
by  an  application  blank  ffiled  out  in  duplicate  and  by  the  ship's  papers. 

VI.  Monthly  Settlements. 

The  canal  office  is  empowered  but  not  obliged  to  accept  on  special  request  monthly  settlements  of  accounts 
from  frequent  navigators  of  the  canal  who  pay  at  least  300  marks  per  month. 

AppUcants  for  this  accommodation  may  obtain  the  conditions  from  the  imperial  canal  office. 

VII.  Mediltms  of  Exchange. 

Paj'inents  are  accepted  not  only  in  German  money  but  also  in  English,  Scandina^-ian,  Dutch,  Russian, 
and  Latin  Monetary  Union  currency.  These  foreign  moneys  are  accepted  according  to  a  table  of  exchange 
placarded  in  the  collectors'  offices. 

Checks  of  the  Reichsbank  system,  payable  to  the  imperial  post  treasury  (canal  office)  at  Kiel,  are  accepted 
in  place  of  cash  payments. 

VIII.  Examination  of  Accounts. 

The  canal  office,  through  its  officials,  reserves  the  right  to  verify  statements  at  any  time  to  determine 
whether  the  vessels  navigating  the  canal  have  made  proper  payments  of  dues. 
34998°— 12 27 


APPENDIX  V. 


SCHEDULE  OF  PORT  CHARGES  AND  DEMURRAGE  FEES 

IMPOSED  BY  THE  KAISER  WILHELM 

CANAL  ADMINISTRATION. 


Appendix  V. 


SCHEDUIE  OF  PORT  CHAEGES  AND  DEMUERAGE   FEES    IMPOSED  BY  THE  KAISER  WILHELM  CANAL 

ADMINISTRATION.' 

Tariff  for  Harbor  Dues. 

Authorized  decree  of  June  4,  1894,  concerning  the  rates  for  the  canal  extendmg  from  Holtenau  to  Rendsburg 
and  the  use  of  the  facilities  at  the  Holtenau  Harbor.     (Imperial  Legal  Gazette  of   1894,  pp.  464,  467-469.) 

In  accordance  with  the  report  of  May  28  of  this  j^ear  in  agreement  with  the  federal  council,  I  approve  the 
accompanying  tariff  for  the  canal  extending  from  Holtenau  to  Rendsburg  and  for  the  use  of  the  port  facilities 
at  Holtenau  Harbor,  on  the  basis  of  the  provision  in  article  3,  paragraph  2,  of  the  statute  of  March  16,  1886> 
concerning  the  construction  of  the  North  Sea  Canal.     (Imperial  Legal  Gazette,  p.  58.) 

This  decree  is  published  through  the  Imperial  Legal  Gazette. 

New  Palace,  June  14,  1894.  ■  Wilhelm 

VON   BOETTICHER. 

To  the  Imperial  Chancellor. 

Tariff  or  ScHEDtmE  of  Charges. 

According  to  which  the  dues  are  to  be  levied  for  the  use  of  the  port  facilities  at  Holtenau  Harbor  at  the  eastern  outlet  of  the  North  Sea 

Canal.] 

The  following  are  the  harbor  dues: 

I.  For  vessels: 

1.  Up  to  and  including  12  cubic  meters  net  capacity  for  each  vessel —  Pfennig. 

Upon  arrival 10 

Upon  departure 10 

Remark. — Vessels  of  the  above  described  class  are  exempt  from  the  dues,  if  they  are  empty,  or  in  ballast,  or  carry  cargoes  com- 
posed entirely  of  items  of  the  kind  mentioned  below  in  26  of  the  list  of  exceptions. 

2.  Over  12  up  to  and  including  170  cubic  meters  net  capacity  (for  each  cubic  meter  net  capacity) — 

(a)  When  loaded — 

Upon  arrival 1 

Upon  departure 1 

(5)  WTien  in  ballast  or  empty  (for  each  2  cubic  meters  net  capacity) — 

Upon  arrival 1 

Upon  departure 1 

3.  Over  170  cubic  meters  net  capacity  (for  each  cubic  meter  net  capacity) — 

(a)  WTien  loaded — 

Upon  arrival 4 

Upon  departure .• 4 

(6)  When  in  ballast  or  empty — 

Upon  arrival 2 

Upon  departure 2 

II.  For  lumber  rafts  (per  cubic  meter): 

(n)  Of  oak  timber  and  lumber 10 

(by  Of  other  woods • 5 

I  Translation  by  Lieut.  Edward  B.  Dennis,  Coast  Artillery  Corps,  from  Betriebsordnun^  Fuer  den  Kaiser  Wilhelm  Kanal,  Reichs-Gesetzblatt,  Feb.  23, 1911,  pp.  61-58. 

403 


404  ■  PANAIkIA  CANAL  TRAFFIC  AND  TOLLS. 

EXCEPTIONS. 

1.  Sliips  of  more  than  170  cubic  meters  net  capacity  are  required  to  pay  only  half  the  foregoing  dues  deter- 
mined under  I  3  a  and  b,  if  they  travel  between  ports  in  German  territory  only,  without  touching  at  foreign 
ports. 

2.  wSliips  whose  entire  cargo  (a)  does  not  not  exceed  2,000  kilograms  in  weight,  or  (b)  consists  exclusively 
of  roof  plates,  roofuig  slate,  drain  pipes,  cement,  brick;  cement-,  granite-,  stucco-,  lime-,  building-,  plaster-,  or  com- 
position blocks  of  all  kinds;  chalk,  clay,  pipe  clay,  seaweed,  sand,  firewood,  peat,  coal,  coke,  raw  sulphur,  salt, 
hay,  straw,  thatching,  fertilizer,  or  fresh  fish,  are  only  required  to  pay  the  harbor  dues  described  in  I  3&. 

3.  Vessels  which  make  regidar  or  frequent  calls  at  the  harbor  at  Holtenau  during  the  year  are  given  a  choice 
of  pajnng  dues  determined  under  the  tariff  for  each  individual  call,  or  of  making  a  yearly  settlement,  which  is 
determmed  by  the  Chancellor. 

EXEMPTIONS. 

The  following  vessels  are  exempted  from  the  payment  of  harbor  dues  upon  entrance  and  exit: 

1.  Vessels  which  enter  the  harbor  without  a  cargo  and  leave  in  the  same  condition. 

2.  Vessels  which  on  account  of  maritime  accidents  or  other  misf&rtunes  or  because  of  ice  floes,  storms, 
or  adverse  wmds,  and  all  vessels  which  only  enter  the  harbor  for  news  or  to  receive  orders  and  leave  again 
without  loading  or  unloading  their  cargo,  and  without  disposing  of  any  part  of  it. 

3.  Vessels  up  to  and  includmg  170  cubic  meters  net  capacity,  if  tliej'  are  en  route  to  one  of  the  German 
ports  and  enter  the  harbor  at  Holtenau  for  the  sole  purpose  of  unloading  or  receiving  a  part  of  the  cargo  which 
may  not  exceed  a  tenth  part  of  the  net  capacity. 

4.  Vessels  which  enter  the  harbor  while  en  route  through  the  North  Sea  Canal  for  the  purpose  of  adjusting 
duties  or  for  the  payment  of  canal  dues,  if  the}^  do  not  unload  any  cargo  amounting  to  more  than  a  tenth  part 
of  their  net  capacity. 

5.  Vessels  which  go  out  to  or  return  from  the  relief  of  ships  which  are  stranded  or  are  in  danger,  if  they 
are  not  used  for  imloading  or  recovering  the  shipwrecked  goods. 

6.  Lighters,  if  the  ship  unloaded  or  loaded  from  the  lighter  itself  pays  harbor  dues. 

7.  Ships  which  enter  Holtenau  Harbor  oidy  to  land  or  take  on  passengers  and  leave  immediately  after- 
wards; in  like  manner  so-called  pleasure  boats  and  steam  tugs. 

8.  Public  vessels  which  are  the  property  of  the  Empire  or  one  of  the  confederated  states,  or  vessels  which 
promote  objects  to  the  sole  benefit  of  the  Empire  or  a  state.  However,  in  the  latter  case  only  upon  the  presen- 
tation of  a  free  pass. 

9.  Pilot  boats,  in  so  far  as  they  are  used  in  carrying  out  their  purpose. 

10.  Boats  which  belong  to  vessels  which  are  subject  to  dues,  and  also  all  vessels  up  to  and  including  5  cubic 
meters  net  tonnage. 

11.  Vessels  which  bring  in  stone  gathered  from  the  sea  bottom,  or  from  the  shore,  upon  arrival;  if  they  leave 
the  harbor  either  empty  or  in  ballast  they  are  also  exempted  upon  departure. 

12.  Vessels  which  are  used  only  for  fishing. 

ADDITIONAL    EEGULATIONS. 

1.  Li  case  the  dues  are  levied  according  to  I  2h,  if  the  number  of  cubic  meters  is  not  divisible  by  2,  the 
surplus,  if  it  amounts  to  less  than  1  cubic  meter,  is  left  out  of  the  calculation;  but  in  case  it  amounts  to  more 
than  1  cubic  meter  it  is  counted  as  2  whole  cubic  meters.  In  the  transformation  of  the  weight  of  cargo  or 
dead-weight  tonnage  into  vessel  capacity  500  kilograms  are  counted  as  equal  to  1  cubic  meter  net  capacity. 

2.  The  area  at  Holtenau  subject  to  the  payment  of  harbor  dues  is  bounded  on  the  north  by  the  shore,  on 
the  south  by  the  center  line  of  the  North  Sea  Canal,  on  the  west  by  a  line  drawn  perpendicular  to  the  center 
line  of  the  canal  at  97.267  kilometers  at  the  end  of  the  lighthouse,  on  the  east  by  the  extension  of  the  shore  line 
of  the  fill  lying  to  the  north  of  the  canal. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 


405 


In  accordance  with  rule  1,  No.  8,  of  the  Canal  Tariff  of  June  4, 1895  (Imperial  Gazette,  p.  241),  the  follow- 
ing tariff  is  announced.     (Official  Gazette  of  the  Royal  Administration  at  Schleswig  of  1896,  pt.  17,  pp.  129-131.) 

'5'akiff  or  Schedule  of  Charges. 

[For  the  public  use  of  the  iimer  harbor  and  the  loading  wharves  in  the  Kaiser  WUhelm  Canal  at  Brunsbuettelkoog.] 

The  use  of  the  inner  harbor  at  Brunsbuettelkoog  for  the  purpose  of  unloading  and  loading  is  only  per- 
mitted, with  power  of  revocation  at  any  time,  to  such  an  extent  that  its  utihty  and  its  through  traffic  will  not 
be  limited. 

A.    HARBOR    DUES. 


1.  For  all  ships  in  the  Kaiser  Wilhelm  Canal  which  are  subject  to  dues: 

Upon  arrival,  for  each  cubic  meter  net 

Upon  departure  of  the  same 

Minimum  for  each  vessel  upon  arrival  and  departure 

2.  For  lumber  rafts: 

(a)  Of  oak  timber  or  lumber,  per  cubic  meter 

(!>)  Of  other  woods 

I  To  bulky  articles  in  the  meaning  of  this  tariff  belong  roof  plates,  roofing  slate,  drainpipes,  cement,  brick;  cement-,  granite-,  stucco-,  building-,  plaster-,  or  composi- 
tion blocks  of  all  kinds,  chalk,  clay,  pipe  clay,  seaweed,  sand,  firewood,  peat,  coal,  coke,  raw  sulphur,  salt,  hay,  straw,  thatching,  fertilizer,  fresh  fish,  and  quartz  sands. 
Ships  with  mixed  cargo  pay  dues  under  Tariff  No.  II. 

B.  DEMUHRAGE. 

1.  Sliips  wliich  pay  harbor  dues  pay  demurrage  for  the  use  of  the  harbor  for  more  than  one  week,  and 
for  each  succeeding  week,  per  cubic  meter  net,  0.02  mark. 

2.  Ships  which  do  not  pay  harbor  dues,  if  they  voluntarily  remain  in  the  harbor  longer  than  one  day,  pay 
demurrage  for  the  second  and  each  succeeding  day,  per  cubic  meter  net,  0.02  mark. 

The  most  to  be  paid,  however,  is  the  harbor  dues  payable  under  A  and  the  demurrage  payable  under  B 
1  at  the  end  of  one  week. 

3.  Barges  (coal  hulks,  etc.)  which  at  the  owner's  wish  remain  for  a  period  of  time,  or  which  are  consigned 
to  a  definite  anchorage  for  a  considerable  period  of  time,  shall  pay  such  dues  as  are  specially  determined  by  the 
canal  office. 

C.  WHARFAGE    DUES. 

Marks. 

1.  For  bulky  articles,  if  no  special  provision  is  made,  for  each  100  kilograms  and  fraction 0. 02 

2.  For  all  goods  other  than  those  mentioned  in  article  1  and  articles  3  to  10,  for  each  100  kilograms  and  fraction 03 

3.  For  firewood  per  1  cord  (cubic  meter) 045 

4.  (a)  For  lumber  and  timber,  per  cubic  meter 15 

(6)  If  the  cargo  consists  entirely  of  lumber  and  timber,  per  cubic  meter  net  vessel  capacity 15 

5.  For  building  stone  and  roof  tUes,  per  1,000 06 

6.  For  all  kinds  of  vehicles,  per  vehicle 70 

7.  For  horses,  steers,  cows,  per  animal 60 

8.  For  colts,  young  cattle,  calves,  sheep,  goats,  and  hogs,  per  animal 30 

9.  For  poultry  and  pigs,  per  animal 03 

10.  For  rough  granite,  according  to  the  net  capacity  of  the  ship  in  which  it  is  brought,  per  cubic  meter 03 

The  minimum  payment  for  each  consignee  must  amount  to  at  least  0.10  mark. 


406  PANA^IA  CANAL  TRAFFIC   AND  TOLLS. 

Exemptions. 
a.  harbor  dues. 

The  following  are  exempted  from  the  payment  of  harbor  dues: 

1.  Vessels  which  enter  the  harbor  without  a  cargo  and  leave  the  harbor  again  in  the  same  condition. 

2.  Vessels  which  enter  the  harbor  because  of  trouble  at  sea  or  other  misfortune,  on  account  of  ice  floes, 
storms  or  adverse  winds,  as  well  as  all  vessels  wliich  enter  for  news  or  to  receive  orders  and  leave  again  without 
unloading  or  taking  on  anj^  cargo  or  disposing  of  it,  either  in  whole  or  in  part. 

3.  Vessels  which  enter  the  harbor  while  en  route  through  the  Kaiser  Wilhelm  Canal  and  do  not  unload  or 
take  on  cargo  amounting  to  more  than  a  tenth  part  of  their  net  capacity. 

4.  Vessels,  which  go  out  to  or  return  from  the  relief  of  ships  which  are  stranded  or  are  in  danger,  if  they 
are  not  used  for  unloading  or  recovering  sliipwrecked  goods. 

5.  Lighters,  if  the  ship  unloaded  or  loaded  from  the  lighter  itself  pays  harbor  dues. 

6.  Vessels  which  enter  the  harbor  for  the  sole  purpose  of  landing  passengers,  or  taking  them  on  board, 
and  leave  immediately  afterwards;  this  also  applies  to  the  regular  passenger  steamers,  even  if  they  unload  or 
load  freight. 

7.  Public  vessels,  which  are  the  property  of  the  Empire  or  of  one  of  the  confederated  states,  or  those  wliich 
solely  promote  the  welfare  of  the  Empire  or  of  one  of  the  confederated  states ;  however,  in  the  latter  case  only  upon 
the  presentation  of  a  free  pass. 

8.  Pilot  boats,  in  so  far  as  they  are  used  to  carry  out  their  purpose. 

9.  Boats  which  belong  to  vessels  subject  to  the  payment  of  dues,  and  all  vessels  up  to  and  including  5 
cubic  meters  net  capacity. 

10.  Vessels  which  bring  in  stones  gathered  from  the  sea  bottom  or  from  the  shore,  upon  arrival;  and  if 
they  leave  the  harbor,  either  empty  or  in  ballast,  they  are  also  exempted  upon  departure. 

1 1 .  Vessels  which  are  used  only  for  fishing. 

B.    DEMURRAGE. 

The  following  are  exempt  from  the  payment  of  demurrage: 

1.  The  regular  passenger  steamers  between  trips. 

2.  The  vessels  mentioned  under  5  and  under  7  to  9. 

The  vessels  mentioned  under  Nos.  10  and  11,  and  also  such  other  vessels  as  are  detained  longer  than  one 
day  in  the  harbor  on  account  of  trouble  at  sea,  or  other  misfortune,  or  on  account  of  ice  in  the  canal,  in  the 
Elbe,  or  in  Kiel  Bay,  and  on  account  of  storms  may  have  the  demurrage  dues  rebated  either  wholly  or  in  part 
by  the  Imperial  authorities. 

C.    WHARFAGE    DUES. 

The  following  are  exempted  from  the  payment  of  wharfage  dues: 

1.  Articles  belonging  to  the  Emperor,  the  Imperial  Government,  and  the  Kingdom  of  Prussia — in  fact 
everything  sliipped  on  the  account  of  the  Emperor,  the  Empire,  or  the  Ivingdom  of  Prussia. 

2.  Passengers  and  their  baggage  arriving  or  departing  on  passenger  steamboats. 

3.  Fresh  fish  and  sea  sand. 

4.  Merchandise  and  goods  transferred  from  one  ship  to  another  without  use  of  the  wharf. 

5.  Empty  packing  cases  which  have  been  used,  such  as  chests,  casks,  sacks,  etc. 

Additional  Regulations. 

In  case  the  collection  of  fees  is  made  according  to  the  net  capacity  of  the  ship,  if  the  number  of  cubic 
meters  is  not  divisible  by  2,  the  surplus,  if  it  amounts  to  less  than  1  cubic  meter,  is  omitted  from  the  calcula- 
tion, but  in  case  it  amounts  to  1  or  more  cubic  meters,  it  is  counted  as  2  whole  cubic  meters. 

In  case  of  the  conversion  of  the  weight  of  cargo  or  dead-weight  tonnage  into  vessel  capacity,  500  kilo- 
grams are  considered  the  equivalent  of  1  cubic  meter  net  capacity. 

The  fees  to  be  paid  are  rounded  off  to  an  even  0.10  meter;  amounts  under  0.05  meter  are  not  considered, 
and  from  0.05  meter  up  to  0.10  meter  they  are  counted  as  0.10  meter. 


PANAIHA  CANAL  TRAFFIC   AND  TOLLS.  407 

The  collection  of  wharfage  is  based  upon  the  customs  declaration,  but  if  no  such  declaration  has  been 
made  the  collection  is  based  on  the  verbal  statement  of  the  warehouse  manager,  or  upon  the  information  sup- 
plied by  the  harbor  master. 

Tliis  tariff  goes  into  effect  on  the  day  of  publication. 

Kiel,  April  10,  1896. 

Imperial  Canal  Office. 

In  accordance  with  the  provisions  of  part  I,  No.  8,  of  the  canal  tariff  of  August  4,  1896,  the  following 
ariff  is  published.     (Imperial  Legal  Gazette,  p;  683.) 

Tariff  or  Schedule  of  Charges. 

[For  the  use  of  the  public  unloading  and  loading  docks  and  wharves  (harbors)  on  the  Kaiser- Wilhelm  Canal:  To  Hochdonn,  18  kilo- 
meters; to  Hohenhoern,  22.9  kilometers:  to  Schafstedt,  22.9  kilometers;  to  Oldenbuettel,  40  kilometers;  the  Luhnau  River,  49.5 
kilometers;  Westerroenfeld,  58.3  kilometers;  Schestedt  south,  7.5  kilometers;  Koenigsfoerde,  80  kilometers;  Landwehr,  86  kilometers; 
Levansau,  92.6  kilometers;  and  Holtenau  (inner  harbor).] 

Note. — The  unloading  and  loading  docks  and  wharves  at  Hochdonn  belong  jointly  to  the  Empire  and  to  the  village  of  Suederhastedt; 
those  at  Hohenhoern  and  on  the  Luhnau,  to  the  Empire  and  to  the  district  of  Rendsburg.  The  other  imloading  and  loading  docks  and 
wharves  mentioned  belong  to  the  German  Empire. 

A.    HARBOR    DUE.S. 

Harbor  dues  for  entrance  and  clearance  are  payable  at  the  same  time: 
For  vessels  of  6  to  10  cubic  meters  net  capacity,  10  pfennigs. 
For  vessels  of  11  to  30  cubic  meters  net  capacity,  20  pfennigs. 
For  vessels  of  31  to  50  cubic  meters  net  capacity,  40  pfennigs. 
For  vessels  of  51  to  75  cubic  meters  net  capacity,  60  pfennigs. 
For  vessels  of  76  to  100  cubic  meters  net  capacity,  80  pfennigs. 
For  vessels  of  more  than  100  cubic  meters  net  capacity,  100  pfennigs. 

B.  demurrage. 
Vessels  which  remain  in  the  harbor  more  than  1  week,  without  unloading  or  loading,  pay  demurrage: 

Marks. 

If  their  net  capacity  is  not  o\'er  50  cubic  meters 1.  00 

If  their  net  capacity  is  from  51  to  100  cubic  meters 1.  50 

If  their  net  capacity  is  more  than  100  cubic  meters 2.  00 

for  each  month  and  fractional  month. 

EXEMPTIONS. 

The  following  are  exempted  from  the  payment  of  harbor  dues: 

1.  Vessels  which  enter  and  clear  the  harbor  without  cargo. 

2.  Vessels  which  have  been  obliged  to  seek  refuge  in  the  harbor, 

3.  Lighters,  in  case  the  ship  which  unloaded  or  loaded  from  the  lighter  has,  itself,  paid  harbor  dues. 

4.  Vessels  which  only  enter  the  harbor  to  land  passengers  or  to  take  them  on  board  and  leave  immediately 
afterwards;  also  steamships  in  the  regular  passenger  service,  whether  or  not  they  unload  or  load  freight. 

5.  Public  vessels  which  are  the  property  of  the  Empire,  or  of  a  confederated  state,  or  used  only  in  the 
interest  of  the  Empire,  or  the  local  state;  in  the  latter  case,  however,  only  upon  the  presentation  of  a  free  pass. 

6.  All  vessels  up  to  and  including  5  cubic  meters  net  capacity.  Vessels  mentioned  under  5  and  6  are  also 
exempted  from  payment  of  demurrage. 

In  figuring  the  harbor  dues  and  demurrage,  fractional  parts  of  a  half  cubic  meter  or  more,  are  counted  as 
whole  cubic  meters,  and  smaller  fractional  parts  are  omitted  from  the  calculation. 

In  case  of  the  conversion  of  weight  of  cargo  or  dead-weight  tonnage  into  net  vessel  capacity,  500  kilograms 
are  taken  as  the  equivalent  of  1  cubic  meter  net  capacity. 

Tliis  tariff  goes  into  effect  on  February  1  of  this  year. 

Kiel,  January  12,  1901. 

Imperial  Canal  Office. 

(Published  in  the  official  organ  of  the  royal  government  of  Schleswig  of  1901,  p.  21.) 


APPENDIX  VI. 


MANCHESTER  CANAL:    "SHIP  DUES"  AND  OTHER  CHARGES 
PAYABLE  BY  SHIP  OWNERS. 

409 


APPENDIX  VI. 


MANCHESTER  CANAI:  "SHIP  DUES"  AND  OTHER  CHARGES  PAYABLE  BY  SHIP  OWNERS. 

[This  schedule  cancels  all  previous  schedules  of  ships'  charges,  and  operates  ou  and  from  November  1,  1911,  until  further  notice.] 

Port  of  Manchester. 

schedule  oi^  ship  dues  and  charges  and  conditions  for  the  use  of  the  manchester  ship  canal  co.'s  tugs, 
also  other  charges  payable  by  ship  owners. 

The  "hcarbor  and  port  of  Manchester,"  which  inchides  the  whole  length  of  the  ship  canal,  was  constituted 
by  the  Manchester  Sliip  Canal  act,  1SS5,  and  was  extended  bj'  the  Manchester  Ship  Canal  act,  1911.  The 
Manchester  Ship  Canal  Co.  is  the  harbor  authority  of  the  port. 

Dock  Office,  Manchester,  September  30,  1911. 


Index. 

SUBJECT. 

Page. 

Appropriated  berths 417 

Ballasts 424 

Canal  tolls,  wharfage,  and  quay  porterage,  paj-ment  of 416 

Cargo  for  other  ports  brought  by  vessels  into  the  canal 417 

Custody  of  and  regulations  with  regard  to  goods  while  lying  on  the  dock  quays  or  in  the  transit  sheds 418 

Cranes,  regulations  and  rates  for  the  hire  and  use  of 425-427 

Coal  shipments 427^29 

Discharging  and  loading  by  ship's  crew 425 

Dangerous  goods 417 

Extra  services 424 

Electric  sheer  legs  at  Eastham  Lay-bye,  regulations  and  rates  for  hire  of 427 

Fires,  lights,  and  smoking 418 

Grain,  discharging  of ,  etc 423 

Lights 425 

Objectionable  goods 417 

Overtime , 424 

Offices,  information  regarding  canal  company's 429 

Passengers,  canal  toll  on 416 

Pilotage  charges  and  arrangements 418 

Pig  iron 423 

Pitch  shipments 424 

Rates  (and  regulations)  for  loading  and  discharging  vessels  at  the  Manchester  docks 419 

Rent  on  vessels  remaining  in  the  canal 412 

Refuse,  etc.,  as  to  treatment  of 418 

Ship  dues,  schedule  of 412 

Ship  dues,  information  regarding 413 

Ship  dues,  differential 413 

Ships'  manifests  and  ships'  passes 414 

Salt 424 

Towage 414 

Transhipment  cargo 417 

Upper  Mersey  dues 417 

Vessels  entering  the  ship  canal  for  shelter 414 

Water  (fresh)  for  ships'  use 425 

Wood  goods,  discharging  of 422 

411 


412 


PANAMA  CANAL  TRAFFIC   AND   TOLLS. 


Schedule  of  ship  dues  per  net  registered  ton  payable  on  vessels  entering  the  Manchester  Ship  Canal  and  chargeable  upon  each  registered  ton. 


Eastham  or 
any  of  the 
other  River 
Mercy  estu- 
ary locks 
and  Runcorn 
Swing  Bridge. 


Upon  vessels  trading  between- 


Eastham  or 
any  of  the 
other  River 
Mersey  estu- 
ary focks 
and  places  be- 
yond Run- 
corn Swing 
Bridge  up  to 
the  entrance 
to  Latchford 
Locks. 


Eastham  or 
any  of  the 
other  River 
Mersey  estu- 
ary locks 
and  Latch- 
ford locks 
(including 
locks)  and 
places  above 
up  to  Man- 
chester 
Docks. 


Period  a  ves- 
sel may  re- 
main in  canal, 
after  which 
rent  will  be 


Section  B.        Section  C. 


Between  St.  David's  Head  and  the  Mull  of  Galloway,  including  the  Isle  of  Man  and  the  Island  of  Anglesea 

Between  the  Mull  of  Galloway  and  Dimcan's  Bay  Head,  including  the  Orkney  Isles  and  all  the  islands  on  the 
western  coast  of  Scotland;  and  between  St.  David's  Head  and  the  Land's  End,  including  the  Sc illy  Islands  and 
the  east  coast  of  Ireland  from  Cape  Clear  to  Mailing  Head 

Allpartsof  the  east  and  southern  coasts  of  Great  Britain  between  Duncan's  Bay  Head  and  the  Land's  End,  includ- 
ing the  islandsof  Shetland;  and  all  parts  ofthe  westcoast  of  Ireland  from  Cape  Clear  to  Mailing  Head, including 
the  islands  on  that  coast 

All  parts  of  Europe  to  the  northward  of  Cape  Finisterre,  and  to  the  westward  of  the  North  Cape,  and  without  the 
Cattegat  and  Baltic  Sea,  and  including  the  islands  of  Guernsey,  Jersey,  Aldemey,  Sark,  the  Faro  Islands,  and 
Iceland 

All  parts  within  the  Cattegat  and  Baltic,  including  the  whole  of  Sweden,  the  White  Sea,  and  all  parts  to  the  east- 
ward of  the  North  Cape;  all  parts  in  Europe  to  the  southward  of  Cape  Finisterre  without  the  Mediterranean, 
Greenland,  Davis  Straits,  Canaries,  Western  Islands,  Madeira,  and  Azores 

All  parts  of  the  east  coast  of  North  America,  Nei.^'foundland,  the  West  Indies,  the  east  coast  of  South  America  to 
the  northward  of  R  io  La  Plata  inclusive;  all  parts  of  the  West  Coast  of  Africa,  and  islands  to  the  northward  of  the 
Cape  of  Good  Hope,  and  all  parts  within  the  Mediterranean,  including  Gibraltar,  the  Adriatic,  the  Black  Sea 
and  Archipelago,  the  island  of  St.  Helena,  Ascension,  and  the  Cape  de  Verde  Islands;  and  all  parts  in  South 
America  to  the  southward  of  the  Rio  La  Plata,  in  the  Pacific  Ocean,  and  in  Africa  and  Asia,  to  the  eastward 
of  the  Cape  of  Good  Hope , 


s.    d. 

0    2 


s.    d. 
0    2 


Statutory  method  of  ascertaining  the  tonnage  of  unregistered  vessels  for  the  purpose  of  charging  ship  dues  thereon. 


Dead-weight  carrying  capacity  of  vessel. 

Assumed  registered  tonnage. 

Exceeding  50  tons  and  not  exceeding  75  tons. 

30  tons. 

Any  dead-weight  carrying  capacity  in  excess  of  a  complete  multiple  of  25  tons  to  be  reckoned  as  25  tons. 

Rent  of  1  penny  per  not  registered  ton  per  week  is  chargeable  on  vessels  remaining  in  the  canal  after  the 
expiration  of  the  period  allowed  in  the  preceding  schedule.  Should  vessels  remain  in  the  canal  bej'ond  six 
months  from  date  of  entry,  double  these  rates  will  be  charged.  Masters  and  [or]  owners  or  other  persons  in  charge 
of  vessels  so  Ipng  up  will  be  required  to  conform  in  all  respects  to  the  company's  rules,  regulations,  and  bjMaws 
for  the  time  being  in  force. 

1.  Ship  dues  are  payable  on  a  vessel's  net  registered  tonnage,  as  well  as  upon  any  space  that  may  be  occu- 
pied by  deck  cargo,  as  defined  in  the  merchant  shipping  act,  1894,  whether  the  deck  cargo  is  discharged  within 
the  ship  canal  or  not. 

2.  The  master  of  every  registered  vessel  shall,  on  demand,  produce  the  certificate  of  the  registry  of  such 
vessel.  If  any  such  master  refuse  or  neglect  to  make  such  production  on  demand,  he  shall  be  liable  to  a  penalty 
not  exceeding  £20. 

3.  Vessels  entering  the  ship  canal  and  not  passing  beyond  the  Runcorn  Swing  Bridge  will  pay  ship  dues 
as  for  section  A  of  the  canal,  and  bej'ond  Runcorn  Swing  Bridge  to  the  entrance  to  Latchford  Locks  as  for 
section  B  of  the  canal,  and  from  Latchford  Locks  (including  the  locks)  to  Manchester  as  for  section  C  of  the 
canal,  as  per  schedule  of  dues  shown  on  page  412. 


PANAJIA  CANAL   TRAFFIC   AND   TOLLS.  413 

4.  Vessels  entering  the  sliip  canal  with  cargo  are  charged  as  from  the  most  distant  port  of  lading,  and 
when  loaded  outward  as  for  the  most  distant  port  of  destination.  Vessels  entering  in  ballast  are  charged  as 
from  the  port  whence  they  sailed,  and  when  outward  in  ballast  as  for  the  port  of  destination. 

5.  Vessels  having  paid  dues  on  their  inward  voyage  as  from  the  most  distant  port  of  lading  will  not  be 
charged  dues  on  their  outward  voyage  when  the  dues  chargeable  as  for  the  most  distant  port  of  destination  do 
not  exceed  the  amount  paid  for  inward  dues  on  the  net  registered  tonnage,  but  should  the  outward  dues  exceed 
the  inward  the  difference  in  excess  will  then  be  charged. 

6.  Any  person  appljdng  to  make  pajonent  of  dues  may  be  questioned  as  to  the  most  distant  port  froin 
which  such  vessel  has  arrived  or  to  which  such  vessel  is  bound;  and  if  such  person  shall  refuse  to  answer  any 
reasonable  question,  or  shall  willfidly  give  a  false  or  untrue  answer,  he  shall  be  liable  to  a  penalty  not  exceed- 
ing £50. 

7.  Vessels  discharging  cargo  in  more  than  one  section  of  the  canal  on  tlie  way  up  or  down  will  be  charged 
ship  dues  on  their  inward  voyage  at  the  rate  applicable  to  the  section  wherein  the  greatest  portion  of  such 
cargo  has  been  discharged. 

8.  Vessels  discharging  cargo  in  sections  A  and  [or]  B  only,  and  afterwards  loading  cargo  outward  in  any 
other  section  or  sections,  will  be  charged  on  their  outward  voyage  at  the  rate  applicable  to  the  section  wherein 
the  greatest  portion  of  their  entire  cargo  has  been  loaded. 

9.  Vessels  coming  to  section  C  with  cargo  for  discharge  there,  and  calling  at  any  point  in  sections  A  and  [or] 
B  on  the  way  down  to  load  cargo  outward,  will  be  charged  ship  dues  on  their  outward  voyage  at  the  section  C 
rate  only.  If  such  vessels  load  cargo  in  sections  A  and  [or]  B  whilst  on  the  way  up  to  section  C,  ship  dues  will 
be  charged  on  their  outward  voyage  at  the  rate  applicable  to  the  section  wherein  the  greatest  portion  of  their 
entire  cargo  has  been  loaded. 

10.  Vessels  entering  the  ship  canal  in  ballast  and  loading  cargo  in  more  than  one  section  of  the  canal  will 
be  charged  ship  dues  on  their  outward  voyage  at  the  rate  applicable  to  the  section  wherein  the  greatest  portion 
of  their  entire  cargo  has  been  loaded. 

11.  Vessels  trading  exclusively  on  the  Eiver  Mersey  and  entering  the  ship  canal  through  any  of  the  estuary 
locks,  either  loaded  with  transshipment  cargo  for  loading  to  outward  seagoing  vessels,  or,  if  in  ballast,  to  load 
transsliipment  cargo  from  import  seagoing  vessels  in  the  canal  for  lighterage  to  places  either  within  or  without 
the  canal  (on  the  Mei-sey),  will  not  be  charged  ship  dues;  but  if  such  vessels  enter  the  canal  to  load  cargo  from 
any  warehouse,  grain  elevator,  and  [or]  storage  ground  therein,  they  will  be  charged  ship  dues  at  the  rate  appli- 
cable to  the  section  wherein  such  cargo  is  loaded. 

DIFFERENTIAL    SHIP    DUES. 

1.  Vessels  entering  the  ship  canal  with  cargoes  not  less  than  one-half  of  which  sliall  consist  of  all  or  any 
of  the  following  articles,  and  discharging  the  whole,  of  any  such  cargoes  in  the  canal,  will  be  charged  only  one- 
half  of  the  ship  dues  specified  in  the  preceding  schedule,  provided  they  leave  the  canal  in  ballast  or  load  cargoes 
in  the  canal,  consisting  exclusively  of  all  or  any  of  the  articles  named  in  clause  2. 

The  articles  above  referred  to  are  bauxite,  blende  ore  or  black  jack,  copper  ore,  copper  precipitate,  copper 
pyrites,  copper  regulus,  esparto  grass,  green  fruit  from  Mediterranean  ports,  guano,  iron  ore,  iron  pyrites,  lead 
ore,  magnesite  ore,  manganese,  manganese  ore,  manganiferous  iron  ore,  phosphate,  phosphate  rock,  sulphur  ore, 
and  sulphur  pyrites. 

2.  Vessels  entering  the  sliip  canal  in  ballast  or  with  cargoes  not  less  than  one-half  of  which  shall  consist 
of  all  or  any  of  the  articles  named  in  clause  1,  and  discharging  the  whole  of  any  such  cargoes  in  the  canal,  and 
loading  cargoes  in  the  canal,  consisting  exclusively  of  all  or  any  of  the  following  articles,  wOl  be  charged  one- 
half  of  the  ship  dues  specified  in  the  preceding  schedule : 

Bricks,  coal,  coal  briquettes,  purple  ore  briquettes,  coke,  creosote  in  bulk,  pig  iron,  iron  ore,  phosphate, 
pitch,  salt,  salt  cake,  slag,  steel  rails,  and  superphosphate. 

3.  Steamers  entering  the  ship  canal  to  discharge  or  load  cargo  may  call  at  any  point  for  bunker  coal  with- 
out being  charged  any  additional  ship  dues;  but  if  entering  the  canal  for  the  purpose  of  bunkering  only,  they  will 
be  charged  differential  ship  dues  as  if  cargo  coal  had  been  loaded  in  the  section  wherein  the  bunker  coal  has 
been  taken. 


414  PANA]\IA  CANAL  TRAFFIC   AND   TOLLS. 

4.  Vessels,  including  A'achts,  launches,  small  steamers,  and  any  other  craft  not  cargo  carrying  (exclusive 
of  tugs,  licensed  by  the  canal  company,  attending  on  vessels),  using  the  sliip  canal  from  point  to  point,  will  in 
lieu  of  ship  dues  be  liable  to  lockage  toll,  as  follows: 

For  passing  through  any  lock,  5s.  per  lock  each  way,  in  addition  to  canal  toll  on  passengers  carried. 

Minimum  charge  for  lockage,  £1  Is. 

Upon  payment  of  the  foregoing  lockage  charge,  such  vessels  may  remain  in  the  canal  seven  clear  days, 
after  which  laying-up  rent  will  be  cliarged  thereon  at  the  rates  noted  in  the  "rent"  clause  on  page  412. 

VESSELS    ENTERING    THE    SHIP    CANAL    FOR    SHELTER. 

Any  vessel,  whether  in  ballast  or  loaded,  entering  the  ship  canal  for  shelter  from  stress  of  weather  or  other 
cause  will  be  charged  ship  dues,  with  the  following  exceptions,  viz: 

If,  after  leaving  the  canal,  any  vessel  which  has  incurred  ship  dues  is  immediately  obliged  to  return  (with 
the  same  cargo,  if  laden),  and  reenters  the  canal  from  stress  of  weather  or  other  sufficient  cause,  such  vessel 
shall  not  become  liable  to  further  ship  dues  under  such  circumstances. 

In  either  of  the  foregoing  cases  the  vessel  must  not  remain  in  the  canal  longer  than  two  tides.  In  the  event 
of  a  vessel  remaining  longer  than  two  tides,  she  wUl  become  chargeable  with  rent  as  per  the  "rent"  clause  on 
page  412,  except  that  such  rent  shall  be  chargeable  after  the  first  two  tides  in  lieu  of  after  the  expiration  of 
the  period  specified  in  the  schedule  of  ship  dues. 

Barges  when  leaving  the  canal  must  pass  out  by  the  same  set  of  locks  through  which  they  entered. 

ships'   MANIFESTS    AND    SHIPS'   PASSES. 

The  master  or  agent  of  everj'  vessel  must,  on  arrival  and  departure,  lodge  with  the  canal  company  a  signed 
and  complete  manifest  of  the  vessel's  inward  or  outward  lading;  and  as  respects  small  cargoes,  such  as  sets,  clay, 
ore,  etc.,  must  produce  the  bill  of  lading  and  declare  the  weight  of  the  cargo  on  arrival  or  the  cargo  will  be 
weighed  by  the  company  at  ship's  expense.  Loading,  discharging,  or  service  of  tugs  wUl  only  be  undertaken 
by  the  company  after  a  requisition  for  services  required  and  all  other  necessary  documents  have  been  lodged 
with  them,  together  with  a  cash  deposit  to  cover  the  cost  of  same. 

Every  vessel  will  be  required  to  give  up  on  leaving  the  canal  a  ship's  pass,  which  ■svUl  be  granted  on  appli- 
cation after  payment  of  all  charges  or  deposit  to  cover  same  has  been  made.  The  master  or  his  agent  should  see 
that  such  a  pass  is  obtained  in  order  to  avoid  detention  of  the  vessel,  for  which  the  company  can  not  accept 
responsibility. 

TOWAGE. 

Charges  and  conditions  for  use  of  the  canal  company's  tiigs  assisting  steamers  and  towing  sailing  vessels  ttithin  the  ship  canal  {per  tug) . 

Steamers :  £     s.     d. 

1.  From  Eastham  Locks  or  any  point  in  section  A  or  B  diiect  to  any  point  in  section  C,  or  \-ice  versa 7     10    0 

Note. — Steamers  stopping  at  Partington  to  take  in  coal  on  returning  from  Manchester  to  Eastham  Locks 
will  not  be  considered  as  breaking  the  direct  journey. 

2.  From  Eastham  Locks  direct  to  any  point  in  section  A  or  B,  or  vice  versa;  also  from  one  point  to  another  in] 

these  sections 

3.  From  Manchester  Docks  direct  to  any  point  in  section  C,  or  vice  versa;  also  from  one  point  to  another  in[ 

this  section ) 

4.  Waiting  at  Eastham  Locks,  per  tide 2      0    0 

EXCEPTIONS. 

5.  From  Manchester  Docks  direct  to  any  point  below  Mode  Wheel  Locks  and  above  Barton  Aqueduct,  or  -vdce 

versa 2     10    0 

6.  From  one  point  direct  to  another  between  Mode  Wheel  Locks  and  Barton  Aqueduct I 

7.  From  one  point  direct  to  another  in  Manchester  Docks >2      0    0 

8.  From  one  point  direct  to  another  within  the  canal  at  Ellesmere  Port,  or  at  Runcorn J 

9.  From  Eastham  Locks  to  Dolphins  within  the  canal  at  Eastham,  or  vice  versa i .       „     . 

10.  From  one  tip  to  another  at  Partington  coal  basin J 

Note. — As  regards  ser^aces  Nos.  6,  7,  8,  9,  and  10,  when  tugs  are  occupied  for  more  tlian  one  hour  an  addi- 
tional charge  of  10s.  per  hour  or  part  of  an  hour  per  tug  will  be  made.  The  ser\'ice  to  be  calculated  from 
the  time  the  tug  is  in  attendance,  as  ordered,  until  the  time  the  service  is  finished. 


4     10    0 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  415 

EXCEPTIONS — continued. 
Sailing  vessels; 

From  Eastham  Locks  direct  to  any  point  in  section  A,  B,  or  C  in  tlie  canal,  or  \'ice  versa,  or  when  proceeding  from  one  point 
direct  to  another  in  the  canal,  or  in  the  Manchester  Docks — 
If  Light,  2d.  per  net  registered  ton. 
If  loaded,  3d.  per  ton  upon  the  weight  of  the  cargo,  with  a  minimum  as  for  when  light. 

Theserates  will  operate  until  the  higher  scale  under  the  preceding  table  for  steamers  is  reached  by  the  charges 
payable  on  the  tonnage  of  the  vessel,  if  light,  or  on  the  weight  of  cargo  on  board,  if  loaded,  when  the  charges 
as  per  the  said  table  will  apply. 
Detention  of  tugs  attending  steamers  and  sailing  vessels: 

Per  hour  or  part  of  an  hour,  10s.  per  tug. 
Note. — If  tug  assistance  or  towage  services  other  than  those  named  above  are  required,  the  charges  will  be  by  special  arrange- 
ment. 

CONDITIONS   UNDER  WHICH   THE  MANCHESTER   SHIP  CANAL  CO.   SUPPLY  TUGS  FOR  ASSISTANCE   TO   STEAMERS  AND 

FOR    THE    TOWAGE    OF    SAILING    VESSELS. 

1.  The  company,  its  servants  and  agents,  are  not  to  be  responsible  or  liable  for  delay,  damage,  or  injury 
to  any  ship,  vessel,  or  craft,  or  the  persons  or  goods  on  board  thereof,  of  which  the  company  may  undertake 
the  towage,  assisting,  or  docking  in  the  River  Mersey  and  [or]  the  Manchester  Ship  Canal,  or  which  may  be 
piloted  to  or  from  any  place  in  the  River  Mersey  and  [or]  the  said  ship  canal,  or  for  any  loss  sustained  or  liability 
incurred  by  anyone  by  reason  of  such  delay,  damage,  or  injury,  or  for  any  loss  or  liabihty  incurred  in  consequence 
of  any  such  ship,  vessel,  or  craft  colUding  with  or  other^nse  damaging  any  other  vessel  or  tiling,  or  for  any 
damage,  loss,  or  habihty  of  anj^  Idnd  whatsoever  arising  from  the  towing,  docking,  assisting,  or  piloting,  what- 
ever may  be  the  cause  or  causes  of  such  delay,  damage,  injury,  loss,  or  Habihty,  or  under  whatever  circum- 
stances such  delay,  damage,  injury,  loss,  or  liabihty  may  have  happened  or  accrued,  even  though  arising  from 
or  occasioned  by  the  act,  omission,  incompetence,  negligence,  or  default,  whether  willful  or  not,  of  the  com- 
pany, its  servants  or  agents,  or  any  other  persons,  or  aiw  defect,  imperfection,  insufficiency  of  power,  or  unsea- 
worthiness in,  or  any  delay,  stoppage,  or  slowniess  of  speed  of,  any  tug  or  vessel,  her  macliinery,  equipment, 
apphances,  or  gear,  engaged  in  towing,  docking,  assisting,  or  piloting  any  sliip,  vessel,  or  craft,  even  though 
such  defect,  imperfection,  insufficiencj'  of  power,  or  unseawortliiness  be  in  existence  before  or  during  the  said 
services. 

It  is  further  agreed  that  on  the  hiring  of  the  company's  tugs  for  towage,  docking,  piloting,  or  assistance 
services,  the  master  and  crew  of  such  tugs  become  in  all  respects  the  servants  of  and  are  identified  with  the 
ship,  and  are  under  the  control  of  the  person  in  charge  of  the  ship,  whilst  the  towage,  docking,  piloting,  or  assist- 
ance services  are  being  performed. 

Further,  the  hirer  agrees  to  indemnify  the  company  against  all  losses,  damage,  and  claims  whatsoever, 
inclucUng  damage  sustained  by  the  tug  and  her  machmery,  equipment,  apphances,  and  gear,  even  though 
caused  by  the  neglect  or  default  of  the  servants  or  agents  of  the  company. 

If  a  tug  is  engaged  to  tow  a  ship,  vessel,  or  craft  to  any  place,  and,  through  stress  of  weather  or  any  other 
unavoidable  circumstances,  she  runs  short  of  coal,  or  is  separated  from  such  ship,  vessel,  or  craft,  and  the 
service  is  not  completed,  the  company  shall,  nevertheless,  be  paid  pro  rata  according  to  the  time  occupied  as 
compared  with  the  ordinary  period  of  the  intended  services. 

The  company  reserve  the  right  to  substitute  one  tug  for  another,  and  the  terms  hereof  shall  apply  to  the 
substituted  tug,  although  the  substituted  tug  may  be  o\vned  by  other  owners. 

2.  The  company's  printed  form  of  towage  requisition  must  be  signed  by  the  master  of  the  vessel,  and 
deposited  either  at  the  dock  office,  Manchester,  the  company's  office  at  Runcorn,  or  at  the  company's  Liverpool 
office,  18  Chapel  Street,  at  least  12  hours  before  the  tug  is  required,  and  not  later  than  5  p.  m. 

3.  LTpon  receipt  of  the  signed  towage  requisition  (for  copj^  of  wliich  see  next  page)  the  company  will  endeavor 
to  supply  towage  power  at  the  time  reqiuired,  but  can  not  guarantee  to  have  tugs  always  at  hberty,  and  will 
not.be  responsible  for  delay  that  may  arise  from  any  cause. 

4.  When  tugs  are  in  attendance  at  the  time  ordered,  and  the  ship  is  not  ready  to  proceed,  a  charge  will 
be  made  for  the  time  occupied  in  waiting  if  the  tugs  remain,  or  an  equivalent  charge  if  the  tugs  are  ordered 
off  to  other  employment. 

34998°— 12 28 


416  PANAMA  CANAL  TRAFFIC  AND   TOLLS. 

foksi  of  tug  requisition  and  agreement. 

To    THE   iLvNCHESTER    ShiP   CaNAL   Co. 

Station, 

p.m.     a.  m 191 

Please  supply tug for  my  vessel,   the to   be  at at p.m.     a.m. 

on  the day  of 191 cargo net  registered  tonnage draft  of  water  aft from to 

.on  the  conditions  named  herein,  and  upon  the  terms  specified  on  the  other  side  of  this  agreement. 

(For  terms  and  other  conditions,  see  pp.  414  and  415  of  schedule.) 

The  company,  its  servants  and  agents,  are  not  to  be  responsible  or  liable  for  delay,  damage,  or  injury  to 
any  ship,  vessel,  or  craft,  or  the  persons  or  goods  on  board  thereof  of  which  the  company  max  undertake  the 
towage,  assisting,  or  docking  in  the  River  Mersey  and  [or]  the  Manchester  Ship  Canal,  or  which  may  be  piloted 
to  or  from  any  place  in  the  River  Mersey  and  [or]  the  said  ship  canal,  or  for  any  loss  sustained  or  liability 
incurred  by  anyone  by  reason  of  such  delay,  damage,  or  injury  or  for  any  loss  or  liability  incurred  in  con- 
sequence of  any  such  ship,  vessel,  or  craft  colliduig  ■with,  or  otherwise  damaging  any  other  vessel  or  tiling,  or 
for  any  damage,  loss,  or  liability  of  an}^  kind  whatsoever  arising  from  the  towing,  docking,  assistmg,  or  piloting, 
whatever  may  be  the  cause  or  causes  of  such  delay,  damage,  injury,  loss,  or  liability,  or  under  whatever  circum- 
stances such  delay,  damage,  injury,  loss,  or  liability  may  have  happened  or  accrued,  even  though  arising  from 
or  occasioned  by  the  act,  omission,  incompetence,  negligence,  or  default,  whether  wdlful  or  not,  of  the  company, 
its  servants,  or  agents,  or  any  other  persons,  or  any  defect,  imperfection,  insufficiency  of  power  or  unseaworthi- 
ness in,  or  any  delay,  stoppage,  or  slowness  of  speed  of,  any  tug  or  vessel,  her  machinery,  equipment,  appli- 
ances, or  gear,  engaged  in  towing,  docking,  assisting,  or  piloting  any  ship,  vessel,  or  craft,  even  though  such 
defect,  imperfection,  insufficiency  of  power,  or  unseaworthiness  be  in  existence  before  or  during  the  said  services. 

It  is  further  agreed  that  on  the  hiring  of  the  company's  tugs  for  towage,  docking,  piloting,  or  assistance 
services,  the  master  and  crew  of  such  tugs  become  in  all  respects  the  servants  of  and  are  identified  with  the  ship 
and  are  under  the  control  of  the  person  in  charge  of  the  ship,  whilst  the  towage,  docking,  piloting,  or  assistance 
services  are  being  performed. 

Further,  the  hirer  agrees  to  indemnify  the  company  against  all  losses,  damage,  and  claims  whatsoever, 
including  damage  sustained  by  the  tug  and  her  machinery,  equipment,  appliances,  and  gear,  even  though 
caused  by  the  neglect  or  default  of  the  servants  or  agents  of  the  company. 

If  a  tug  is  engaged  to  tow  a  ship,  vessel,  or  craft  to  any  jjlace,  and  through  stress  of  weather  or  any  other 
unavoidable  circumstance  she  runs  short  of  coal,  or  is  separated  from  such  ship,  vessel,  or  craft,  and  the  service 
is  not  completed,  the  company  shall  nevertheless  be  paid  pro  rata  according  to  the  time  occupied  as  compared 
with  the  ordinary  period  of  the  intended  services. 

The  company  reserve  the  right  to  substitute  one  tug  for  another,  and  the  terms  hereof  shall  applj'  to  the 
substituted  tug,  although  the  substituted  tug  may  be  owned  by  other  owners. 

(Signature) 


Master. 

Note. — Canal  tolls  and  wharfage  are  chargeable  upon  cargo,  and  are  payable  by  the  owners  of  such  cargo  (for  particulars  see  separate 
schedule  of  merchants'  charges) ;  but  if  the  o\vncrs  of  vessels  bringing  in  or  taking  out  cargoes  ek^ct  to  pay  the  ship  canal  tolls  and  wharfage 
thereon  by  arrangement  with  the  owners  of  such  cargoes,  they  must  also,  as  respects  inward  cargoes,  pay  any  quay  porterage  that  may  be 
incurred  thereon.    As  respects  outward  cargoes,  the  shipowners  are  liable  to  pay  the  charge  payable  for  receiving  same  to  quay  or  shed. 

CANAL   TOLL   ON    PASSENGERS. 

When  carried  between  Manchester  Docks  and  Eastham,  Is.  each  single  journey;  Latchford  Locks  and  East- 
ham,  6d.  each  single  journey;  between  places  not  stated  above,  ^d.  per  mde  per  passenger.  Maximum  charge 
(single  journey).  Is.  per  passenger;  minimum  charge  (single  journe}'),  Id.  per  passenger. 


PANAJ\LA.  CAN.IL  TRAFFIC 'AND  TOLLS.  417 

UPPER    MERSEY    DUES. 

The  Upper  Mersey  commissioners  have  power  to  charge  dues  on  vessels  proceechng  to,  from,  or  through 
Ellesniere  Port,  the  Weston  Marsh  Lock,  the  Weston  Point  Docks  or  Locks,  or  the  Runcorn  Docks,  or  along 
the  River  Weaver  Na^^gation,  or  along  the  Bridgewater  Canals,  or  along  the  Shropshire  Union  Canal,  but  vessels 
loading  or  discharging  elsewhere  in  the  ship  canal  are  not  charged  \\'ith  these  dues  provided  they  enter  and  leave 
via  the  Eastham  Locks  only. 

APPROPRIATED    BERTHS. 

Appropriated  berths,  with  shed  accommodations  in  the  Manchester  Docks,  are  allocated  by  the  canal 
company  on  reasonable  terms  to  lines  running  regular  services. 

DANGEROUS    GOODS. 

Explosives  of  the  various  kinds  described  in  the  "Special  classification  of  explosives  and  other  dangerous 
goods  by  merchandise  trains"  embodied  in  the  general  railway  classification  (with  the  single  exception  of  safety 
small-arm  cartridges)  are  not  allowed  to  pass  over  the  canal,  nor  are  anj'  of  the  inflammable  liquids  giving  off 
vapor  inflammable  at  less  than  73°  F.,  set  forth  in  the  same  "Special  classification." 

Other  dangerous  articles,  l>ut  of  a  less  dangerous  character  than  those  named  above,  which  from  time  to  time 
may  be  allowed  specially  to  be  imported  or  exported  by  means  of  the  canal,  must  not  be  unloaded  on  to  the 
dock  quays,  but  must  be  discharged  or  shij)ped  direct  from  or  to  vessel,  to  or  from  barge,  road  vehicle,  or  railway 
wagon  alongside.  If  the  traffic  for  any  reason  can  not  be  discharged  or  shipped  direct  from  or  to  vessel,  the 
canal  company  will  haul  same  to  a  place  of  safety  at  the  expense  of  the  owner  of  the  goods  or  the  steamship 
owner  as  the  case  may  be,  and  at  his  risk  in  all  respects. 

In  the  case  of  inflammable  liquids  not  giving  off  vapor  inflammable  at  less  than  7.3°  F.,  shippers  or  importers 
of  the  traffic  must  before  shipment  or  unloading  lodge  at  the  dock  office  a  declaration  to  this  effect. 

OBJECTIONABLE    GOODS. 

Articles  which  may  be  deemed  objectionable  by  the  canal  company,  and  through  contact  with  which  other 
goods  are  liable  to  be  damaged,  such  as  chemicals,  charcoal  dust,  soot,  etc.,  will  not  be  permitted  to  be  placed 
inside  the  transit  sheds  except  by  special  arrangement. 

TRANSSHIPMENT    CARGO. 

Transshipment  goods  are  hauled  in  railway  wagons  (or  barged  at  canal  company's  option)  on  the  conditions 
stated  in  the  canal  company's  prmted  haulage  requisition  form  from  alongside  ship  to  other  vessels  in  any  part 
of  the  docks  at  a  cliarge  of  6d.  per  ton  (single  articles  over  5  tons  and  not  exceeding  10  tons  each  9d.  per  ton), 
minimum  charge  as  for  2  tons  per  wagon  (except  as  per  note  below),  which  does  not  include  responsibility 
for  loading,  stowing,  checking,  counting,  custody,  or  condition  of  goods;  but  the  company  will  accept  the  usual 
liability  of  carriers  either  by  railway  or  barge  (at  the  company's  option)  at  a  rate  of  Is.  6d.  per  ton  (no  smgle 
article  to  exceed  10  tons  in  weight)  with  a  minimum  of  2s.  6d.  per  wagon  (except  as  per  note  below),  but  both 
rates  are  exclusive  of  canal  toll  or  charges  for  any  labor  that  may  be  incurreil  in  the  handling  of  the  goods.  The 
company  do  not  guarantee  to  discharge  goods  direct  ex  ship  to  railway  wagon  or  barge,  but  will  endeavor  to 
do  so  with  the  view  to  avoid  quay  porterage. 

Note. — The  charge  for  haulage  or  conveyance  of  articles  of  unusual  length,  bulk,  or  weight,  or  of  exceptional  bulk  in  proportion  to 
weight,  will  be  by  special  arrangement. 

A  requisition  on  the  canal  company's  printed  form  for  haulage  must  be  filled  up  and  lodged  at  the  dock 
traffic  offices,  Traft'ord  Road,  Salfonl,  previous  to  the  service  being  requhed,  and  the  rate  to  be  charged  inserted 
to  indicate  whether  the  goods  are  to  be  hauled  at  the  owner's  risk  or  conveyed  by  the  company  as  carriers. 

CARGO    FOR   OTHER    PORTS    BROUGHT    BY    VESSELS    INTO    THE    CANAL. 

Cargo,  as  above,  remamhig  m  the  vessel  while  she  discharges  or  loads  other  cargo  in  the  canal  will  not  be 
liable  to  pay  canal  toll. 


418  PANAilA  CAN.^L  TRAFFIC  AND  TOLLS. 

CUSTODY  OF  AXD  REGULATIONS   WITH  REGARD  TO   GOODS   WHILE  LYING  ON  THE  DOCK  QUAYS  OR  IN  THE  TRANSIT 

SHEDS. 

All  goods  laid  down  on  or  passing  over  the  quays  of  the  docks  of  the  ship  canal  company,  or  deposited 
in  the  quay  sheds,  are  at  the  owner's  sole  risk  m  every  respect;  the  company  have  not  custody  of  such  goods, 
and  will  not  be  responsible  for  leakage,  loss  of  weight  or  measure,  or  for  damage  by  fire,  theft,  strikes,  combina- 
tions of  workmen,  weather,  deterioration  from  natural  causes,  acts  of  God,  the  King's  enemies,  or  otherwise 
howsoever. 

Goods  are  not  in  the  custody  of  the  canal  company  until  taken  possession  of  by  them  as  warehousemen, 
wharfingers,  or  railway  carriers. 

The  canal  company's  police  patrol  the  Manchester  docks,  and  their  police  superintendent  will,  upon  receipt 
of  a  requisition  to  do  so,  place  a  special  watch  upon  merchandise  lying  in  the  transit  sheds  or  on  the  quays,  for 
which  service  a  charge  of  5s.  per  day  and  5s.  per  night  is  made,  with  a  minimum  charge  of  5s.  The  service  of 
watching  merchandise  will,  however,  only  be  undertaken  on  the  express  understanding  that  the  company  will  not 
be  responsible  for,  and  that  no  liabiiltv  shall  attach  to  them  in  respect  of,  the  safe  custody  of  such  merchandise. 

For  watching  on  board  oil  tank  steamers  the  charge  is  8d.  per  hour  per  man,  with  a  minimum  charge  of  5s. 
for  each  man  employed. 

FIRES,    LIGHTS,    AND    SMOKING. 

Fires  and  lights  are  only  to  be  used  under  certain  conditions,  and  smoking  in  the  sheds  or  warehouses,  etc., 
and  on  the  docks  or  wharves,  or  on  the  decks  of  vessels  lying  in  the  docks,  is  strictly  prohibited. 

For  further  particulars  see  the  canal  company's  regulations  and  by-laws,  which  can  be  had  on  appUcation, 
if  not  already  given  to  the  master  of  the  vessel  on  entering  the  canal. 

REFUSE,  ETC. 

Refuse  such  as  cinders,  boiler  scrapings,  hold  sweepings,  etc.,  must  not  be  landed  on  the  quays  or  wharves 
from  ships  (except  by  special  permission  of  the  dock  traffic  superintendent),  but  must  be  removed  direct  from 
the  company's  premises  at  the  ship's  expense.  Railway  wagons,  mto  which  refuse  may  be  deposited,  can  be 
obtained  from  the  canal  company  at  a  charge  of  5s.  per  wagon,  which  mcludes  haulage  to  tipping  ground  and 
tipping. 

PILOTAGE    CHARGES    AND    ARRANGEMENTS. 

The  Manchester  Ship  Canal  Co.,  being  the  pilotage  authority  for  the  ship  canal,  under  their  by-laws  are 
empowered  to  collect  all  charges  for  pilotage  on  the  canal.  Pilotage  outside  the  canal  is  not  payable  to  the 
canal  company. 

Pilotage  within  the  canal  is  not  compulsory,  but  when  a  pilot  is  employed  he  must  be  the  holder  of  a  pilotage 
license  issued  by  the  canal  company,  and  must  not,  without  the  company's  consent,  claim  for  his  services  any 
greater  or  lesser  sum  than  is  provided  for  in  the  following  table. 

For  vessels  entering  or  leaving  the  canal  loaded  or  in  ballast  the  following  initial  fees  according  to  net 
registered  tonnage: 

£.  s.  i. 

Up  to  300  tons 0  10  0 

Over  300  tons,  and  up  to  600  tons 1  0  0 

Over  600  tons,  and  up  to  1,200  tons 1  10  0 

All  over  1,200  tons 2  0  0 

And  in  addition  thereto  a  sum  at  the  rate  of  Is.  per  mile,  or  portion  of  a  mile,  for  the  distance  navigated 
when  loaded,  and  6d.  per  mile,  or  portion  of  a  mUe,  when  in  ballast. 

For  vessels  piloted  from  one  point  of  the  canal  to  another,  i.  e.,  when  not  entering  or  leaving  the  canal,  one- 
half  of  the  above-named  initial  fee  is  charged,  and  the  full  mileage  rate  of  Is.  per  mile  whether  loaded  or  in 
ballast. 

Extra  services. — When  vessels  are  detained  on  their  journey  up  or  down  the  canal  for  the  purpose  of  bunker- 
ing or  otherwise  for  the  convenience  of  the  owners,  and  proceed  on  their  journej^  withm  4  hours,  5s.  is  charged; 
but  when  detained  over  that  time,  and  not  exceeding  24  hours,  the  charge  will  be  10s.  for  detention,  provided 
this  docs  not  exceed  one-half  of  the  full  initial  fee;  but  should  it  do  so  only  half  the  full  initial  foe  wQl  be  charged. 


PANAilA  CANAL  TRAFFIC   AND   TOLLS-  419 

If  a  vessel  is  detained  beyond  24  hours  at  any  one  point  of  call,  she  will  be  treated  as  moving  from  point  to 
point  in  the  canal,  and  charged  accordingly. 

When  for  the  convenience  of  owners  vessels  are  moved  at  Eastham  from  the  locks  to  the  sluiceway  or 
dolphins  within  the  canal,  or  vice,versa,  or  between  the  sluiceway"  and  dolphins,  10s.  is  charged  for  each  service. 

For  any  special  services  undefined  herein  the  charge  shall  be  as  agreed  between  the  pilot  and  the  ship's 
master  at  the  time  rendered. 

The  master's  signature  on  the  pilot's  certificate  of  services  rendered  is  accepted  by  the  canal  company  as 
binding  upon  the  master,  owner,  or  ship's  agent  to  pay  the  charges  named  thereon. 

REGULATIONS    AND    RATES    FOR    LOADING    AND    DISCHARGING    VESSELS    AT    THE    MANCHESTER    DOCKS,    PAYABLE    BY 

SHIPOWNERS. 

Section  146  of  the  canal  company's  188.5  act  provides  that  the  company  shall  have  the  exclusive  right 
to  supply  all  the  labor  recjuired  for  loading  and  discharging  vessels  and  the  handling  of  the  merchancUse  within 
the  canal  or  docks,  and  that  the  company  mav  charge  for  such  services  an  amount  equal  to  the  actual  cost  of 
labor,  a  proportionate  cost  of  the  wages  of  foremen,  of  office  expenses  and  material,  and  in  addition  a  sum  of 
10  per  cent  on  such  amounts,  and  also  a  premium  to  cover  liabilities  for  accidents  and  losses,  which,  until  fur- 
ther notice,  ^^'iil  be  after  the  rate  of  5  percent.  In  order,  however,  that  shipowners  may  have  the  advantage  of 
inclusive  fixed  tonnage  rates,  the  rates  in  the  tables  on  pages  421,  422,  and  42.3  are  quoted  by  the  company. 

Wlien  the  ser^-ices  of  loading,  discharging,  etc.,  are  requisitioned  at  such  tonnage  rates  the  canal  company, 
although  acting  as  servants  of  the  shipowners,  will,  in  respect  of  their  own  workmen,  accept  the  responsibility 
attaching  to  them  as  their  employers  under  the  workmen's  compensation  act,  1906,  or  any  other  act,  except  in 
the  case  of  accidents  for  which  the  shipowiiers  themselves  may  be  liable  at  common  law. 

Shipowners  (except  where  the  crew  discharge,  see  p.  425)  may  elect  to  have  the  loading  and  dischargino' 
performed  in  accordance  with  section  146  as  named  above,  provided  the  work  be  carried  out  in  accordance 
with  the  canal  company's  regulations.  It  is  optional  for  the  shipowner  to  requisition  from  the  company  the 
ser^nces  of  men  at  cost  plus  10  per  cent,  or  cost  plus  15  per  cent.  When  men  are  requisitioned  at  cost  plus 
10  per  cent  they  will  not  be  under  the  supervision  or  control  of  the  company's  foremen,  and  therefore  are  only 
supplied  at  cost  plus  10  per  cent  subject  to  the  hirer  agreeing  to  indemnify  the  company  from  the  consequences 
of  any  accident  that  may  occur  to  anj^  of  the  men  supplied  and  to  reimburse  the  company  any  sum  they  may 
have  to  pay  in  respect  of  anj^  such  accident,  as  compensation  under  the  workmen's  compensation  act,  1906,  or 
an}'  other  act. 

If  workmen  are  requisitioned  at  cost  plus  15  per  cent,  the  work  will  be  performed  under  the  supervision 
or  control  of  foremen  belonging  to  the  canal  company,  and  in  such  case  the  company,  in  respect  of  such  men 
and  foremen,  accept  responsibilitj^  as  their  employers  under  the  workmen's  compensation  act,  1906,  or  any 
other  act,  except  in  the  case  of  accidents  for  which  the  shipowners  themselves  may  be  liable  at  common  law. 

The  canal  company  only  undertakes  the  work  of  loading,  tUscharging,  etc.,  or  the  supply  of  workmen 
on  the  express  condition  that  they  will  not  be  responsible  for,  and  no  liability  shall  attach  to,  the  company 
in  consequence  of  any  delay  in  loading  and  unloading  of  vessels,  or  for  improper  stowage  of  the  cargo  in  vessel's 
hold,  or  for  the  safe  custodj"  of  merchandise,  or  for  the  consequences  of  strikes,  labor  stoppage  or  disputes, 
or  lockouts  of  laborers  or  other  workmen  employed  by  the  company,  or  for  any  person  acting  as  agent  or  con- 
tractor for  the  company,  or  for  leakage,  loss  of  weight  or  measure,  or  for  damage  by  theft,  fire,  strikes,  com- 
binations of  workmen,  weather,  deterioration  from  natural  causes,  acts  of  God,  the  King's  enemies,  or  other- 
wise howsoever.  Work  will  only  be  commenced  after  a  requisition  for  services  recjuired,  together  with  cash 
deposit  to  cover  same,  have  been  lodged  at  the  dock  office. 

MINIMUM    PERIOD    OF    EMPLOITVIENT. 

Men  booked  on  between  (a)  6  a.  m.  and  noon,  (b)  1  p.  m.  and  6  p.  m.,  and  (c)  at  7  p.  m.,  or  during  the 
night,  have  to  be  paid  for  not  less  than  four  hours'  work. 

When  the  canal  companj-  handle  cargo  at  tomiage,  etc.,  rates,  and  are  requested  to  work  in  such  a  manner 
as  to  cause  men  to  be  employed  for  less  periods  than  four  hours  between  the  times  named  above,  the  actual 
cost  of  wages  paid  to  the  men  plus  12J  per  cent  from  the  time  they  finish  work  until  the  expiration  of  the  period 
for  which  the  minimum  of  wages  has  to  be  paid  will  be  payable  in  addition  to  the  tonnage,  etc.,  rates. 


420 


PANAilA  CANAL   TRAFFIC   AND   TOLLS. 


Wlion  men  are  ordered  out  at  night,  and  it  is  subsequently  found  tliey  are  not  required  to  work,  a  charge 
of  Is.  6d.  per  man  pkis  12J  per  cent  will  be  payable. 

When  men  ordered  for  work  are  kept  waiting  the  actual  wages  paid  to  the  men  plus  12i  per  cent  for  waiting 
will  be  payable. 

(See  also  regulations  re  cranes.) 

Classification  of  traffic,  for  purposes  of  loading  and  discharging  only. 


Articles. 


Acetate  of  lime 

Alum 

Aluminoferric  in  slabs  (as  bulk) . 

Ashes 

Asphaltum 

Asphalt  blocks  (package  rate). . . 
Ballast  (for  loading,  see  p.  424). . 

Barytes 

Bauxite 

Block  tin 

Bone  ash 

Bones -* 

Borax 


Bran 

Bricks  (Arc  and  common  square)  as  bulk. 

Bricks  (glazed)  as  bulk 

Brimstone  or  sulphur 

Cement  (in  bags) 

Chalk :.. 

Charcoal 

Chicory 

China  stone 

China  clay 

Clay,  wet 

Coal  (see  pp.  427-429) 

Coke 


Copperas 

Copper  ingots  (package  rate) 

Copper  wire  and  rods 

Cotton  (in  iron-bound  pressed  bales) 

Corkwood  (in  bundles) 

Currants  and  raisins  (in  half  cases  and  cases) . . 
Currants,  sultanas,  and  raisins  (in  small  boxes) 

Dyewood  (see  p.  422) 

Emery  stone 

Esparto  grass  (in  bales) 

Extract  of  dyewood 

Farina 

Fiber  (in  bales) 

Flints 

Flour 

Frozen  meal  (as  bulk) 


Packages  over  1  hundredweight . . . 
Packages  under  1  hundredweight. 

Gas  purifying  refuse 

Glucose  (in  casks  and  bags) 

Granite  chippings 

Granite  blocks 

Grease  (in  casks) 

Grain  (see  p.  423) 

Gravel 

Guano 

Gypsum 

Hay  and  straw  (press-packed) 

Hay  (unpressed  bales) 

Hemp  (press-packed) 

Hides  or  kips  (in  bundles) 

Horns  and  hoofs 

Iron,  pig  (in  part  cargoes) 

Iron,  pig  (in  full  cargoes,  see  p.  423) 

Iron  and  steel  billets  (coastwise) 

Iron  and  steel  (package  rate): 

Wire  (in  coils) 

Rails 

Bars  and  rods 

Fishplates 

Heavy  scrap 

G  irders 

Billets  (foreign) 

Iron  sheets  and  plates  (package  rate) 

Iron  pipes  (package  rate) 

Lead  (pig  or  sheet) 

Locust  beans 

Macadam 

Marble  chippings 

Marble  (handled  at  owner's  risk  only) 

Nitrate  of  soda 

Oakum  (press-packed) 

Ocher 

oil  (olive  and  palm) 

Oil  (in  casks,  not  otherivise  specified) 


Oil  cake  and  linseed  cake. 
Ores: 


Copper 

Iron ., 

Manganese 

Pyrites - 

Paper  (in  packages) 

Patent  fuel 

Phosphate  rock 

Pipe  clay 

Pitch  (see  p.  424) 

Potatoes  (old) 

Potatoes  (new) 

Pyrites  (see  Ores) 

Rags  (in  press-packed  bales) 

Resin 

Rice 

Sandstone  (rough  lump) 

Sand 

Salt  cake 

Salt  (manufactured  lump) 

Salt  (see  p.  424) 

Seeds  (not  otherwise  specified) 

Shale  (package  rate) 

Shumac 

Silk  waste 

Slates  (see  special  schedule) 

Soda 

Spelter  (package  rate) 

Spirits  and  wines  (in  cases  and  casks) . 

Starch  (in  bo.xes) 

Starch  (in  bags) 

Stone  sets 

Stone  flags 

Sugar  (in  bags  and  casks) 

Sugar  (in  boxes) 

Sugar  (in  loaves) 

Sulphate  of  ammonia 

Sulphur 

Tar  (in  casks) 

Tea  (in  boxes) 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Classification  of  traffic,  for  purposes  of  loading  and  discharging  only — Continued. 


421 


Articles. 


Tin  (iu  bo.xes) 

Tinplate  bars  (coastwise) 
Tinplate  bars  (foreign) . . 
Tobacco  (in  casks) 


Articles. 


Tobacco  (in  cases) 

Turpentine 

Waste  cotton  (in  impressed  bales) 
Wliiting 


Wood  pulp 

Wool  (press  packed). 


Class  6. — Mixed  general  cargo,  including  machinery.  Unpacked  or  insecurely  protected  machinery  and  iron  castings  are  only 
handled  at  class  6  rates  when  at  owner's  risk.  At  canal  company's  risk  50  per  cent  extra  will  be  charged.  Unless  otherwise  instructed, 
they  will  be  handled  and  charged  for  at  owner's  risk. 

Class  7. — For  traffic  not  otherwise  specified. 

The  class  rate  will  apply  to  any  one  description  of  article  in  classes  1  and  2  when  forming  not  less  than  one- 
half  an  entire  cargo  chscharged;  also  to  any  article  in  class  3  when  the  parcel  cUscharged  weighs  not  less  than  100 
tons. 

If  any  one  description  of  article  in  classes  1  and  2  is  less  than  half  the  entire  cargo  discharged,  but  100 
tons  and  upward,  class  3  package  rate  will  apply. 

Articles  in  class  1,  2,  or  3  when  in  lots  weighing  less  than  100  tons  will  be  charged  at  the  mixed  general 
cargo  rate. 

The  services  covered  by  the  undermentioned  rates  are: 

Discharging  goods  in  full  cargoes  (no  one  weight  exceeding  30  hundredweight)  direct  to  quay,  stage  alongside 
shed,  railway  wagon,  road  vehicle  (see  clause  below  re  road  vehicles),  or  barge  alongside  when  practicable, 
including  use  of  cranes  when  available,  but  steamers  must  provide  derricks,  winches,  winch  gear,  and  drivers 
if  and  when  required.     (See  p.  424  for  extra  services,  etc.) 

Loading  goods  in  full  cargoes  (no  one  weight  exceeding  30  hundredweight)  direct  from  quay,  stage  along- 
side shed,  railway  wagon,  road  vehicle  (see  clause  below  re  road  vehicles),  or  barge  alongside  when  practicable, 
and  delivering  in  the  vessel's  hold,  including  use  of  cranes  when  available,  but  steamers  must  provide  derricks, 
winches,  wmch  gear,  and  drivers  if  and  when  required.     (See  p.  424  for  extra  services,  etc.) 

Stowing  cargo. — Goods  will  be  stowed  to  the  instructions  of  the  ship's  ofhcers,  and  the  canal  company  will 
not  be  responsible  for  damage  of  any  description  to  goods,  whether  from  improper  stowage  or  otherwise,  unless 
the  attention  of  the  company's  officials  is  immediately  called  to  such  damage  or  improper  stowage  and  a  written 
complaint  is  at  once  given  to  the  dock  traffic  superintendent. 

Bates  for  loading  and  discharging  in  ordinary  worhing  hours. 
[For  overtime  see  p.  424.] 

.Vt  per  ton  actual  gross 
weight  o(  2,240  pounds. 


Class  No.  1  in  bulk 

Class  No.  2  in  bulk 

{in  packages 
in  bulk 

Iin  packages 
■ 
in  bulk 

{in  packages ' 
in  bulk 

Class  No.  G.  mixed  general  cargo 

Class  No.  7,  traffic  not  otherwise  specified 

I  See  also  minimum  period  of  employment  clause,  p.  419.  2  By  arrangement. 


422  PANMIA  CANAL  TRAFFIC   AND   TOLLS. 

Lifts  over  30  hundredweight  and  under  5  tons,  6d.  per  ton  extra;  lifts  over  5  tons  and  under  7  tons,  Is.  per 
ton  extra  when  practicable  to  cUscharge  or  load  by  portable  steam  cranes.  If  the  30-ton  crane  is  used,  the 
rates  chargeable  for  that  crane  will  apply.     (See  pp.  426-427.) 

The  charge  for  receiving  (exclusive  of  weighing)  from  road  vehicles  and  railway  wagons  and  stowing  back 
on  quay  or  in  shed  mixed  general  goods  (lifts  not  exceeding  30  hundredweight  each)  is  6d.  per  ton.  Lifts 
over  30  hundredweight  and  under  7  tons,  when  practicable  to  discharge  by  portable  steam  crane,  3d.  per  ton 
extra.     Articles  to  be  lifted  exceeding  1  ton  per  lift  must  have  the  exact  weight  marked  thereon. 

Unpacked  or  insecurely  protected  machinery  and  iron  castings  are  only  handled  at  the  ordinary  "receiving 
to  platform  or  quay"  rates  at  owner's  risk;  at  canal  company's  risk,  50  per  cent  extra  will  be  charged.  Unless 
other\vise  instructed,  they  will  be  handled  and  charged  for  at  owner's  risk. 

In  order  to  avoid  delay,  sliipowners  are  requested  to  give  notice  in  wTiting  to  the  dock  traffic  superin- 
tendent prior  to  the  arrival  of  road  veliicles  or  railway  wagons  containing  goods  requiring  the  use  of  cranes  for 
heavy  lifts. 

Traffic  is  only  discharged  cUrect  to  road  veliicles  from  ship  or  received  from  road  veliicles  into  slup  direct, 
when  the  canal  company  consider  the  work  of  the  sliip  will  not  thereby  be  delayed,  and  subject  to  the  persons 
in  charge  of  the  veliicles  shnging  or  unslinging  and  stowing  or  unstowing  the  goods  in  their  vehicles  at  their 
own  risk,  and  on  condition  that  if  the  company  assist  in  doing  such  work  liability  for  any  accident  arising 
therefrom  to  workmen,  horses,  lurries,  or  other  veliicles,  or  damage  to  the  goods,  shall  not  attach  to  the  company. 

Traffic  is  only  loaded  to  or  discharged  from  barges  on  the  understanding  that  the  bargemen  assist  in  shnging 
or  unslinging  and  stowing  or  unstowing  the  goods  in  the  barges  at  their  own  risk,  and  on  condition  that  if  the 
canal  company  assist  in  doing  such  work  liability  for  any  accident  arising  therefrom  to  workmen,  barges,  or 
damage  to  the  goods,  shall  not  attach  to  the  company. 

WOOD    GOODS. 

Discharging  full  cargoes  over  side  or  through  bow  ports  on  to  quay  or  barge  alongside  when  practicable, 
including  use  of  cranes  when  available;  but  steamers  must  provide  derricks,  wmches,  winch  gear,  and  drivers 
if  and  when  required.     (See  p.  424  for  extra  services.) 

Spruce,  fir,  and  hemlock:  s.  d. 

Deals  and  battens  (2i  by  7  inches  and  over  9  feet  up\  at  per  St.  Petersburg  standard '3  0 

Deal  ends  (8  feet  and  under),  at  per  St.  Petersburg  standard '3  6 

Scantlings  and  scantling  ends  (3  by  6  inches  and  under),  at  per  St.  Petersburg  standard. . .  . ; 4  0 

Boards  and  board  ends,  at  per  St.  Petersbiu^g  standard 4  0 

Note. — 16  per  cent  is  allowed  off  the  nominal  measure  of  boards  planed  on  both  sides;  8  per  cent  for  boards 
planed  on  one  side. 

Slating  laths,  palings,  pickets,  spoolwork,  fir  squares,  and  box  boards  or  shocks,  in  bundles,  at  per  St.  Petersburg  standard .    4  0 
Pitch  pine,  birch,  ash,  oak,  elm,  mahogany,  cedar,  and  other  hard  or  furniture  woods,  in  planks,  deals,  boards,  and 

scantlings,  at  per  St.  Petersburg  standard '. 4  6 

Sleepers  or  sleeper  blocks,  at  per  St.  Petersburg  standard 3  0 

-    Sleepers  or  sleeper  blocks,  creosoted,  at  per  St.  Petersburg  standard 3  6 

Fir  staves,  loose,  at  per  St.  Petersbiu-g  standard 7  6 

Fir  staves,  in  bundles,  at  per  St.  Petersburg  standard 5  0 

Memel  oak  staves,   at  per  reduced  mille 28  0 

Pulp  wood,  at  per  fathom  of  216  cubic  feet  (framed) 3  3 

Firewood  and  dunnage  wood,  at  per  fathom  of  216  cubic  feet  (framed) 5  0 

Lath  wood,  at  per  fathom  of  216  cubic  feet  (framed) 4  6 

Plaster  laths  in  bundles  (containing  not  more  than  400  lineal  feet  per  bundle),  at  per  100  bundles 2  0 

Dyewoods  (except  logwood  roots),  boxwood,  lignum  \itse,  and  ebony,  at  per  ton,  actual  weight 1  0 

Logwood  roots,  at  per  ton,  actual  weight - 1  3 

Mining  timber,  poles,  and  rickers,  at  per  load  of  50  cubic  feet 1  3 

Pit  props,  at  per  load  (according  to  scale) 1  3 

Square  or  waney  logs  and  large  poles: 

Ash,  oak,  mahogany,  teak,  karri,  jarrah,  blackbutt,  and  greenheart,  at  per  load  of  40  cubic  feet 1  3 

Pitch  pine,  Quebec  pine,  Oregon  pine,  fu,  elm,  birch,  aspen,  or  poplar,  at  per  load  of  50  cubic  feet 1  0 

Logs  or  poles  weighing  each  more  than  3  tons  or  loads,  50  per  cent  extra  to  above  rates. 

1 6d.  per  standard  extra  in  sections  A  and  B. 


PANMIA  Cv^AL  TRAFFIC   AND   TOLLS. 


423 


PIT    WOOD. 

Milling  timber  can  be  landed  at  Ellesmere  Port,  Runcorn,  the  Haydock  Wharf,  Acton  Grange,  Warrington 
Wliarf,  Ecclcs  Wharves,  or  Manchester. 

GRAIN. 

Grain  in  vessels  arriving  at  the  Manchester  docks  will  be  discharged  direct  mto  the  canal  company's  grain 
elevator,  except  (a)  East  Indian  wheat,  which  the  canal  company  only  discharges  into  the  quay  sheds ;  and 
(&)  when  the  canal  company  prescribes  that  it  shall  be  otherwise  dealt  with. 

The  charges  for  discharging,  including  use  of  portable  elevators  or  cranes  when  available,  ships  providmg 
use  of  derricks,  winches,  winch  gear,  and  drivers  if  and  when  required,  are  as  follows: 


Wheat, 
maize,  etc. 
(per  ton). 


Grain  imported  in  bulk: 

Wlien  discliarged  direct  from  ship's  liold  into  marine  tower  of  elevator 

When  discharged  hy  portable  elevators,  cranes,  or  ship's  gear  direct  over  side  into  barges  or  on  to  stage  alongside  quay  shed 

Grain  imported  in  bags: 

Full  cargoes,  when  discharged  by  ship's  steam  winches  only,  direct  over  side  into  barges 

Full  cargoes,  when  discharged  entirely  by  canal  company's  cranes  or  partially  by  company's  cranes  and  partially  by ship'ssteam  winches 

Full  or  part  cargoes  (the  other  portion  being  in  bulk  and  [or]  other  merchandise)  when  discharged  by  cranes  or  by  ship's  steam  winches 

Full  or  part  cargoes  shipped  into  bulk  and  discharged  direct  from  ship's  hold  into  marine  tower  of  elevator,  or  by  portable  elevator  over  side. , 

Note. — For  discharging  full  cargoes  of  grain  in  bulk  or  in  bags  direct  overside  vessel  at  Runcorn  Lay-bye,  in  section  A  of  the  canal,  to 
barges  for  lighterage  to  the  Manchester  docks '...." 

EXTRA  SERVICES. 

When  more  than  one  parcel  of  grain  in  bulk  is  stowed  in  one  hatch,  separated  by  mats,  etc.,  and  requiring  special  care  in  separating  and  extra 
trimming,  the  additional  charges  for  discharging  the  parcels  so  stowed  will  be 

For  clearing  dunnage  and  shifting  boards,  discharging  fore  peaks,  etc 

Repairing  bags,  riddling,  and  cleaning  loose 

Separating  damaged  cargo  and  discharging  same  over  side  to  barge  and  [or]  incasing  grain  in  damaged  bags  into  new  bags  to  be  landed 


1* 

Will  be  charged  for  at 
cost  plus  12}  percent, 
which  includes  risk 
under  the  workmen's 
compensation  act, 
1906,  or  any  other  act, 
except  in  the  case  of 
accidents  for  which 
the  shipowners  them- 
selves may  be  liable 
at  common  law. 


When  a  barge  is  required  to  lay  alongside  ship  to  receive  damaged  grain,  the  canal  company  will  supply 
such  barge  at  a  charge  varying  from  £1  Is.  to  £4  4s.  per  day  or  part  of  a  day,  accordmg  to  size,  for  the  use 
of  the  barge  only. 

Wet  or  badly  damaged  grain  can  not  be  taken  into  the  elevator  in  quantities  over  5  tons  until  a  special 
requisition  has  been  lodged  with  the  company,  either  by  shipowner  or  importer,  authorizmg  the  immediate 
treatment  of  the  damaged  gram  through  the  dryer,  as  the  storage  bins  can  not  be  used  to  store  damaged  grain 

GRAIN    SHIPPED   OUTWARD   FROM   THE   MANCHESTER   DOCKS   BY   COASTING    STEAMERS. 

The  followmg  charges  will  be  made  for  the  services  of  trimming  or  stowing  the  grain  on  board  coasting 
steamer,  viz: 

Grain  in  bulk: 

Ex  inward  steamer  direct  over  side  to  coasting  vessel,  3d.  per  ton. 

Ex  quay  or  grain  elevator  to  coasting  vessel,  3d.  per  ton. 
Grain  in  bags: 

Ex  inward  steamer  direct  over  side  to  coasting  vessel,  6d.  per  ton. 

Ex  quay  or  grain  elevator  to  coasting  vessel,  7d.  per  ton. 

PIG    IRON,    EX-COASTWISE    VESSELS. 

Discharging,  full  cargoes,  6d.  per  ton. 


424  PANAMA  CANAL  TRAFFIC   AND   TOLLS. 


Loading  (common  fishery,  small  rock,  or  bag) ,  and  trimming  or  stowing  in  ship's  hold : 

In  100-ton  lots  and  upwards,  7d.  per  ton. 
In  lesser  quantities,  lOd.  per  ton. 

Bearing  off  to  be  undertaken  by  salt  siippliei"s'  bargemen. 

PITCH    SHIPMENTS. 

Loading  and  trimmmg  pitch  in  full  cargoes: 

From  road  vehicles,  railway  wagons,  or  barges: 
November  to  April,  lOd.  per  ton. 
May  to  October,  Is.  per  ton.        ' 

An  extra  charge  of  3d.  per  ton  will  be  made  to  shipo-\\-ner  for  loosening  pitch  which  may  have  liecome  set  in 
barge's  hold  or  on  the  quay. 

When  pitch  arrives  at  the  Manchester  Docks  per  railway  for  shipment,  instiiictions  for  disposal  should  be 
handed  to  the  canal  company  on  or  before  the  arrival  of  the  traffic,  otherwise  m  order  to  avoid  incurrmg 
demurrage  on  the  railway  wagons  it  may  be  cast  out  of  the  wagons  on  to  the  quay,  the  charge  for  such  service 
being  cost,  plus  12^  per  cent. 

Should  the  company  be  unable  to  unload  the  wagons  at  the  vessel's  loading  berth  the  additional  cost  of 
subsequently  removing  the  pitch  from  where  deposited  to  the  vessel's  side  will  also  be  charged. 


Ballast  is  delivered  alongside  ship  at  crane  berth  in  the  Manchester  Docks,  and  also  at  Euncorn  Lay-bye 
and  Eastham,  and  put  on  board  at  2s.  per  ton,  exclusive  of  trimmuig. 

At  least  48  hours'  notice  should  be  given  in  WTitiug  to  the  canal  company  for  ballast  requu-ed  to  be  delivered 
alongside  ship. 

OVERTIME. 

Overtime  between  the  hours  of  6  p.  m.  and  8  a.  m.,  and  on  Saturdays  after  5  p.  m.  and  up  to  10  p.  m.,  is 
charged  for  at  i^d.  per  hour  per  man  employed  in  addition  to  the  fixed  tonnage,  etc.,  rates,  ^vith  the  exception 
of  timber  (in  full  cargoes),  when  the  rate  of  5d.  per  hour  per  man  will  be  charged. 

On  Saturdays  after  10  p.  m.,  Sundays,  Christmas  Day,  Good  Friday,  bank  and  special  holidays,  9d.  per 
hour  per  man  is  charged  in  addition  to  the  fixed  tonnage,  etc.,  rates,  in  all  cases  except  on  timber  (m  full  cargoes), 
when  the  rate  of  lOd.  per  hour  per  man  ^vill  be  charged. 

"Wlien  men  are  requisitioned  to  work  duruig  their  meal  hours  the  overtime  rate  will  be  charged  for  such 
hours  and  any  longer  period  the  men  may  continue  to  work  wathout  a  break. 

Requisitions  for  overtime  must  be  lodged  before  3  p.  m.  Mondays  and  Fridays,  and  on  Saturdays  before 
12  noon. 

EXTRA    SERVICES. 

All  services  not  specified,  and  extra  labor  in  case  of  damaged  cargoes,  repairing,  and  coopermg  to  make  goods 
merchantable,  getting  or  breaking  out  goods  in  an  adhesive  state,  and  loading  or  dischargmg  cargo  from  peaks, 
bunkers,  cabins,  tanks,  lazarcttcs,  sorting  cargo,  etc.,  is  charged  for  at  actual  cost  of  labor  and  superintendence 
plus  12i  per  cent,  which  will  also  cover  liability  for  accident  under  the  workmen's  compensation  act,  1906,  or 
any  other  act  except  in  the  case  of  accidents  for  which  the  shipowners  themselves  may  be  liable  at  conmion  law. 

CJiecMng  cargo. — The  rates  charged  for  loading  and  dischargmg  do  not  include  the  service  of  sorting  or 
checking  the  cargo  loaded  or  discharged,  the  responsibOity  for  which  rests  entirely  with  the  shipowner. 

When  import  goods  (timber  excepted)  are  landed  to  cjua}',  and  the  canal  company  make  a  charge  for  quay 
porterage,  the  goods  are  counted  by  the  company  at  time  of  delivery  from  the  quay,  the  service  being  covered 
by  the  quay  porterage  charge. 

When  goods  are  delivered  direct  ex-ship  to  railway  companies'  wagons  for  forwarding  at  the  canal  com- 
pany's through  radway  rates,  the  goods  so  delivered  are  checked  by  the  company,  but  the  company  take  no 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  425 

responsibility  whatsoever,  with  respect  to  goods  discharged  overside  ship  direct  to  barge,  road  vehicle,  or  to 
ship  canal  railway  wagons  when  for  haulage  over  the  dock  estate  or  to  or  from  and  over  the  Trafford  Park  estate, 
except  for  the  due  performance  of  any  service  they  may  undertake  by  arrangement  m  connection  therewith. 

DISCHARGING    AND    LOADING    BY    SHIp's    CREW. 

When  arrangements  are  made  with  the  canal  company  to  allow  the  cargo  to  be  discharged  or  loaded  by 
the  ship's  crew,  the  crew  shall  work  m  accordance  -with  the  companj^'s  regidations,  and  shall  land  the  cargo 
upon  the  quay  clear  of  and  beyond  the  railway  Imes,  or  upon  road  vehicle,  railway  wagon,  or  barge  alongside 
ship,  as  may  be  required;  and  m  the  case  of  wood  goods  the  crew  shall,  in  addition,  properly  pile  such  cargo 
upon  the  quay,  clear  of  and  beyond  the  railway  lines,  and  at  such  places  and  m  such  a  manner  as  may  be  requu-ed 
by  the  companj^. 

Vessels  are  not  allowed  to  occupy  crane  berths  when  the  loading  or  dischargmg  services  are  allowed  to  be 
done  by  the  ship's  crew,  unless  the  canal  company's  cranes  are  hu-ed  and  overtime  is  worked  if  requhed  by  the 
company. 

The  master  or  agent  of  any  vessel  may  requisition  from  the  canal  company  the  services  of  men  at  cost, 
plus  10  per  cent  (see  p.  419),  to  assist  his  crew  m  discharging  or  loadmg  his  vessel.  Wlien  men  are  requisitioned 
at  cost,  plus  10  per  cent,  they  will  not  be  under  the  supervision  or  control  of  the  company's  foremen,  and  there- 
fore are  only  supplied  at  cost,  plus  10  per  cent,  subject  to  the  hirer  agreemg  to  indemnify  the  company  from 
the  consequences  of  any  accident  that  may  occur  to  any  of  the  men  supplied,  and  to  reimburse  the  company 
any  sum  they  may  have  to  pay  in  respect  to  any  such  accident,  as  compensation  under  the  workmen's  com- 
pensation act,  1906,  or  any  other  act. 

FRESH    WATER    FOR    SHIp's    USE. 

Fresh  water  can  be  obtained  at  the  Manchester  Docks  (includmg  the  grain  elevator  by  vessels  discharging 
there),  Eccles  Wharf,  and  the  Latchford  and  Eastham  Locks,  the  charges  bemg  as  follows: 

For  boilers,  2s.  Gd.  per  1,000  gallons. 

For  drinking  (minimum  charge  not  less  than  as  for  100  gallons),  7d.  per  100  gallons. 

Charge  for  turncock's  attendance,  Is.  for  each  supply. 

These  charges  will  also  be  made  \vithout  overtime  for  turncock's  attendance  for  water  supplied  to  vessels 
at  the  Manchester  Docks  and  Eccles  Wharf  durmg  the  night. 


Shipowners  are  requested  to  provide  their  own  lights  and  attendance  thereto  on  board  slaip.  The  canal 
company  only  suppl}^  lights  on  board  at  the  expense  and  risk  of  shipowners  in  every  respect ;  and  if  lights  supplied 
are  objected  to,  written  notice  must  be  given  to  the  dock  traffic  superintendent. 

When  lights  are  supplied  by  the  canal  company,  the  following  charges  will  be  made: 

Oil  lamps,  2d.  per  lamp  per  hour. 
Gas  lamps,  Gd.  per  light  per  hour. 
Lampman  in  attendance,  8d.  per  hour. 
Minimum  charge  as  for  4  hours  each. 

Note. — \\Tien  more  than  one  light  is  used  with  one  gas  machine,  50  per  cent  additional  will  be  charged  for  each  extra  light. 

Naked  lights  are  not  to  be  used  either  in  loading  or  discharging. 

Electric  light  or  gas  lamps  supplied  at  grain  elevator,  on  dock  quad's,  or  in  sheds,  5s.  per  hatch  per  night; 
minimum  charge,  2s.  6d.  per  hatch. 

Note. — Electric  lights  and  gas  lamps  supplied  at  grain  elevator,  on  dock  quays,  or  in  sheds  are  only  charged  for  when  overtime  is 
worked. 

REGULATIONS  AND  RATES  FOR  THE  HIRE  AND  USE  OF  CRANES. 

Regulations. 

1.  AppUcation  for  the  use  of  cranes  and  deposits  to  cover  charges  for  their  use  must  be  made  at  the  dock 
office. 

2.  Wlien  a  crane  is  required  to  lift  a  weight  exceeding  20  hundredweight,  the  application  must  state  the 
maximum  capacity  of  the  crane  required.     In  the  event  of  a  greater  weight  than  stated  in  the  apphcation 


426  PANAilA  CANAL  TRAFFIC   AND   TOLLS. 

being  tendered  for  lifting,  and  being  lifted,  the  hirer  of  the  crane  will  be  liable  for  the  consequence  should  any 
accident  arise  therefrom. 

3.  The  exact  weight  of  every  article  to  be  lifted,  if  over  1  ton,  must  be  marked  thereon. 

4.  If  two  or  more  requisitions  be  lodged  for  the  use  of  a  particular  crane  for  the  same  time,  the  dock  traffic 
superintendent  shall  decide  which  requisition  shall  have  priority. 

5.  When  a  vessel  is  in  possession  of  a  crane  berth,  whether  she  is  working  or  not,  and  such  berth  is  otherwise 
required,  she  shall  vacate  the  same  if  instructed  to  do  so  by  the  dock  traffic  superintendent. 

6.  The  full  rate  of  liire  will  be  charged  according  to  the  schedule  for  any  crane  from  the  time  the  crane 
is  ready  for  use  until  a  notification  be  given  to  the  dock  traffic  superintendent  that  the  crane  is  no  longer  required. 

7.  After  steam  has  been  got  up  on  a  crane,  and  while  under  steam,  or  after'a  hydraulic  or  electric  crane 
has  been  placed  in  position,  should  notice  be  given  that  it  is  not  required,  a  charge  of  5s.  per  hour  will  be  made 
in  respect  of  the  30-ton  crane,  and  2s.  6d.  per  hour  in  respect  of  other  cranes,  with  a  minimum  charge  of  1.5s. 
and  7s.  6d.,  respectivelj^,  in  lieu  of  the  charges  scheduled. 

8.  Cranes  may  be  hired  from  the  canal  company  at  the  rates  fixed  per  hour,  but  in  such  cases  the  hirer 
of  the  crane  takes  the  risk  of,  and  is  liable  for,  the  consequences  of  all  accidents  arising  from  and  during  the 
hire  of  such  crane,  at  per  regulation  No.  9,  or  the  company  will  undertake  to  provide  cranage,  labor,  and  gear 
at  a  tonnage  rate  which  covers  such  risk. 

9.  When  a  crane  is  hired  per  the  hour,  the  hirer  is  responsible  for  the  consequences  of  any  accident  that 
may  occur  from  whatever  cause  arising  to  any  person  or  plant  by  the  use  of  such  crane  during  the  hire  of  same, 
as  though  the  crane  was  the  property  of  the  Iiirer. 

10.  Where  the  canal  company  undertakes  the  cranage  at  a  tonnage  rate,  and  the  weight  of  the  article 
to  be  lifted  is  correctly  declared  (see  regulation  No.  3),  the  risk  of  accidents  arising  from  the  use  of  the  crane 
is  accepted  b}'  the  compan}',  unless  the  person  who  has  requisitioned  the  crane,  by  liis  own  or  his  servant's 
act,  has  contributed  to  the  accident. 

11.  The  canal  compan}'  do  not  hold  themselves  responsible  for  any  delays  M-liich  may  arise  in  supplj'ing 
cranes  by  the  time  requisitioned,  or  through  the  breakdown  of  any  crane  while  on  hire. 

Hates  for  hire  and  use  of  cranes. 
Portable  steam  cranes: 

Not  exceeding  30  hundredweight  lifting  capacity —  s.  d. 

Minimum  charge 10    0* 

For  any  period  exceeding  4  hours,  per  hour 2    6 

Exceeding  30  hundredweight  and  up  to  7  tons  lifting  capacity — 

llinimum  charge 12    6 

For  any  period  exceeding  3  hours,  per  hour 3    6 

Hydraulic  cranes; 

Not  exceeding  30  hundredweight  lifting  capacity — 

ilinimum  charge ; . . .   10    0 

For  any  period  exceeding  4  hours,  per  hour 2    6 

Electric  cranes: 

10  hundredweight  lifting  capacity — 

Minimum  charge 7    6 

For  any  period  exceeding  4  hours,  per  hour 2    0 

30  hundredweight  lifting  capacity — 

Minimum  charge 10    0 

For  any  period  exceeding  4  hours,  per  hour 2    6 

When  the  distant  control  gear  for  cranes  is  requisitioned,  an  additional  charge  of  Is.  per  hour  will  be  made 
for  the  use  of  the  crane. 

The  before-mentioned  rates  cover  only  the  use  of  the  crane  and  driver  to  work  it. 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  427 

Rates  for  use  of  SO-ton  crane. 
Rate  per  hour:  £   s.  d. 

Minimum  charge 110    0 

For  any  period  exceeding  3  hours,  per  hour 10    0 

These  rates  cover  only  the  use  of  the  crane  and  clriTcr  to  work  it. 

Tonnage  rates: 

For  lifts  not  exceeding  10  tons,  23.  6d.  per  ton;  minimum  charge  £1  5s. 
For  lifts  over  and  not  exceeding  15  tons,  3s.  6d.  per  ton; 
For  lifts  over  15  and  not  exceeding  20  tons,  4s.  6d.  per  ton. 
For  lifts  over  20  and  not  exceeding  25  tons,  5s.  per  ton. 
For  lifts  over  25  and  not  exceeding  30  tons,  5s.  6d.  per  ton. 

These  rates  cover  cranage,  labor,  and  use  of  the  necessary  gear  for  Ufting  cUreet  from  railway  wagon  or 
road  vehicle  (or  barge  alongside  when  practicable),  and  putting  on  board  vessel,  or  vice  versa. 

For  each  additional  lift  of  the  same  article  wliile  the  crane  is  under  steam  50  per  cent  of  the  above  rates 
will  be  charged,  but  if  steam  has  to  be  specially  raised  the  full  rates  will  apply. 

Wlien  an}^  crane  is  hired  to  work  by  time,  the  foregoing  rates  cover  the  service  only  during  the  ordinary 
working  hours.     For  overtime,  s"fee  "Overtime  clause,"  page  424. 

Further  information  as  respects  labor  charges  maj-  be  obtained  from  tha  dock  traffic  superintendent,  at 
the  offices,  Trafford  Road,  Salford. 

CHARGES^  AXD  REGULATIOXS  FOE  THE  HIRE  OF  THE  CAXAL  COMPAXT'S  ELECTRIC  SHEER  LEGS  AT  EASTHAM  LATBTE 
FOR    LIFTIXG    AXD    REPLACIXG    TOPS    OF    FUXXELS    OR    MASTS. 

Charges. 

For  first  hour  or  part  of  same £5 

Each  addditional  hour  or  part  of  an  hour 1 

REGULATIOXS. 

1.  Requisitions  for  the  hire  of  the  electric  sheer  legs  at  Eastham  Laybye  and  deposits  to  cover  charges  for 
hire,  must  be  lodged  either  at  the  dock  office,  at  the  canal  superintendent's  office  at  Eastham  Locks  or  Runcorn, 
or  at  the  canal  company's  office,  IS  Chapel  Street,  Liverpool,  at  least  12  hours  before  the  sheer  legs  are  required, 
and  not  later  than  5  p.  m. 

2.  The  company  will  not  be  responsible  for  any  delay  that  may  arise  in  getting  the  sheer  legs  ready  for 
work  by  the  time  requisitioned,  or  for  anj'  breakdown  of  the  appliances  while  on  hire,  or  from  any  other  cause 
whatsoever. 

3.  The  sheer  legs  are  capable  of  lifting  15  tons  to  a  height  of  105  feet  above  water  level.  In  the  event  of 
a  greater  weight  being  tendered  for  lifting,  and  being  lifted,  the  hirer  will  be  liable  for  the  consequences  should 
any  accident  arise  therefrom. 

4.  If  two  or  more  requisitions  be  lodged  for  the  hire  of  the  sheer  legs  for  the  same  time,  the  canal  superin- 
tendent at  Runcorn  shall  decide  which  requisition  shall  have  priority. 

5.  When  a  vessel  is  in  possession  of  the  sheer  legs  berth,  and  such  berth  is  otherwise  required,  she  shall 
vacate  the  same  if  instructed  to  do  so  by  the  canal  superintendent  at  Runcorn. 

6.  The  canal  company  only  provide  labor  to  work  the  sheer  legs,  and  the  liirer  must  provide  any  other 
labor,  and  also  gear,  that  ma}'  be  required. 

7.  The  liirer  will  be  responsible  for  the  consequences  of  an}'  accident  that  may  occur,  from  whatever  cause 
arising,  to  any  person  or  plant  by  the  use  of  the  sheer  legs  during  the  hire  of  same  as  though  the  sheer  legs 
were  the  property  of  the  hirer. 

CHARGES    AND    ARRANGEMENTS    FOR    COAL    SHIPMENTS. 

Vessels  entering  the  ship  canal  in  ballast  to  load  coal  are  charged  only  one-half  ship  dues.     (See  differential 

ship  dues,  clause  2,  p.  413.) 

Coal  can  be  obtained  at  the  folIo^\^ng  shipping  places  upon  the  Manchester  Ship  Canal: 

Partington'  coal  hasin. — Partington  is  the  nearest  shipping  port  for  the  South  Yorkshire  collieries  and  only 

8  miles  from  the  nearest  Lancashire  colliery,  and  coal  from  aU  collieries  can  be  received  there  by  railway.     Six 


428  PANAMA  CANAL  TEAFFIC   AND   TOLLS. 

hydraulic  tips  (erected  by  Messrs.  Sir  W.  G.  Armstrong,  Mitchell  &  Co.  and  Messrs.  Glenfield  &  Kennedy)  are 
in  use,  and  vessels  ohtain  coal  \vith  the  best  possible  dispatch. 

The  railway  rates  from  the  collieries  upon  coal  for  shipment  include  conveyance  over  the  railway  of  the 
Manchester  Ship  Canal  Co.  to  the  tips,  and  tipping,  the  only  charge  in  addition  to  ship  dues  against  the  ship, 
being  for  trimming  or  other  service  that  may  be  requisitioned. 

Trimming  charges  (per  ton)  applicable  to  nonself-trimming  vessels: 

Cargo  coal —  d. 

Ordinary  trimming 3 

WTien  any  hold  of  a  vessel  is  only  partially  filled  with  coal  and  the  canal  company  are  required  to  level  such  coal 
throughout  to  enable  other  cargo  to  be  placed  thereon,  the  extra  lalior  incurred  by  such  leveling  over  that  covered 
by  the  comjjany 's  ordinary  trimming  rate  will  be  charged  for  at  the  rate  of  3d .  per  ton  upon  one-third  of  the  quantity 
of  coal  loaded  in  that  particular  hold. 
Bunker  coal — 

Ordinary  trimming 6 

Ordinary  trimming,  oil-tank  steamers ^h 

Applicable  to  self-trimming  vessels: 

d. 

Cargo  coal li 

Bunker  coal  (maximum  weight,  80  tons) 14 

Note. — If  more  than  80  tons  of  bunker  coal  are  loaded,  the  trimming  charges  applicable  to  nonself-trimming  vessels  will  apply  to 
the  total  weight  of  bunker  coal. 

Vessels  must  provide  men  to  regulate  the  self-trimming  chutes;  other\vise  the  canal  company  will  charge 
the  nonself-trimming  rates. 

The  trimming  of  surplus  bunker  coal  after  bunkers  are  filled  is  charged  for  as  under  (per  ton) : 

d. 

When  loaded  in  the  vessel's  hold  proper  to  be  charged  at  the  cargo  rate  of 3 

When  loaded  into  temporary  bunkers,  bulkheaded  off  from  the  hold  or  in  between  decks i\ 

Extra  services:  Wlien  bunker  coal  requires  to  be  thrown  into  the  bunkers  beyond  a  distance  of  21  feet 
from  the  hatchway,  or  wheeled  into  the  bunkers,  such  coal  will  be  charged  4d.  per  ton  in  addition  to  the  ordinary 
trimming  rate  to  cover  the  cost  of  the  wheeling  or  double  throwing  of  the  coal  into  the  bunkers. 

No  charge  is  made  for  the  weighing  of  loaded  and  taring  of  empty  trucks. 

Manchester  docks. — The  large  and  constantly  increasing  demands  upon  the  quay  space  and  railways  at  the 
docks  for  the  importation  and  shipment  of  merchandise  compels  the  canal  company  to  restrict  the  bunkering 
of  steamers  and  loading  of  cargo  coal  from  railway  trucks  except  as  noted  below : 

At  Pomona. — Coal  for  bunkering  only  when  consigned  to  a  specific  steamer  or  line  of  steamers  and  not  sent 
to  the  docks  more  than  seven  da3's  in  advance  of  the  day  of  bunkering. 

Charges: 

Shipped  from  railway  wagons  by  the  canal  company's  steam  cranes,  including  trimming.  Is.  per  ton. 
When  baskets  or  barrows  have  to  be  used  for  conveying  the  coal  to  the  bunkers,  3d.  per  ton  extra  will  be  charged. 

At  Weaste. — With  a  view  to  providing  better  facilities  for  the  shipment  of  cargo  and  bunker  coal  at  Man- 
chester, the  company  have  made  arrangements  with  Messrs.  Tannet,  Walker  &  Co.,  of  Leeds,  for  the  erection  by 
them  of  a  hydraulic  coaling  crane  on  the  site  recently  occupied  by  the  steam  coaling  crane  of  Messrs.  Andrew 
Knowles  &  Sons  at  Weaste,  just  below  Mode  Wheel  Locks. 

The  new  crane  will  be  completed  and  ready  for  work  at  an  early  date.  An  announcement  as  to  the  definite 
date  will  be  made  later,  when  particulars  of  the  rates  and  conditions  applicable  will  be  given. 

Coal  by  barges. — Loading  of  bunker  or  cargo  coal  from  barges  can  be  effected  in  any  of  the  Manchester  docks, 
the  canal  company's  rates  for  the  service  being  as  under,  viz: 

When  in  bulk  in  the  barges,  filling,  trimming,  and  use  of  appliances,  ships  providing  steam  and  winches  when  required.  Is.  3d. 
per  ton. 

^Vhen  in  boxes  in  the  barges,  including  use  of  cranes  and  trimming,  liut  not  including  the  cost  of  hooking  the  boxes  on  to  the 
crane,  6d.  per  ton  for  cargo  coal;  Is.  per  ton  for  bunker  coal. 

Coal  by  barges  can  be  obtained  from  collieries  on  the  Bridgewater,  Bolton  and  Bury  Leeds  and  Liverpool,, 
and  North  Staffordshire  (Trent  and  Mersey)  Canals. 


PANAiLA.  CANAL  TRAFFIC   AND   TOLLS.  429 

Haulage  oj  coal  over  the  dock  railways. — Haulage  of  coal  (including  weighing)  when  not  covered  by  railway- 
company's  through  rate,  6d.  per  ton. 

Unsold  coal  will  not  be  received  by  the  canal  company  on  theii-  railways  at  the  docks. 

Trimming  charges  on  cargo  or  bunker  coal  are  payable  by  the  shipo^^^lers. 

Ship  canal  toll  on  coal  sliipped  in  the  canal  (payable  b)^  merchants  unless  otherwise  provided  and  arranged 
for  with  the  canal  company) : 

In  section  C  of  the  canal,  6d.  per  ton. 

In  sections  A  and  B  of  the  canal,  4d.  per  ton. 

The  canal  company  do  not  undertake  to  load  cargo  or  Dunker  coal  during  the  time  steamers  are  loaduig  or 
discharging  merchandise,  except  when  the  service  can  be  done  without  interfering  with  the  said  loading  or 
discharging. 

Weight  certificates. — Coal  weight  certificates  may  be  obtained  from  the  canal  company  at  the  following 

charge  per  certificate  per  consignment: 

s.  d. 

For  quantities  not  exceeding  50  tons 1  0 

Above  50  and  not  exceeding  75  tons 1  6 

Above  75  and  not  exceeding  100  tons 2  0 

Above  100  and  not  exceeding  500  tons .• 2  6 

Above  500  and  not  exceeding  1,000  tons 5  0 

Above  1,000  and  not  exceeding  2,000  tons 7  6 

Above  2,000  tons  and  upward 10  0 

Runcorn. — Coal  is  received  here  by  railway  from  collieries  and  b}'  lighter  from  collieries  on  the  Bridgewater, 
Bolton  and  Bury,  Leeds  and  Liverpool,  and  North  Staffordshire  (Trent  and  Mersey)  Canals.  It  is  shipped  by 
balance  tips  in  the  Runcorn  docks  and  by  tip  in  the  ship  canal  and  also  direct  ex  railway  wagon  or  barge  at  the 
lay-by. 

Charges: 

For  loading  at  the  Lw-by  in  the  canal: 

Bunker  coal.  Is.  per  ton  direct  ex  railway  wagon  (3d.  per  ton  extra  if  baskets  or  wheelbarrows  are  used); 
Is.  3d.  per  ton  when  ex  barge. 

Cargo  coal,  Is.  per  ton  ex  railway  wagon  or  barge. 

These  rates  include  ordinary  trimming. 

For  loading  at  the  tip  in  the  canal: 

Bunker  coal,  6d.  per  ton  for  tipping  and  ordinary  trimming. 

Cargo  coal,  4d.  per  ton  for  tipping  and  ordinary  trimming. 

If  overtime  is  worked  at  either  the  tip  or  the  lay-by,  the  following  extra  charges  will  be  pa^-able: 

On  cargo  coal,  3d.  per  hour  per  man. 

On  bunker  coal,  50  per  cent  extra  on  the  scheduled  rates,  with  a  minimum  as  for  i^O  tons. 

Working  hours  are : 

Summer,  6  a.  m.  to  5.30  p.  m. 

Winter,  daylight  to  dark. 

For  Runcorn  Dock  charges  application  should  be  made  to  the  Runcorn  agent  of  the  Bridgewater  depart- 
ment, Mr.  J.  Evans,  Runcorn  Docks. 

EaiidocTc  Wharf,  Acton  Grange. — Coal  is  received  here  by-  railway  from  the  collieries  of  Messrs.  Richard 
Evans  &  Co.  (Ltd.),  the  wagon  boxes  being  lifted  and  tipped  by  steam  crane. 

Messrs.  Evans  &  Co.  make  their  own  charges  for  shipping  the  coal.  Their  address  is,  Colliery  Proprietors, 
Haydock,  St.  Helens,  Lancashire. 

Ellesmere  Port. — Coal  is  received  here  by  railway  from  all  collieries,  and  is  loaded  by  the  Shropshire  Union 
Canal  Co.  by  means  of  their  hydraulic  tip  (erected  by  Messrs.  Tannet,  Walker  &  Co.)  in  the  ship  canal.  They 
make  their  own  charges  for  the  service. 

Further  information  on  matters  generally  may  be  obtained  upon  application  at  the  various  offices  of  the 
canal  company,  viz: 

Head  office,  41,  Spring  Gardens,  Manchester.  Telegraphic  address,  "Canal,  Manchester."  National 
Telephone,  No.  6224  city  (5  lines). 


430  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Dock  office,  Trafford  Road,  Manchester.  Telegraphic  address,  "Waterway,  Manchester."  For  railway- 
rates  department  only,  "Facility,  Manchester."  For  tolls  department  only,  "Indoor,  Manchester."  National 
Telephone,  No.  6481  central  (5  lines).     For  forwarding  department  only.  No.  4118  central. 

Dock  traffic  and  railway  offices,  Trafford  Road,  Salford.  Telegraphic  addresses:  For  dock  traffic  depart- 
ment only,  "Outdoor,  Manchester."  For  railway  department  only,  "Tracks,  Manchester."  National  Tele- 
phone (for  either  dock  traffic  department,  railwa}^,  police,  or  stores  department),  No.  5916  central  (6  lines). 

Grain  elevator,  Trafford  Wliarf,  Manchester.  Telegraphic  address,  "Waterway,  Manchester."  National 
Telephone,  Nos.  4117  and  4940  central. 

Liverpool:  18  Chapel  Street,  Liverpool.  Telegraphic  address,  "Waterway,  Liverpool."  National  Tele- 
phone, No.  5517  central. 

London:  9  and  11,  Fenchurch  Avenue,  London.  Telegraphic  address,  "Chiusa,  London."  National 
Telephone,  No.  2824,  Avenue  Exchange. 

Runcorn:  Bridgewater  office,  Runcorn.  Telegrapliic  address,  "Docks,  Rimcorn."  National  Telephone, 
No.  4.3,  Runcorn. 

Partington  coal  office:  Telegraphic  address,  "Coal,  Cadisliead."  National  Telephones,  Nos.  54  and  64, 
Urmston. 

Toronto  (Canada):  R.  Dawson  Harling,  28,  Wellington  Street  East  and  Board  of  Trade,  Toronto.  Tele- 
graphic address,  "Harling,  Toronto." 

New  York  (United  States) :  Gloster  Armstrong,  Exchange  Floor,  Produce  Exchange  BuUding,  New  York 

City.     Telegraphic  address:  "Waybill,  New  York." 

E.  Latimer,  General  Superintendent. 

Dock  Office,  Manchester,  5ep<em6er  50,  1911. 


APPENDIX   VII. 


MANCHESTER  CANAL:    "TOLLS"  ON    MERCHANDISE    AND 
OTHER  CHARGES  PAYABLE  BY  MERCHANTS. 

34998°— 12 29  431 


APPENDIX  VII. 


MANCHESTER  CANAL:  "TOLLS"  ON  MERCHANDISE  AND  OTHER  CHARGES  PAYABLE  BY  MERCHANTS. 

,       [This  schedule  cancels  all  previous  schedules,  and  operates  on  and  from  Jan.  1,  1912,  until  further  notice.] 

Port  of  Manchester. 

schedule  of  rates  of  toll  and  wharfage,  quay  porterage  rates,  and  other  charges  payable  by 
merchants  to  the  manchester  ship  canal  co.,  also  rules  and  regulations  relating  to  traffic 
dealt  with  at  the  manchester  docks. 

Note. — The  rates  set  out  in  this  schedule  for  quay  porterage,  warehousing,  and  rent  are  the  same  as  those  in  operation  up  to  December 
31,  1911,  but  from  the  1st  day  of  January,  1912,  and  thereafter  until  further  notice,  an  additional  charge  of  10  per  cent  will  be  made  owing 
to  higher  rates  of  wages  and  other  increased  working  expenses. 

That  is  to  say,  beginning  on  the  1st  day  of  January,  1912,  and  thereafter  until  farther  notice,  10  per  cent  will  be  added  to  all  the 
within  mentioned  rates  for  quay  porterage,  warehousing,  and  rent. 

Dock  Office,  Manchester,  December  30,  1911. 


Index. 

Page. 

Distribution  of  traffic  from  the  docks,  warrants,  cartage  facilities,  etc 434 

Manchester  docks  and  their  equipment 434-^35 

Conditions  of  application  of  company's  charges 435-436 

Tolls  and  wharfage  rates: 

Passengers 436 

Animals 437 

Merchandise  and  minerals 437-452 

Merchandise  and  minerals  not  provided  for  in  pages  437-452 453 

Rules  and  regulations  relating  to  merchandise  and  minerals  discharged  or  shipped  at  the  docks: 

Imports : 453^59 

Exports 459 

Custody  of  goods  on  the  quay 453 

Quay  porterage  charges  and  services 454-455 

Overtime 455 

Dangerous  goods 455 

Objectionable  goods 455 

Transshipment  cargo 455-456 

Warehousing  and  storage  charges  (imports) 456 

Storage  in  the  open 456 

Warehouse  and  storage  rent 457 

Sampling,  etc.,  of  merchandise  at  docks 457 

Dutiable  goods  lying  at  the  docks  (charges  on) 457-458 

Dried  fruit 458 

Regulations  and  rates  for  use  of  cranes 459^61 

Haulage  of  traffic  on  the  dock  railways 461^62 

Railway  traffic: 

Imports 463 

Exports 464 

Through  rates 462 

Duties  and  responsibilities  attaching  to  importers 453-454 

Conveyance  of  goods  by  canal  carriers 464 

433 


434  PANAMA  VJlNAL  TRAFFIC   AND   TOLLS. 

^LvNcnESTER  Ship  Canal. 

The  port  of  Manchester  was  opened  for  traffic  on  January  1,  1894. 

There  is  direct  railway  communication  between  the  qua3's  and  warehouses  of  the  Manchester  docks  and 
the  lines  of  the  various  railway  companies  serving  Manchester,  and  the  canal  company  quote  through  rates 
for  traffic  to  be  forwarded  direct  by  railway  from  or  to  the  docks  to  or  from  any  part  of  Great  Britain.  For 
further  particulars,  see  pages  462-464. 

The  canal  companj^'s  Bridgewatcr  (carrying)  department,  the  Anderton  Co.  (Ltd.),  Messrs.  Fellows, 
Morton  &  Claj'ton  (Ltd.),  the  Leeds  &  Liverpool  Canal  Co.,  the  Mersey,  Weaver  &  Ship  Canal  Carrj-ing  Co.,  the 
Rochdale  Canal  Co.,  Messrs.  Simpson  Davies  &  Sons,  Messrs.  T.  G.  Statter  &  Co.,  as  well  as  other  canal  carriers 
will  convey  traffic  between  the  docks  and  various  places  on  the  several  canals  in  the  district  and  othei-s  con- 
nected therewith  by  which  water  conveyance  is  practicable  between  the  docks  and  sundry  towns  in  Lancashire, 
Yorkshire,  Cheshire,  Staffordshire,  East  Worcestershire,  and  Nottinghamsliire.  (For  complete  list  of  water 
carriers  see  p.  464.) 

Traffic  requiring  warehousing  or  storage  in  the  open  can  be  warehoused  or  yarded  by  the  canal  company 
at  the  docks,  rates  for  which  can  be  obtained  on  application  at  the  dock  office,  or  dock  traffic  offices,  Trafford 
Road,  Salford. 

Warrants  are  issued  by  the  canal  company  in  respect  of  traffic  stored  upon  their  premises. 

If  required,  the  Bridgewater  department  will  also  arrange  for  cartage  to  and  from  the  docks  or  for  ware- 
housing at  the  companj^'s  town  warehouses,  and  inquiries  with  regard  thereto  should  be  addressed  to  the 
superintendent  of  that  department,  Mr.  J.  Oldfield,  Bridgewater  offices,  Chester  Road,  Manchester.  National 
telephone  No.  5307  Central  and  17S0  City. 

There  are  also  a  number  of  private  team  owners  who  lay  themselves  out  for  carting  traffic  from  and  to 
the  docks,  but  traders  must  make  direct  arrangements  with  them  for  any  cartage  services  the}'  may  require. 

Further  information  on  matters  generally  may  be  obtained  upon  application  at  the  various  offices  of  the 
canal  company,  viz: 

Head  office,  41  Spring  Gardens,  Manchester.  Telegraphic  address,  "Canal,  Manchester;"  National  tele- 
phone No.  6224  City  (5  lines). 

Dock  office,  Trafford  Road,  Manchester.  Telegraphic  address,  "Waterway,  Manchester."  For  railway 
rates  department  only,  "Facility,  Manchester."  For  tolls  department  only,  "Indoor,  Manchester."  National 
telephone  No.  6481  Central  (-5  lines).     For  forwarding  department  only.  No.  4118  Central. 

Dock  traffic  offices,  Trafford  Road,  Salford.  Telegraphic  addresses:  For  dock  traffic  department  only, 
"Outdoor,  Manchester;"  for  railway  department  only,  "Tracks,  Manchester;"  National  telephone  (for  either 
dock  traffic  department,  railway,  police,  or  stores  department).  No.  5916  Central  (C  lines). 

Grain  elevator,  Trafford  Wharf,  Manchester.  Telegraphic  address,  "Waterway,  ilanchester."  National 
telephone  Nos.  4117  and  4940  Central. 

Liverpool. — 18  Chajael  Street,  Liverpool.  Telegraphic  address,  "Waterway,  Liverpool."  National 
telephone  No.  5517  Central. 

London. — 9  and  11  Fenchurch  Avenue,  London.  Telegraphic  address,  "Chiusa,  London."  National 
telephone  No.  2824  Avenue  Exchange. 

Runcorn. — Bridgewater  office,  Runcorn.  Telegrapliic  address,  "Docks,  Runcorn."  National  telephone 
No.  43  Runcorn. 

Partington  coal  office. — Telegrapliic  address,  "Coal,  Cadishead."  National  telephones  Nos.  54  and  64 
Urmston. 

Toronto  (Canada). — R.  Dawson  Harling,  28  Wellington  Street  East,  and  Board  of  Trade,  Toronto.  Tele- 
graphic address,  "Harling,  Toronto." 

New  York  (United  States). — Gloster  Amistrong,  Exchange  Floor,  Produce  Exchange  Building,  New  York 
City.     Telegraphic  address,  "Waybill,  New  York." 

The  Manchester  Docks  and  their  Equipment. 

The  area  of  the  Manchester  Dock  estate  above  Mode  Wheel  Locks  is  406i  acres,  of  which  286i  acres  are  land 
and  120  acres  water  space. 

There  are  6A  miles  of  quay  berthing,  on  a  large  portion  of  which  transit  sheds,  some  five  floored,  have 
been  erected. 


PANAMA  CANAL  TRAFFIC   AND   TOLLS.  435 

The  equipment  includes  53  hydraulic,  61  steam,  and  93  electric  cranes,  varying  in  radius  from  16  to  40  feet, 
with  a  lifting  capacity  of  from  1  to  7  tons  to  a  height  from  rail  level  of  from  13  to  59  feet;  a  30-ton  steam  crane; 
30  hydraulic  and  16  electric  capstans;  46  locomotives;  6  floating  pontoons  of  a  dead-weight  carrying  capacity 
of  800  tons  each;  and  all  modern  appliances  for  giving  vessels  quick  dispatch. 

There  is  also  a  pontoon  sheers,  capable  of  dealing  with  weights  up  to  250  tons,  with  a  lift  of  21  feet. 

The  docks,  quays,  transit  sheds,  and  warehouses  are  lighted  by  electricity. 

Protection  against  fire  at  the  docJcs. — The  Gamewell  fire-alarm  system  is  maintained  at  the  docks,  by  means 
of  wliich  the  Manchester  and  Salford  fire  brigades  are  immediately  advised  of  any  outbreak  of  fire  at  any  point 
on  the  dock  estate.  The  canal  company  also  maintain  on  the  docks  an  efficient  and  fully-equipped  fire 
brigade. 

There  is  also  a  powerful  steam  fire  and  salvage  boat  for  the  protection  of  property,  the  two  fire  pumps 
being  each  capable  of  delivering  2,000  gallons  per  minute,  and  the  two  salvage  pumps  2,500  gallons  each  per 
minute. 

The  boat  is  berthed  in  the  docks,  is  seK-propelling,  with  steam  always  kept  up,  so  that  she  can  proceed  to 
any  point  of  the  canal  at  short  notice  and  be  available  immediately  for  either  fire  or  salvage  work. 

There  is  a  grain  elevator,  with  a  storage  capacity  of  40,000  tons  (or  1,500,000  bushels),  and  containing 
268  separate  bins,  on  TraflFord  Wharf. 

The  following  operations  can  be  performed  simultaneou.«ly: 

(a)  Discharging  from  vessels  at  the  rate  of  350  tons  per  hour. 

(6)  Weighing  in  the  tower  at  the  water's  edge. 

(c)  Conveying  to  the  house,  and  distributing  into  any  of  the  268  bins. 

{d)  Moving  grain  about  witliin  the  house  for  changing  bins  or  for  delivery,  and  weighing  in  bulk,  at  the 
rate  of  500  tons  per  hour. 

(e)  Sacldng  grain,  weigjiing,  and  delivering  sacks  to  40  railway  wagons  and  10  carts  simultaneously. 

(/)  There  is  a  barge  dock  alongside  the  elevator  to  accommodate  barges  and  (or)  coasters  loading  grain 
for  conveyance  to  premises  on  inland  canals  or  to  coastwise  ports,  and  delivery  can  be  eft'ected  by  means  of  two 
delivery  conveyors  at  the  rate  of  450  tons  per  hour  if  in  bulk,  or,  if  bagged,  120  tons  (1,075  sacks)  per  hour. 

An  important  feature  in  the  elevator  is  ]\Ietcalf's  patent  dryer,  wliich  gives  most  satisfactory  results.  The 
dryer  is  capable  of  drying  50  tons  of  grain  at  each  operation,  and  grain  can  be  moved  to  or  from  the  dryer 
from  or  to  any  bin  in  the  house. 

A  powerful  pneumatic  apparatus,  capable  of  discharging  200  tons  per  hour  from  ship  into  the  elevator, 
is  provided  to  supplement  the  foregoing  appliances. 

Portable  grain  elevators. — The  canal  company  have  provided  a  number  of  these  for  the  discharge  of  grain 
from  sliips  when  necessary. 

The  docks  are  equipped  with  transit  sheds  (viz,  13  single-fioor,  1  two-floor,  6  tliree-floor,  5  four-floor, 
and  12  five-floor)  fitted  with  the  most  modern  appliances,  including  a  cold  chamber  for  the  sorting  of  frozen 
meat  and  other  perishable  produce. 

There  are  also  ranges  of  warehouses  on  the  docks  specially  built  for  the  warehousing  of  merchandise.  A 
number  of  the  warehouses  are  alloted  exclusively  for  the  storage  of  Egyptian,  Surats,  Brazilian,  and  East 
African  cotton  in  hard  pressed-packed  bales,  and  others  for  provisions,  breadstuffs,  leather,  fruits,  corn,  and 
seeds,  the  remainder  being  used  for  general  merchandise,  including  American  and  other  cotton. 

The  canal  company  also  have  a  large  warehouse  fronting  Traft'ord  Wharf  Road.  It  is  divided  into  four 
parts,  each  division  measuring  300  by  100  feet,  fitted  with  overhead  traveling  cranes  worked  by  electricity. 

Lines  of  railway  have  been  laid  on  all  the  dock  f[uays,  and  are  in  direct  communication  with  all  the  railways 
of  Great  Britain.     The  docks  are  also  connected  with  the  whole  of  the  inland  canal  system 

Conditions  of  Application  of  the  Company's  Charges. 

Imjmrt  traffic. — The  purchaser  of  merchandise  on  "c.  i.  f."  (cost,  insurance,  and  freight)  terms  pays 
the  ship  canal  toll,  wharfage,  and  charges  on  such  merchandise. 

The  seller  of  merchandise  ''ex  quay,"  "ex  warehouse,"  or  '"f.  o.  r."  (free  on  rail)  pays  the  ship  canal  toU, 
wharfage,  and  charges  on  such  merchandise. 

(See  also  par.  4,  p.  453.) 


436  PANMIA   CANAL  TRAFFIC   AND   TOLLS. 

Export  traffic. — The  purchaser  of  merchandise  "f.  a.  s."  (free  alongside  ship)  pays  the  ship  canal  toll,  wharfage, 
and  charges  on  such  merchandise. 

The  seller  of  merchandise  "f.  o.  b."  (free  on  board)  pays  the  ship  canal  toll,  wharfage,  and  charges  on  such 
merchandise. 

The  payment  of  all  charges  on  export  traffic  is  due  before  sliipment,  and  to  avoid  delays  and  inconvenience, 
suppliers  or  shippers  of  f.  o.  b.  merchandise  should  so  arrange  with  their  shipping  agents. 

(See  also  third  paragraph  under  "Export  traffic"  on  p.  459.) 

All  charges  are  made  upon  the  gross  weight  of  2,240  poimds  to  the  ton,  miless  otherwise  stated. 

MANCHESTER    SHIP    CANAL. 

Schedule  of  rates  of  toll  and  wharfage  operating  from  January  1,  1912,  until  further  notice,  jyayable  in  respect  of 

passengers,  animals,  merchandise,  and  minerals,  embarlced  or  landed,  shipped  or  unshipped,  transshipped,  or 

otherwise  using  the  ship  canal. 

Passengers. — Passenger  tolls  are  usually  included  in  the  fares  charged  by  the  shipowner.  Toll  between 
Manchester  docks  and  Eastham  (single  journey),  Is.  per  passenger. 

Animals,  merchandise,  and  minerals. — Toll  and  wharfage  in  respect  of  animals,  merchandise,  and  minerals 
are  a  charge  upon  the  traffic  conveyed,  and  not  upon  the  vessel  conveying  the  same,  and  are  payable  by  the 
owners  of  the  goods  unless  included  in  the  freight  by  special  contract  between  the  merchant  and  the  shipowner. 

For  the  purposes  of  toll  charges,  the  ship  canal  is  divided  into  the  three  following  sections: 

Section. 

Eastham  to  Runcorn  Swing  Bridge A. 

Runcorn  Swing  Bridge  to  Entrance  to  Latchford  Locks B. 

Latchford  Locks  to  Woden  Street  Bridge,  Manchester C. 

The  amounts  set  out  in  the  following  schedule  are  the  rates  of  toll  and  wharfage  payable  on  the  respective 
sections,  as  follows: 

Cargo  on  board  vessels  entering  or  leaving  the  ship  canal  through  any  of  the  locks  to  the  estuary  of  the  River  Mersey  and 

passing  over  any  portion  of  the  canal  between — 

Section. 

Eastham  and  Runcorn  Swing  Bridge A. 

Eastham  and  places  beyond  Runcorn  Swing  Bridge  up  to  the  entrance  to  Latchford  Locks B . 

Eastham  and  Latchford  Locks  (including  locks),  and  places  beyond  up  to  Woden  Street  Bridge,  Manchester C. 

Local  traffic. — Canal  tolls  and  wharfage  rates  will  be  quoted  specially  on  application  to  the  dock  office  for 
traffic  not  entering  or  leaving  the  ship  canal  by  the  estuary  of  the  River  Mersey.  Also  when  for,  or  from,  either 
of  the  docks  at  Widnes  when  using  the  Runcorn  Lock  only. 

Note. — WTiere  any  rate  of  toll — either  sectional  or  local — is  fixed  to  apply  to  an  article,  the  use  of  which  is  defined,  a  declaration  that 
such  article  will  not  be  otherwise  used  must  be  supplied  if  and  when  required  by  the  canal  company. 

Traffic  discharged  upon  one  section  of  the  ship  canal  and  afterwards  conveyed  by  barge  to  another  section 
within  12  months  from  the  date  of  importation  \vithout  having  left  the  canal  premises  in  the  meantime  (except 
where  otherwise  provided  by  the  canal  company)  is  only  charged  the  toll  and  wharfage  rate  of  the  section  last 
used;  and  in  the  case  of  goods  for  export  received  by  barge,  the  toll  and  wharfage  rate  applicable  to  the  section 
in  which  the  traffic  originates  is  only  charged. 

Note.— Claims  for  the  return  of  any  canal  toll  overpaid  in  respect  of  traffic  landed  in  one  section  of  the  canal  and  subsequently  bailed 
back  to  another  section,  must  be  lodged  at  the  dock  office  within  three  months  from  the  date  of  the  transaction,  or  the  claim  will  not  be 
recognized  by  the  company. 

Traffic  from  foreign  or  coastwise  ports  outside  the  River  Mersey  may  be  reshipped  from  one  seagoing  vessel 
to  another  in  the  ship  canal  on  payment  of  ship  canal  toll  and  wharfage  at  the  same  rates  and  upon  the  same 
terms  as  are  now  in  force  for  the  transshipment  or  reshipmeut  of  merchandise  in  the  docks  of  the  Mersey  docks 
and  harbor  board. 


PANAilA  CANAL  TRAFFIC  AND   TOLLS. 


437 


(Tolls  for  articles  marked  with  an  asterisk  (t  bus  *)  are  inclusive  of  a  charge  for  wharfage.    Where  there  is  no  asterisk  the  rates  are  for  toU  only,  but  the  use  of  the  canal  com- 
pany's wharves  is  free  subject  to  the  company's  regulations.] 


ToUs. 

A. 

«.    d. 

0  6 

1  11 
0    3 
0    4 

0  8 

1  1 

B. 

C. 

s.   d. 

0    8 

2    5 
0    4 
0    5 

0  11 

1  5 

s.   d. 

Poultry 

0    7 

*Horses 

Hn 

Merchandise  and  minerals  (per  ton  of  2,240  pounds 
Note.— Quay  porterage  rates:  Ten  per  cent  will  be  charged  in  addition  to  the  rates  set  out  herein. 


Quay  porterage 
rate'  (see p. 454). 


Quay  porterage 
rate'  (see  p.  454). 


Acetate  of  lime  (see  Lime,  acetate  of) 

Acids: 

Acetic  or  wood  (in  casks  or  carboys) . . 
Arsenic  (solid)  in  casks  or  iron  drums 
Boracic  (in  casks) 


Carbolic  (in  casks  or  iron  drums) 

Chromic  (in  carboys) 

Chromic  (in  bottles  packed  in  cases) . 

Chromic  (in  casks  or  drums) 

Citric  (in  casks  or  cases) 

Cresylic  (in  casks  or  iron  drums) 

Muriatic  (in  carlioys) 


1  10 
1  10 
1  10 


Muriatic  (in  bottles  packed  in  cases 
or  hampers) 


Nitric  or  aqua  fortis 

Oleic  (in  casks) 

Oxalic  (in  casks  or  cases) . 

Phosphoric  (in  casks) 

Sulphuric  or  oil  of  vitriol . 

Tannic  (in  casks) 

Tartaric 


Aerated  waters  (in  casks  or  cases) 

Agricultural  machines  and  implements: 

Complete  or  in  parts,  loose 

In  parts  (packed  in  cases) 

Agricultural  seeds(see  Seeds, agriculture). 

*Alabaster  stone  (in  slabs) 

1  Minimum  charge  for  quay  porterage,  9d. 


2    4 


3    6 


5  10 


1    3 
"1    0 


♦Alabaster  stone  (in  blocks  in  the  rough) . . 

Alabaster  stone,  In  lumps  (unground) 

Alabaster,  figures,  casts  or  ornaments. . . 
*Albumen 

Alder  poles  in  crates  under  30  hundred- 
weight  

Ale  and  porter  in  casks,  kegs,  or  bottled 
when  in  cases  or  casks 

Algerian  fiber  (as  fibers). 

Alizarine  (as  dye  extracts  and  dyes). 

Alkaline  earth,  or  strontia 

Alkanet  root 

Almonds  (see  Fruit,  dried). 

Alum  and  alum  cake 

Alum  waste 

Alum  liquor  (mordant) 

Alumina,  acetate  of 

Alumina,  hydrate  of,  or  bauxite  (see 
Bauxite). 

Alumina,  sulphate  of  (see  Sulphates). 

♦Aluminum  (e.o.h.p.) 

Aluminum    bars,    ingots,  plates,  rods, 
wire,  and  sheets 

Aluminoferric 

Aluminosilic 

Alumite  (from  Australia) 

Alundum  ore  (see  Ores). 

Amber  (rough) 

American  cloth  (as  drapery,  heavy). 

Ammonia,  muriate  of 

•Casks. 


1    7 

0  10 
3  6 
3    4 

1  9 
I    2    0 


1  0 

2  4 

1    0 
1    0 

1  10 

2  0 


3    6 

2    4 


2    6 
2    5 


1    6 
3    6 


1    9 
1    9 


3    6 
1    9 


2  10 
2  0 
8  0 
6  10 

4    0 

4    0 


2    6 
5  10 

2  6 

2  6 

4  0 

5  0 


5  10 
2  6 
2    6 


s.     i. 
0    10 


1  0 

1  6 

1  0 

1  0 

1  0 

1  3 


1  6 

1  0 

1  0 

1  0 


438 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


Quay  porterage 
rate  (see  p.  454). 


Ammonia,   sulphate   of   (see    Manure, 
packed). 


Ammoniacal  liquor 

Anchors  (see  Iron  or  steel). 

Angelica  root 

Angle  barsor  plates(see  Iron  or  steel). 
Aniline  colors  (as  dye  extracts  and  dyes). 
Aniline  oil  (see  Oils). 


Aniline,  salts  of  (as  Dye  e.^tracts  and 
dyes). 


Annatto  or  annotto  (in  casks) . 


Antifoiiling  composition  not  giving  off 
inflammable  vapor  at  less  than  73°  F  ., 


Antifriction  metal  . 


2    4 
2    4 


Antimonine  (in  casks)  (as  dye  extracts 
and  dyes) 


Antimony  ore  (see  Ores). 

Antimony  ore  waste 

Antimony  regulus 

Antimony  salts 

Apitizo  grains  (patent  food)  in  cases . 
Apples  (raw  and  dried)  (see  Fruit). 

Argols  or  tartars 

Arrowroot 

Arsenic 

Asafoetida  (as  drugs). 

Ashestic  slates  or  slabs 

Asbestine  (in  bags) 

Asbestos  (crude) 

Asbestos  (ground),  in  casks  or  bags.. 

Asbestos  for  steam-pipe  covering 

Ashes,  Russian  (pot  or  pearl) 

Asphalt,  paving  (in  blocks) 

Asphalt,  compressed 


1  0 

1  6 

1  8 

1  3 

2  0 
2  4 
1    6 

1  6 
1  6 
1    6 

1  10 

2  0 
1    6 

0  10 

1  3 


Asphaltpipes  (conduits  for  electric  wires) 
(see  Pipes,  asphalt). 


Asphalt  powder  (in  bags)  (as  asphaltum). 
Asphaltum 


Automobiles,  in  parts  (packed  in  cases) 
(as  motors) 


Bacon  and  hams,  cured  (packed) . 
Baggage  or  luggage 


Bagging  (for  paper  making)  (as  paper- 
making  material). 

Bags  or  sacks  (in  bales) 

Baking  powder 

Balsam  (as  drugs). 


2    0 
2  10 


2    0 
2    2 


3    6 
3    6 


1  3 

2  3 

2  6 
1  10 

3  0 
3    0 

1  10 

2  3 
1  10 

1  10 

2  5 

3  0 
2  3 
1  3 
1  10 


3  0 

4  3 


2  5 

3  0 


5  10 
5  10 


4  2 
3  0 

5  0 
5  0 
3  0 

3  0 

3  0 

3  0 

4  0 

5  0 
3  9 

2  0 

3  0 


5    0 

7    0 


4  0 

5  0 


1    0 
1    5 


2  6 

1  3 

2  6 

1  2 

1  6 


1    0 

0  10 

1     0 

1    0 

1    9 

1    3 

2    0 

1     3 

1     0 

1     0 

1     0 

1     0 

1     0 

0  10 

1     0 

Bananas  (see  Fruits,  green). 
Barilla 


Bark,  for  dyeing  or  tanning  (chopped, 
packed  in  bags,  or  hydraulic  pressed).  . 

Bark  for  dyeing  or  tanning,  not  otherwise 
defined  (in  casks) 


Bark  (in  other  packages) . 

Bark  (loose) 

*Bark,  ground  (in  l>ags) . . 
Bark,  spent 


Bars,  angle  (see  Iron  or  steel). 

Barjrtes,  raw  (in  bulk) 

*Barytes  (in  casks  or  bags) 

Basic  slag  (unground  and  in  bulk) 

Basic  slag  (ground,  packed) 

Baskets  and  basket  ware,  osier  or  twig. . . 

Baskets  and  basket  ware,  of  spale,  or 
spale  swills,  or  chip,  coarse  (in  bundles). 

Bass  or  bast 

Baths 

Battledores  (common)  wood 

Bauxite  or  hydrate  of  alumina  (e.  o.  h.  p. ) . 

Bauxite,  low  class,  from  Ireland 

♦Beads  (in  packages) 

Beams  (iron  or  steel)  (see  Iron  or  steel). 

Beamstone,  groimd,  in  bags  (for  concret- 
ing purposes) 


*Beans,  haricot 

Bearers  (iron  or  steel)  (see  Iron  or  steel). 


Beef  (in  brine) 

Beer,  spruce  (as  ale). 

Beeswax 

♦Berries,  bay,  juniper,  and  yellow. 
Betel  nuts 


Bicarbonate  of  soda  (in  casks)  (see  Soda, 
bicarbonate  of). 


Bichromate  of  soda  (in  casks)  (see  Soda, 
bichromate  of). 


Bicycles 

Bicycles  (in  parts),  packed . 


1  8 

1  0 

1  8 

1  8 

1  8 

2  5 
1  0 


0    5 

0  9 
2  10 

2  6 

2  0 

2  4 

2  0 

1  0 


1  5 

2  0 


2  4 
2  9 
2    0 


3    3 
3    0 


2  6 

2  6 

2  6 

3  3 
1  3 


0  8 

1  0 
4  3 

3  8 

3  0 

3  6 

3  0 

1  3 


1  10 

2  G 


3  0 

4  0 
3    0 


4  10 
3    8 


4  2 
4  2 
4  2 
4  11 
2    0 


2  0 

2  6 
1  0 
1  S 
7  0 

6  0 
5    0 

5  10 
4  0 
1  8 
1    0 

6  0 

3  0 

4  0 


5  0 

6  0 


8    0 
6    0 


s.    d. 

1    0 

1    G 

1    3 
1    6 


1  0 

2  6 

2  6 

2  6 

2  0 

1  6 


1    0 
1    3 


1    3 

1  9 

2  0 


2    6 
2    6 


PANAilA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


439 


Quay  porterage 
rate  (see  p.  454). 


Quay  porterage 
rate(seep.454). 


Binders  (iron  or  steel)  (see  Iron  or  steel). 

Binder  boards  (as  millboards). 

Biscuits 

Bitumen  (in  bags  or  barrels) 

Blacking 

Black  lead 

*Blanc-fixe  waste 

Bleaching  powder 

Blind  rollers  and  cornice  poles,  in  the 
rough  (wood) 

Blood  for  manure  (see  Manures). 

Blood  (dried)  in  cases 

Blood  (e.  o.  h.  p.)  (in  casks  or  iron  drums) 

Bluestone  (as  sulphate  of  copper). 

Boards,  composition  (see  Composition 
boards). 

Boards,  three-ply 

Bobbins  (in  bags) 

Bobbin  blocks 

Bog  ore  (for  gas  purifying)  (see  Ores). 

Boilers,  iron  or  steel  (see  Iron  or  steel). 

Boiler  composition  for  preventing  incrus- 
tation   

Boiler  for  retaining  heat 

Boiler  fitting  (not  accompanying  boiler) 
(see  Iron  or  steel). 

Bone  ash 

Bonts  for  size 

Bones  for  manure  (see  Manure). 

♦Books  (in  packages) 

Boot  dressing  (in  bottles,  in  cases)  not 
giving  off  inflammable  vapor  at  less 
than  73°  F 

Boots,  shoes,  and  slippers 

Boracie  acid  (see  Acid). 

Boracite 

Borate  of  lime  (see  Lime,  borate  of). 

Borate  of  soda  (see  Soda,  borate  of). 

Borax 

Borocalcite 

Bottles  and  jars  (earthenware  or  stone- 
ware)  

Bouliniton  (see  Floorcloth). 

Box  boards  (in  bundles) 

Bran  (in  sacks  or  bags) 

Sran  (in  press-packed  packages) 


2  0 

1  3 

1  8 

2  0 
1  4 
1  3 


2    4 
1     0 


1  5 

2  0 
1    G 


2    0 
1    0 


0  10 

1  6 


1  10 
1    5 


1  5 
1  3 
1    3 


3    0 

1  10 

2  6 

3  0 


3    6 
2    3 


1  10 
3  0 
1  10 


2    5 
1  10 


1    1 
1  10 


2  6 

3  0 


2    5 
1  10 


1  10 
1  10 
1  10 


5  0 

3  0 

4  0 

5  0 

2  6 

3  0 


3  0 
5  0 
3    0 


4    0 
3    0 


2  0 

3  0 


4  0 

5  0 


4    0 
3    0 


3  0 
3  0 
3    0 


1  6 

1  0 

1  0 

1  0 

1  0 

1  0 


1    6 
1    3 


2  0 
1  3 
1    3 


1    6 
1    6 


1    0 
1    3 


2    0 
2    3 


1    0 
1    0 


Bran  when  for  export  by  steamer  direct 
from  Manchester  to  places  outside  the 
River  Mersey 


Brass 

Brass  manufactures  (as  hardware). 

Brass  wire  (in  cases) 

Brattice  cloth 

Bricks,  bath 

Bricks  (clay,  common,  and  tire) . . . 
Bricks  (enameled  or  glazed) 


Brimstone  (cnide  or  manufactured)  (as 
sulphur). 


Briquettes  (patent  coal  fuel). . 
Briquettes  (patent  peat  fuel) . 


Briquettes,  iron  ore  (see  Iron-ore  bri- 
quettes). 


Bristles  (in  boxes,  cases,  or  casks) . . . 
British  gum  or  dextrin  (see  Dextrin). 
Broom  and  brush  heads  and  blocks. . 

Brooms  and  brushes 

Bungs  or  shives,  wood  (in  barrels). . . 


Butter  (in  casks,  firkins,  baskets,  or 
bo.xes,  or  in  tubs  or  cools  with  wooden 
lids) 


Burnt  ore  (see  Ores). 


Cables,  telegraphic,  telephonic,  and  elec- 
tric (in  coils  or  drums) 


?  Hair). 


Cables,  chain 

Cables,  rope 

Cake  (for  cattle  feeding) 

*Camel  hair  (press-packed)  (i 
Candied  peel  (see  Peel). 
*CandIes,  carbon  (for  electric  lighting). . 
Candles  (paraffin,  tallow,  and  stearin).., 

*Canes  and  rattans  (in  bundles) 

Canvas,  not  oily  (in  bales  or  boxes) 

Caps  (in  boxes  or  cases) 

Carbide  of  silicon  (packed) 

Carbolic  acid  (see  Acids). 
*Carbon  plugs  (as  candles,  carbon). 
Carbonate  of  zinc  (see  Zinc,  carbonate  of). 
Carbon,  gas,  from  gas  retorts 


2    3 
2    0 


0    9 
0  11 


2    0 

1  5 

2  0 


Carborundum  fire  sand  (packed),  for  use 
by  brass  and  iron  founders 


Carboys,  empty  (see  Empties). 
♦Cardamoms 


2  0 

3  0 


1    0 
1    5 


3  0 
2  5 
1  10 
1  0 
1    3 


0    4 
0    S 


2  5 

3  8 
2    5 


3  0 
1  10 
3  0 
1  10 


3  7 
2  5 

4  4 

2  5 

3  8 
2  5 


1  0 

5  0 

5  0 

4  0 

3  0 


0  6 

1  0 


4  0 
6  0 
4    0 


5     0 
3    0 


5  0 
4  0 

6  0 
4  0 
6  0 
4  0 


2  0 

3  0 


1    6 
1    3 


440 


PANAMA  CANAL  TKAFFIC   AND   TOLLS. 

Merchandke  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


Quay  porteraei 
rate  (see  p.  464). 


Cardboard 

Carpets  and  carpeting  (e.  o.  h.  p.) . 
Cars,  motor  (see  Motors). 

Casein 

Castor  beans 


♦Castings,  light  (iron  or  steel)  (see  Iron  or 
steel). 


Casts  of  busts,  statues,  or  figures,  in  plas- 


Casts,  plaster  (common),  for  ornament- 
ing ceilings 


s.     d. 

1  8 

2  4 


1    8 
1    5 


3    6 
3    0 


*Cattle  food  (surplus),  when  landed  at 
mode  wheel  lairages,  for  use  of  cattle 
landed 


Caustic  soda  (see  Soda,  caustic). 

Cement  (e.  o.h.  p.) 

Cement  (metallic)  in  blocks 

Cement  (metal)  in  slabs,  packed. 


Cement  (cycle)  in  boxes,  not  giving  off 
inflammable  vapor  at  less  than  73°  F.  - 


Chairs,  common  (not  stuffed) 

Chairs  and  seats  (garden)  in  parts,  packed 


Chairs,  railway  (iron  or  steel)  (see  Iron  or 
steel). 


Chalk  (in  the  rough),  for  agricultural, 
disinfecting,  and  smelting  purposes. . . 


Chalk,  ground.. 
*Chalk,  French. 
Charcoal 


Charubsor  locust  beans  (see  Locust  beans 
or  charubs). 


Cheese  (in  boxes,  cases,  and  casks). 
Chestnuts  (see  Fruit,  green). 

Chicory,  groimd 

Chicory,  root 

Chloride  of  iron  (see  Iron  liquor). 


Chloride  of  magnesium  (in  casks  and 
drums) 


Chloride  of  sulphur  (in  carboys). . 

Chocolate 

China  ware 

China  clay  (see  Clay). 

China-stone 

Chrome  alum,  for  sizing  purposes. 
Chrome  ore  (see  Ores). 


3  0 

2  4 

2  0 

1  6 


1    0 
3    0 


2  0 
1  10 

1  6 

3  0 

2  0 
2    3 

0  6 

1  6 


2  5 

3  6 


2    5 

1  10 


4  10 
3    8 


4  0 

5  10 


1    3 
1  10 

3  0 

4  6 
3    6 

3    0 

1  10 


1  0 
1  3 
4  0 
1  10 


3  0 
2  5 

2  3 

4  6 

3  0 
3  0 

1  3 

2  3 


8    0 
6    0 


2  0 

3  0 

4  0 

6    0 

5  10 

4    0 
3    0 


1  6 

2  0 
6  0 

3  0 


5  0 

4  0 

3  0 

6  0 

5  0 
5  0 

2  0 

3  0 


1    3 
1    6 


2    6 
2    0 


1  0 

1  0 

1  0 

2  6 
2  6 

1  6 

1  6 


1    0 

1    0 

1    0 

1    3 

1    6 

1    6 

1    6 

1    3 

1    6 

2    0 

3    0 

0  10 

1    0 

Cider  (as  ale). 

Cigars  and  cigarettes 

Cinders  (tap  or  furnace),  for  lots  of  100 
tons  and  upward  at  a  lime 

Citron  peel  (in  brine)  (see  Peel). 

Clay  base 

Clay  figures  (in  cases) 

Clay: 

Black,  blue,  cutty,  Cambrian,  fire, 
pipe,  and  common  clay 

China  clay 

Clocks 

Clogs  (as  drapery,  heavy). 

Clog  and  last  blocks  (rough) 

*Cloth,  brattice  (see  Brattice  cloth). 

Clothes  pegs 

Cloth  wrapping  (old)  from  rolls  of  tobacco 

*Cloves 

Cobalt 

♦Cobalt  ore 

Coal  (cargo  or  bunkering)  (see  coal  sched- 
ule)  

Cocoa 

Cocoa  (or  coker)  nuts  (see  Fruit,  green). 

Cochineal 

Coffee 

Coir  rope  and  coir  junk 

Coke  (e.  0.  h.  p.) 

Coke  made  from  pitch  and  petroleum — 

Coke  (granulated  or  metallurgical)  in 
bags 

Coloritan 

Colors  and  paints  (pigments) 

Colors,  earth 

Composition  boards,  I.  e.,  strips  of  wood 
secured  between  strong  cardboard 
(packed  in  case) 

Composition  rollers,  old,  and  to  be  broken 
up 

Conduits  (earthenware) 

Confectionery 

Copper  ingots 

Copper  sheets 

Copper  wire,  insuJated 

Copper  wire  (in  cases) 

Copper  ore  (see  Ores). 

Copper  barilla  and  regulus 


3  6 

0  6 

1  0 

3  0 

0  G 

0  6 

3  6 


2  0 
4  0 
2  10 
2     1 

0    4 

2  0 

3  6 
2  0 
2  0 
0  4 
0  9 

0  9 
2    6 


1  6 

1  8 

2  0 
2  3 

2  0 

3  6 
2  3 


4  10 
0    6 


1    3 

4  10 


0  n 

1  3 


4    3 

2  U 

0     4 

3  0 

4  10 
3  0 
3    0 

0  4 

1  0 

1  0 
3  9 

2  5 
2  3 


3  0 

3  0 

3  0 

5  3 

3  0 


2  0 

8  0 

1  0 

2  0 

8  0 


5     0 
4    0 


5  0 

5  0 

0  0 

1  6 

1  0 

5  0 

4  0 

3  0 


3  0 

4  0 

5  0 
5  0 
5  0 


2  0 

1  3 

2  0 
1  3 
1  0 


1  6 
1  0 
1     0 


2  0 

2  0 

1  ti 

1  1 

1  5 

1  C 

1  3 


PANAMA  CANAL  TRAFFIC   AND  TOLLS. 

Merchandise  and  minerals  (per  ton  of  2,240  pounds  gross) — Continued. 


441 


Quay  porterage 
rate  (see  p.  454). 


Quay  porterage 
rate  (see  p.  454). 


Copper,  sulphate  of  (see  Sulphates). 

Copper  oxide  or  copper  scale 

Copperas  (e.  o.  h.  p.) 

Copperas,  green  (in  bulk) 

Copperas,  green  (packed) 

Copperas,  waste 

Copra 

Coquilla  nuts 

Core  compound  or  core  gum 

Com  (see  Grain). 

*Com  flour  (patent) 

Corks  and  cork  bungs 

Corkwood 

♦Cork  waste 

Corozo  (or  ivory)  nuts 

Corset  steels  (in  eases) 

*Corundum  ore  (see  Ores). 

Corundum  (as  emery). 

Cottolene  (a  substitute  for  lard)  (as  lard) 

Cotton  and  linen  thread  (see  Thread). 

♦Cotton  and  linen  goods  (in  bales,  boxes, 
cases,  packs,  or  trusses)  (e.  o.  h.  p. ) 

Cotton  seed  in  bags  (for  oil  crushing)  (see 
Seeds,  cotton). 

♦Cotton,  raw,  (in  press-packed  bales)  (see 
cotton  schedule) 


0  10 

1  4 

0  10 

1  S 

2  0 

1  3 

2  6 
2     10 

2  4 

2  4 

2  0 

2  G 


Cotton  thread  (see  Thread). 
Cotton  warps  (see  Warps). 
Cotton  yams  (see  Yams). 

Cotton  waste 

Crayons  (in  cases)  (as  stationery). 

Cream  of  tartar 

Creosote  (packed) 

Creosote  (in  bulk) 

Creosote  oil  (see  Oil). 

Creosote  salts 


2    4 
1     0 


Crucibles,  plumbago  (in  packages  under 
9cwt.) 


Crucibles,  plumbago  (in  packages  over  9 
cwt.) 


Crude  soap    glycerin,  or    concentrated 

soap  lyes  (see'Soap  lyes,  concentrated). 


Crude  tar  salts,  or  refuse  from  gas  tar  dis- 
tilling (see  Tar  salts). 


♦Currants  (see  Fruit,  dried). 
Curtains,  lace 


2  5 
1  3 
1  10 

1  3 

2  5 

3  0 
1  10 

3  2 

4  3 
3  6 
3  6 
3  0 
3  9 


3    6 
1    3 


1    3 

3    0 
3    0 


4  0 

4  0 

2  0 

3  0 

2  0 

4  0 

5  0 

3  0 


5  10 
5  10 


1     0 

1    0 

0  10 

0  10 

1    0 

0  10 

1    3 

1    9 

2    0 

1    0 

1    0 

2    6 

1    6 

2    3 

1    3 

2    0 

1    5 

1    3 

2    0         10 

i 
1    6 


3    0         5    0        2    6 


1  0 

2  0 
1    6 


Cutlery 

Cutch 

Cycles,  motor  (see  Motors). 
Dates  (see  Fruit,  dried). 
Dextrine,  or  British  gum  (in  bags) . 
Desks  (as  furniture). 

Divi-divi 

Djetoetoeng 


Dowels,   American   birchwood  in   the 
rough 


Drain  pipes,  glazed  (see  Pipes,  drain). 


Draining  pipes  and  tiles,  common,  for 
agricultural  draining 


Drapery,  heavy  (as  per  general  railway 
classification)  (e.  o.  h.  p.) 


Drags    (in  boxes,    casks, 
hampers,  or  crates) 


Drysalteries  (e.  o.  h.  p.)  (as  drugs). 
Dunnage  mats  (in  bimdles) 

Duimage  wood  (see  wood  goods  schedule) 

Dye  extracts  and  dyes  (irrespective  of 
how  packed)  (e.  o.  h..p.) 

Dyewoods  (in  the  rough) 

Dyewoods  (in  bags) 

Dynamos  (in  cases) 

Earth,  black  (in  bags) 

Earth,  infusorial  (see  Infusorial  earth). 

Earthenware  (in  casks,  crates,  or  cases) 
(e.  0.  h.  p.) 

Earthenware  conduits  (see  Conduits). 

♦Eggs  (in  boxes,  cases,  or  crates) 

Eggs  (liquid),  in  tins  and  cases  (as  eggs). 

Electrical  accumulators 


Electrical  machines  and  machinery  (other 
than  accumulators),  packed  or  un- 
packed (e.  o.  h.  p.) 


Electric  meters 

Electric  wire  casings  (wood). 

Emery  cloth  or  paper 

Emery  and  emery  dust 

Emery  stone 

Emery  wheels  and  rollers 


Empties — cases,  casks,  crates,  hampers, 
and  other  empties  (e.  o.  h.  p. ) 


Empties  (returned)  (e.  o.  h.  p.). 
Empty  jam  glasses,  packed 


♦Engines  and  tenders,  locomotive  (by 
special  arrangement) 


2  0 

2  0 

1  0 

2  0 
2  4 


2  6 

1  5 

1  6 

1  7 


3  0 
2  0 
2    0 


2    0 
0  10 


1  10 
3    0 


1  3 

2  5 

3  6 

3    0 
1    0 

3    9 

1  10 

2  3 


2  5 
4    6 

3  0 
3    0 

2  5 
1  10 

3  0 

3    0 

1  3 

2  5 


3    0 
5    0 


2    0 

4  0 

5  10 


5  0 

3  0 

3  9 

4  0 
3  0 


4  0 
6  0 

5  0 
5  0 

4  0 
3  0 

5  0 


4  0 

5  0 


2    6 
1    3 


1    6 

1     6 


1    6 
2      6 


2  6 

1  6 

2  6 

2  0 

2  0 

2  6 

1  3 

1  0 

1  0 

1  6 

2  6 
2  6 
2  6 


442 


PAN.UIA   CANAL  TRAFFIC   AXD   TOLLS. 
Merchandise  and  minerals  (per  ton  of  2,240  pounds  gross) — Continued. 


Epsom  salts  (as  sulphate  of  magnesia). 

Esparto  grass  (loose) 

Esparto  grass  (in  press-packed  bales) . . 

Extracts  of  meat 

Extracts  for  tanners'  use  (e.  o.  h.  p.)... 


Farina  (not  calcined) 

Feathers  (in  bags) 

Feldspar,  unground  (m  bulk) 0    6 

Feldspar,  groimd  (packed) 1    0  , 

Felt,  for  roofing 

Felt  hat  bodies 

Ferrochrome  and  ferrosilicon  (in  bulk) . . . 

Ferrochrome  and  ferrosilicon  (packed) . . 

Ferromanganese  (in  bulk) 

Ferromanganese  (packed) 

Ferrotimgsten  (in  cases) 

Ferrozone 

Fibers  (press-packed)  (e.  o.  h.  p.) 

Fibers  (not  press-packed)  (e.  o.  h.  p.) 

Fiber  roving  cans  (parts  of  machines)  (as 
machinery). 

Figs  (see  Fruit,  dried). 

Filters 

Fire  bricks  (see  Bricks). 

Fire  clay  (see  Clay). 

Fire  extinguishers  (in  cases) 

Fish: 

Cod,  dried 

Fresh 

Herrings,  red 

Fish  glue  (as  glue). 

Flagstones  (paving) 0    9 

Flaked  wheat  (see  Vheat,  flaked). 

Flavine  (as  dye  extracts  and  dyes). 

Flax  (in  bales) 1 

Flints  (loose) 0    6 

Flints  (pulverized) '      1    0 

Floorcloth  (including  oilcloth,  boulini- 
kon,  kamptulicon.  and  linoleum) '      2    0 


♦Flooring  blocks  and  boards,  wood  (par- 
quetry ) 


Flooring  boards  (wood),  maple,  etc.  (see 
wood  goods  schedule). 


2  6 

1  10 

3  8 
1  10 

4  6 
1  10 

5  3 
1    0 

1  6 

2  5 
4    0 

1  6 

2  3 

0  11 

1  10 
4  6 
1    9 


2  5 
1  0 
1    6 


4  2 

3  0 

6  0 

3  0 

6  0 

3  0 
8  0 

1  8 

2  0 

4  0 
6  0 

2  0 

3  0 

1  6 

3  0 
6  0 

2  6 

4  0 
4  0 


4  0 
6  0 
4    0 


4    0 

1  8 

2  0 


Quay  porterage 
rate'(seep.454). 


Packed.    Bulk. 


1  3 

1  6 

1  4 

2  6 

1  0 

2  6 


1    0 

1  6 

2  6 


1  0 

1  0 

1  0 

1  1 


2  0 
1  6 
1    6 


1  0 

'2   0 

2  0 


s.     d. 

2    6 


Flour  when  for  export  by  steamer  direct 
from  Manchester  to  places  outside  the 
River  Mersey 


Flower  of  sulphur  (see  Sulphur,  manu- 
factured). 

FKUIT. 

Dried: 

Almonds  (in  bags  or  barrels) 

Almonds  (in  boxes  or  half  barrels). . 

.\pples 

Apricots 

*Currants  (in  cases) 

♦Currants  (in  smaller  packages) 

♦Currants  (in  casks  or  barrels) 

Dates  (in  bags,  etc.) 

Figs  (in  cases,  mats,  bags,  etc.) 

Figs  (in  casks  or  barrels) 

Plums,  dried  or  preserved  (in  boxes) 

Raisins 

Green: 

Apples,  in  boxes  or  baskets  not  ex- 
ceeding 56  pounds  each 


Apples,  in  half  barrels,  over  56  pounds 
and  not  exceeding  84  pounds  each. . 


Apples,  in  barrelsnot  exceeding  1  cvrt 
2  qrs.  14  lbs.  each 


-A-pples  in  barrels  of  greater  weight. 

Apples  (e.  o.  h.  p.) 

Bananas 

Cranberries 


Fruits  in  own  juice  or  fruits  tinned 
of  all  kinds  (in  boxes,  cases,  or 
casks) 


Grapes,  in  barrels.. 


In  boxes  or  baskets  not  exceeding 
28  pounds  each 


Exceeding  28  pounds  and  not 
exceeding  84  pounds  each 


Exceeding  84  pounds  each . 
Lemons  (in  cases) 


Mandarins,  in  packages  not  exceed- 
ing 28  pounds  (per  package)^ 


Exceeding  28  pounds  and  not 
exceeding  56  pounds  (per  pack- 


2  4 

2  4 

1  8 

2  0 
2  6 
2  6 
2  6 
2  0 
2  0 
2  0 
2  0 
2  6 


1  8 

2  0 
2    0 


Exceeding 56  pounds  and  not  ex- 
ceeding 112  pounds  (per  pack- 
age)  


Exceeding  112  pounds  (per  pack- 
age)  


3  6 

3  6 

2  5 

3  0 
3  6 
3  6 
3  6 
3  2 
3  0 
3  0 
3  0 
3  6 


3    0 
3    0 


30  3 
30  4 
4    0 


Quay  porterage 
rate"(seep.454). 


0    2 

0    4 


2    0 

1    6 

1    6 

2    0 

2    3 

1    4J 

2    0 

2    3 

1    3    

1    6    

2    3 

2    6 

1    9 

1    3 
1    3 

........ 

1    6 

2    0 

1    6 

1    3 

2    6 

1    9 

1    3 

1    3 

2    6 

1    9 

1    6 

1    3 

I  Per  box  or  basket. 


'  Per  half  barrel. 


PANAMA  CANAL  TKAFFIC  AND   TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


443 


FRUIT— continued. 
Green— Continued. 

Melons  (in  cases) 

Nuts: 

Chestnuts 

Colier  or  cocoa  (in  bags) . 

Colier  (in  bulk) 

Peanuts  (in  bags) 

Walnuts 

Onions  (in  cases) 


Onions  (in  bags  not  exceeding  112 
pounds  eacli) 


Oranges  (in  cases). 


Pears  in  boxes  or  baskets  not  exceed- 
ing 28  pounds  each 


Exceeding  28  pounds  and  not 
exceeding  84  pounds  each 


Exceeding  84  pounds  each . 
Pineapples  (not  hothouse) 


Pomegranates  (in  packages)  not  ex- 
ceeding 28  pounds  each 


Exceeding  84  pounds  each . 


Tomatoes,  in  packages  not  exceeding 
28  pounds  each 


E-xceeding  28  pounds  and  not  ex- 
ceeding 84  pounds  each 


Exceeding  84  pounds  each 

Force  (in  cases) 

Fuller's  earth 

Furmentine  (in  bags)  (as  farina). 

Furniture  (including  office  furniture  fit- 
ted up) 


Furniture  stock,  or  knocked  down  goods, 
i.  e. ,  furniture  in  parts,  in  the  rough  for 
making  up 


Furniture  Tans  (empty) 

Fustic  liquor  (in  casks) 

Galls  or  gall  nuts 

Galvanized  iron  (see  Iron  or  steel). 

Gambler  and  gambree 

Gas  meters  (see  Meters). 

Gas  piu-ifying  refuse  or  gas  lime 

Gas  water  or  tar  water 

Gelatine 


1    8 
1  10 

1  10 

2  0 
2    0 


2    4 
2    0 


1    3 
1    3 


2  4 

2  0 

2  0 

2  0 


0  6 

1  0 

2  4 


3    0 
3    0 


3    C 
3    0 


1  10 
1  10 


3    0 
3    0 


0  8 

1  3 
3    6 


4  0 
4  0 
4    0 


5  10 
5    0 


3    0 
3    0 


5  0 

5  0 

4  0 

5  0 


1  0 

2  0 
5  10 


1    3 

1    5 

1    6 

13    0 

1    3 

2    0 

1    3 

1  10 

1    6 

1    3 

2    6 

1    9 

1    3 

1    6 

2    6 

1    9 

1    3 

2    6 

1    9 

1    3 

1     9 

1    0 

2    G 

1  10 

2    0 

1    0 

2    0 

1     0 

1    0 

1    0 



1    6 

Germ  (of  grain)  (as  grain). 

*Ginger...' 

Ginger,  presers-ed 


Girders  and  girder  bars,  iron  and  steel 
(see  Iron  or  steel). 


Glass  (e.o.h.p.) 

Glass  crushed  or  powdered . 


Glass  and  glassware  (common),  window, 
flint,  and  molded,  including  bottles 
and  bottle  stoppers,  also  plate  glass, 
both  "rough"  and  "not  silvered" 


Glass  refuse  or  waste  (ground) 

Glass  sand  (see  Sand). 

Glass  siphons  (mineral  water) 

Glauber  salts  (as  sulphate  of  soda). 


Glucose  or  grape  sugar  (see  Special  circu- 
lar): 


3    0 
2  10 


In  casks 

In  bags 

Other  packages. 


Glycerine: 

Incases 

In  carboys 

In  casks  or  iron  drums. , 


1  10 

1  5 

2  g 
2  8 
2    3 


Crude  soap,  in  casks  or  iron  drums 
(see  Soap  lyes,  concentrated). 

Glyco  metal  (as  antifriction  metal). 

Grain— Barley,  beans,  buckwheat,  dari, 
dills,  Indian  corn,  maize  (e.o.h.p.), 
oats,  peas,  rye,  and  wheat  (see  grain 
schedule) 


Grain  oflal,  when  for  export  by  steamer — 
direct  from  Manchester  to  places  out- 
side the  River  Mersey 


Granite  (crushed  or  in  chippings) 

Granite  (in  blocks,  rough  or  imdressed). . 

Granite  (polished  or  dressed,  or  partly 
dressed)  in  blocks  or  slabs,  exceeding 
2  inches  in  thickness 


Grape  nuts 

Grapes  (see  Fruit,  green). 

Grass  seed  cleanings  (not  grass  seed). 

Gravel 

Grease  (in  casks) 

Greaves 

1,000. 


0    6 
0  10 


2    0 
1    3 


1    3 
0    6 


4    0 
4    3 


2    5 
1    6 


2  5 
1  10 

3  S 
3  8 
3    0 


3    0 
1  10 

1  10 
0    9 

2  6 
2    5 


0    0 
7    0 


6    0 
3    0 


4    0 
2    6 


4  0 
3  0 

6  0 

0  0 

5  0 


1    0 

1  0 

2  0 


5  0 

3  0 

3  0 
1  0 

4  0 
•4  0 


Quay  porterage 
rate  (see  p.  454). 


2    0 
1    6 


2    6 
1    0 


2    6 
1    0 


1    3 

1    0 


2    C 
1    3 


2    6 
1    9 


1    0 

1    0  I 


0  7 

1  3 


444 


PANAMA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  (per  ton  of  3,340  pounds  gross) — Continued. 


Quay  porterage 
rate  (see  p.  454). 


Green  copperas  (see  Copperas). 

Grits  (brewers'  and  com  meal),  in  bags. . 

Grit  in  bags  for  sawing  stone 

Groats  (in  sacks) 

Guano  (see  Manure,  packed). 

Gums 

Guns  (not  macbine),  in  cases 

Guttarpercha  goods  (manufactured)  (as 
india-rubber  goods). 

Gypsum 

Hair— Hog's,  horse,  camel,  or  co'w  (press- 
packed)  

Hams  (see  Bacon). 

Handles,  wood  and  bone 

♦Handles,  iron 

Hardening  powder 

Hardware  (as  per  general  railway  classi- 
fication)   

*Haricot  beans 

Hats— Felt,  not  soft  (in  cases  or  boxes) . . 

Hats,  soft  (in  boxes  or  cases) 

Hatters'  wool  (as  wool,  raw). 

Hay,  press  packed 

Hay,  not  press  packed 

Hay,  loose 

Heath  for  brushes  (press  packed) 

Heath  for  brushes  (not  press  packed) 

Heavy  drapery  (see  Drapery,  heavy). 

Hemp  (in  bales) 

Herbs  (dried): 

Press  packed 

Not  press  packed 

Hessians  (see  Jute  goods). 

Hides,  salted  or  dry  (in  bales  or  bundles). 

Hides,  dry  (loose) 

Hide  cuttings  (in  bales) 

"  Ho  "  (in  cases) .  ,. 

Hollow  ware  (as  hardware). 

♦Honey 

Hoofs  of  cattle 

Hoops,  wooden 

*Hops 

Horns  and  horn  tips 

1  By  special  arrangement. 

!  The  quay  porterage  charge  on  these 


1    3 
1    0 

1  3 

2  0 

3  6 

0  10 
2    0 


2  4 

2  0 

2  6 

2  6 

1  3 

1  3 

1  3 

2  0 
2  0 


2     4 
2     4 


3     0 
2    0 


3     0 
2    0 


1  10 
1  9 
1  10 

3     0 

5     3 

1  3 
3     0 

2  .5 

2  10 

3  9 

3     0 

2  6 

3  8 


1  6 

2  5 
2    5 


3     6 
3     6 


2    5 
2    5 


4     4 
2     3 


4     5 
2    6 


3  0 

2  6 

3  0 

6  0 

7  0 

2  0 

5  0 

4  0 

4  0 

5  0 

5  0 
4  0 

6  0 
6  0 

2  fi 

2  6 

2  6 

4  0 

4  0 


5  10 

6  10 

4  0 

4  0 

4  0 

3  0 

6  0 

3  9 

4  0 
()  0 
4  0 


1  0 

1  0 

1  3 

1  6 

2  0 

1  0 

1  3 

1  6 

1  3 

1  0 

1  6 

1  3 

3  6 
3  0 


1  6 

2  6 


2    0 
2    6 


1    3 
1    9 


1  6 

2  6 
2    6 


1     4J 

1  10 

2  6 


Hurdles,  and  standards  for  (iron  or  steel) 
(see  Iron  or  steel). 


Hydrate  of  alumina  (see  Bauxite), 


India  rubber,  waste,  in  bags,  and  re- 
claimed scrap  rubber,  in  bags 


India  rubber,  raw 

Indian  corn  (see  Grain). 

Indigo  (as  dye  extract  and  dyes). 

Indigo  paste  (as  dye  extracts  and  dyes). 


Infusorial  earth,  manufactured  or-refined. 
Ingots  (iron  or  steel)  (see  Iron  or  steel). 
Ink  (printer's) 


Ink,  writing  (in  boxes,  casks,  crates,  or 


Instruments,  musical  (incases).. 

Iron  ore  (see  Ores). 

Iron  ore  briquets  (as  Iron  ore). 

Iron  pyrites  (see  Ores). 

Iron  or  steel: 

Anchors 

Angle  bars,  plates,  or  sheets. 


Beams,  bearers,  and  bmders  (as  gird- 
ers)  


Billets,  blooms,  and  ingots,  foreign 

Billets,  not  foreign 

Boilers,  not  exceeding  30  feet  in  length 
Boiler,  exceeding  30  feet 


Boiler   fittings,   not  accompanying 
boiler 


Cannon  balls  and  shot  and  shells,  not 
charged 


♦Castings;    light,    in    boxes,    cases, 
crates,  casks,  or  hampers 

Chain  cables 

Cotton  tie  clips 


Cotton  bale  hoops,  old,  not  bona  fide 
scrap  iron 


'''Fireproof  sheets,  in  crates  2 

Forgings,  iron  or  steel,  in  the  rough  ' 

Galvanized  iron 

Girders  and  girder  bars 


1  3 

2  0 

2  0 

2  4 


0  9 

1  2 


2  0 

3  6 


1  5 

1  5 

1  5 

1  0 

0  7 

1  9 

2  0 


2  0 

1  5 

1  5 

1  6 

2  8 
1  5 
1  5 
1  5 


1  6 
3  0 

2  5 

3  6 


3  0 

4  10 


I  10 
1  10 

1  10 
1    3 

1  0 

2  6 

3  0 


2  10 
1  10 

1  10 

2  3 

3  0 
1  10 
1  10 
1  10 


2  6 
5  0 
4    0 


2  0 

3  0 


3  0 

3  0 

3  0 
2  0 
1  8 

4  0 


4  0 

3  0 

3  0 

3  0 

4  0 
3  0 


articles  is  subject  to  special  arrangement  when  of  unusual  length,  bulk,  or  weight,  or  of  exceptional  bulk  in  proportion  to  weight. 


PANAJVIA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


445 


Iron  or  steel — Continued. 

Hurdles,  and  standards  lor 

Nails 

Netting  (wire) 

Nuts  and  bolts 

Pig  iron  (see  pig  iron  schedule) . 


*Pipes  (rain  water),  cast  iron,  for 
spouting,  eaves- troughs,  or  eaves- 
channels  and  their  connections 


Puddled  bars 

Railway  chairs 

Railway  rails  (straight).. 


Railway  or  tramway  materials  other 
than  chairs  and  straight  rails 


*  Sanitary  castings 

Scrap  (heavy) 

Scrap  (Ught) 

Shot  (caimon) 

Shot,  steel  (small)  in  casks  or  bags 

Spiegel  iron  (English),  in  pigs  (as 
pig  iron) 


Spiegeleisen  (in  bulk),  (as  pig  iron) . 

Spiegeleiscn  (e.  o.  h.  p.) 

Springs,  railway  wagon 

Steel  (in  bars  and  bundles) 

Steel,  band  or  hoop 


Steel  bars  and  castiings  (in  eases) 
e.  0.  h.  p 


Steel  bars,  for  nut  and  bolt  making . 


Steel  sheet  bars. . 


Steel  poles  (cast). 


Tin  plates 

Wire  (In  coils)  and  wire  rods 

Wire  for  fencing  (barbed  or  plain) . . . 

Wire  for  fencing  (barbed  or  plain) 
when  for  export  by  steamer  direct 
from  Manchester  to  places  outside 
the  River  Mersey 


Wire  ropes 

Wrought-iron tubes  (not  packed) . 


Tolls  between  Eastham    Quay  porterage 
and—  rate  (see  p.  454). 


1  5 

2  8 


2  0 

0  10 

1  3 
1  5 

1  5 

2  8 
0  6 

0  6 

1  0 
1  9 


1  5 

2  0 
2  0 

1  5 

2  0 
1  5 

1  5 

1  5 


2  4 

1  5 

1  5 

1  5 


1  10 
1  10 
3  0 
1  10 
0  11 


2  10 
1  3 
1  9 
1  10 

1  10 

3  0 
0  11 

0  11 

1  3 

2  5 


1  10 

2  10 

3  0 

1  10 

2  10 
1  10 

1  10 
1  10 


3  0 
1  10 
1  10 
1  10 


3  0 
2  3 


Other  iron  and  steel,  in  Class  "C  of 
the  general  railway  classification. , 

'  Exclusive  of  weighing. 


3  0 

3  0 

4  4 
3  0 
1  fi 


4    0 
2    0 


3  0 

4  4 
1  6 

1  6 

2  0 
4  0 


3  0 

4  0 

5  0 

3  0 

4  0 
3  0 

3  0 

3  0 


5  0 

3  0 

3  0 

3  0 

2  6 
5  0 

3  0 


0  11 

1  6 
1    0 


1  0 

1  6 

1  0 

1  6 

1  6 

1  6 


1  6 

1  3 

2  0 
1  0 
1  0 
1  3 


2 

0 

2 

1 
1 
1 

1 

0 

fi 

2 

0 

1 
1 

n 

1 

0 

n 

1 

0  10 
0  10 


1    0 

(') 


Iron  liquor,  or  muriate  of  iron,  or  chloride 
of  iron  (in  casks  or  iron  drums) 


Ironstone. 


Istle,  for  brush  making 

Ivory 

Ivory,  vegetable 

Ivory  waste  or  dust 

Ivory  (or  corozo)  nuts  (see  Corozo  nuts). 

Jars  and  bottles  (earthenware  or  stone- 
ware)  


Joiners'  work  (common  wood),  headings 
and  moldings  (not  gilt,  lacquered,  or 
varnished),  doors  and  door  frames,  fit- 
tings and  fixtures  for  building  stair- 
cases, balusters,  and  handrails,  win- 
dow sashes  and  frames  and  shutters, 
panels,  drawers  (in  parts),  sanitary 
fittings,  and  trelliswork , 


Juice:  Currant,  lemon,    lime,   licorice, 
and  orange  (in  cases,  casks,  or  pipes) . . . 

Juniper  berries  (see  Berries). 

Junk  (old  rope) 

Jute 


Jute  goods,  including  cloth,  yams,  hes- 
sians,  bagging,  sacking,  and  carpeting. 


Kainit  (in  bulk) 

Kainit  (packed) 

Kamptulicon  (see  Floorcloth). 

Kartavert 

Kentledge  (as  pig  iron). 

Kieserite  (in  bulk) 

Kieserite  (packed) 


Lac.. 


Lacrosses  (in  cases). . . 

Lactarine 

Ladder  rungs  (wood). 

*Lampblack 

Lard: 


In  pails,  boxes,  tubs,  and  blocks  (not 
exceeding  84  pounds  each),  and  in 
half  barrels  and  firkins  fexceeding 
84  pounds  and  not  exceeding  130 
pounds  each) 


In  tierces  or   casks    (exceeding    400 
pounds  each) 


Lardine  and  cottolene  (as  lard). 
Last  blocks  (as  clog  blocks). 


Lavatory  fittings  (iron),  packed  (as  san- 
itary castings)  (see  Iron  or  Steel). 


2  0 

0  G 

2  0 

3  C 


2     4 
2     4 

1  5 

2  0 

2    0 

0  10 

1  5 


0  10 

1  5 

2  0 

3  G 

1  8 

2  0 
2  11 


2    0 
1     8 


4  10 
3    0 


2    5 
2    5 


3  0 
3    0 

1  10 

2  5 

2  5 
1  3 
1  10 


1    3 

1  10 
3  0 
5    3 

2  5 

3  0 

4  0 


3    0 

2    5 


4  0 

1  0 

4  0 

5  0 


4     0 
4     0 


5  0 

5  0 

3  0 

4  0 

4  0 

2  0 

3  0 


2  0 

3  0 
5  0 
7  0 

4  0 

5  0 

6  0 


5     0 
4    0 


Quay  porteragft 
rate  (seep.  454). 


1 

0 

0  10 

1 

2 

1 
6 

2 

0 

2 

0 

2 
1 

0 
0 

1    6 
1    0 


10 

(=1 

6 

[m 

0 

6 



3 
3 

0  10 

0 

2 

0 

0  10 

1 

0 

1 

6 

2 

1 
1 
1 

6 
3 
6 
3 

B  Casks  or  pipes. 


446 


PANAMA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


Lead,  old  or  scrap 

*  Lead,  red  and  white 

Lead,  pig 

*Lead,  sheet  or  piping 

Leather  belting 

Leather  boards  and  leatheroid 

Leather,  dressed,  unmanufactured, 
scrap 


Leaves,  palm 

Lemons  (see  Fruit,  green). 

Lemon  juice  (in  cases,  casks,  or  pipes) 
(see  Juice). 

Lemon,  orange,  and  citron  peel  (in  brine) 

Lentils  (in  sacks  or  bags) 

Lime 

Lime,  acetate  of 

Lime,  borate  of 

Lime,  gas  or  gas  purifying  refuse 

Lime  juice  (see  Juice). 

Lime,  metal  acid  of  (in  casks) 

Limestone  (in  bulk) 

Limestone  (poUshed  or  dressed) 


Linen  goods  (in  bales,  boxes,  cases,  packs 
or  trusses) 


Linen  thread  (see  Thread). 

Lmen  yams  (see  Yams). 

Linseed  (in  sacks   or  bags)  (see  Seeds, 
linseed). 

Linseed-oil  skimmings 

Litter  (moss  or  peat) 


Liquors,  mordant  (including  alum  liquoi 
dunging  liquor,  and  red  liquor) 


Liquor  (logwood) 

♦Licorice  root 

Licorice  juice  (see  Juice). 


♦Locomotive  engines  and  tenders  (see 
Engines). 

Locust  beans  or  charubs  (in  packages). . 

Locust  beans  or  charubs  (in  bulk) 

Locust  seed  or  kernels  (see  Seeds,  locust) . 

Logwood  extract,  wet  or  dry 

Logwood  tar  (see  Tar,  logwood). 

Logwood  liquor  (see  Liquor,  logwood). 

Looms  (in  cases)  and  loom  sides  and  rails, 
when  the  two  latter  are  sent  together. . 

*Looms,  complete  (not  packed) 

Luggage  or  baggage 


2  0 

3  0 


2  6 
2  0 


1  3 

0  10 

1  0 


2  0 
0  6 


1  G 
1  0 

1  10 
1  10 
.3  0 


1  3 
1  3 


1  10 

2  10 
2  10 


1  10 

2  9 

1  10 

2  8 

3  0 
1  10 

3  0 
3  0 


1  10 

0  ,s 


0  s 

1  10 


1  10 
1  10 


2  5 

3  9 

4  3 


3  0 

4  0 

3  0 

4  0 


3  0 
1  0 

4  0 
1  0 
3  0 


3  0 
2  0 

4  0 
4  0 
6  0 


3  0 
3  0 


4  0 

5  7 
7  0 


Quay  porterage 
rate  (see  p.  454). 


1    0 

1    0 

1    3 

1    0 

1    0 

1    3 

0  10 

2    0 

1    6 

Machinery  and  machines  (packed  or  un- 
packed), in  classes  1  and  2  of  the  general 
railway  classification 


Machinery,  electrical  (see  Electrical  ma- 
chmery). 


Magnesia  (carbonate  of),  for  manufactur- 
ing purposes 


Magnesia  (carbonate  of),  for  drug  pur- 
poses (as  drugs). 


Magnesite  ore  (see  Ores). 

Magnesite  ore  (calcined) 

Maize  (as  Indian  com). 

Maize  (flaked) 

Maize  meal  (packed) 

Maize  meal  (prepared)  cerealine. . . 

Malt 

Malta  Vita  (in  cases) 

Manganese  ore  (see  Ores). 
Manganiferous  iron  ore  (see  Ores). 
Manure  (packed),  viz: 

Blood  for  manure 

B.ones  for  manure 

Guano 

Nitrate  of  soda  for  manure 

Sulphate  of  ammonia 

.Artificial  manure 


Marble  slabs: 

*  In  cases,  not  e.xceeding  30  hundred- 
weight each 


*  When  roughly  sawn  and  cemented 

together,  and  not  exceeding  30 su- 
perficial feet  in  measurement  or  1 
ton  in  weight  per  single  package 

*  When  roughly  sa\vn  and  in  single 

slabs  from  ?  inch  to  2  inches  thick 
and  not  exceeding  30  hundred- 
weight each 


Marble  blocks  (rough): 


►Exceeding  30  hundredweight  but 
not  exceedmg  2  toils  each. . .  — 


Marble  (worked),  consisting  of  mural 
tablets,  headstones,  crosses,  monu- 
ments, chimney  pieces,  door  posts, 
steps,  clock  cases,  etc.,  in  cases,  not  ex- 
ceeding 30  hundredweight  each 


In  ca.ses,  exceeding  30  hundredweight 
but  not  exceeding  5  tons  each.. 


*  Marble  scantlings  (rough),  2  inches  and 
upward  in  thickness 


Tolls  between  Eastham    Quay  porterage 
and—  rate  (see  p.  454). 


s.     d. 
2    5 


1    3 

1  3 

2  0 


2  0 
2  0 
2    0 


1  10 

1  10 

2  9 
1  10 
1  10 


2  S 

2  8 

3  S 
3  S 
2  8 


3  0 

3  0 

4  0 
3  0 
3  0 


4  0 

4  0 

4  0 

6  0 

G  0 

4  0 


PANMIA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,340  pounds  ffross) — Continued. 


447 


Tolls  between  Eastham    Quay  porterage 
and—  I  rate  (see  p.  454). 


Quay  porterage 
rate  (see  p.  454). 


Marble  chips 

Marble  refuse  (in  bags). 


Marble  refuse  (in  bulk),  20-ton  lots  and 
upward 


Margarin  (as  butter). 

Mats,  skin 

Meal  (in  sacks  or  bags). 

Meat,  extract  of 

Meat,  fresh  and  frozen. 


Meat  preserves   (in  boxes,   cases,   and 
casks)  (see  Preserves). 


Metal  polish  (paste  or  powder) 

*  Meters,  gas  or  water 

Meters,  electric  (see  Electric  meters). 

*Mica  (e.  0.  h.  p.) 

Mica,  ground  from  sheet  mica  cuttings. . . 

Middlings  (as  meal). 

Middlings,  when  for  export  by  steamer 
direct  from  Manchester  to  places  out- 
side the  R  iver  Merse  v 


1  0 

2  10 

1  3 

3  0 

2  6 

2  6 

3  0 

3    4 
1    8 


Milk  (condensed)  in  casks,  boxes,  i 
Millboards 


Millboard  rollers  or  tubes  (for 
paper  on) 


binding 


Millet  (in  sacks  or  bags) 

Mineral  white 

Mistletoe 

Mohair  (in  bales) 

Molasses  for  human  consumption . 


Molasses  residuum  (used  in  the  manufac- 
.ture  of  cattle  food) _. 


Molasses  for  manufacturing  or  other  pur- 


Mordant  liquors  (including  alum  liciuor, 
dunging  liquor,  and  red  liquor)  (see 
Liquors,  mordant). 

Mother  Oats  (in  cases) 


Motors,  cars,  carriages,  and  cycles  im- 
charged  with  gas,  oil,  or  other  inflam- 
mable liquid  or  vapor 


*Moldings  (packed  in  boxes) . 


Miniate  of  ammonia  (see  Ammonia). 


Miniate  of  iron  or  iron  liquor  or  chloride 
of  iron  (in  casks  or  iron  drums) 


Muriate  of  potash  (see  Potash). 
Musical  instruments  (in  cases) 

1  See  special  circular. 

34998°— 12 30 


2    0 
1    5 

1    8 
1    3 

1  5 

2  10 
2    6 


1    6 
1    5 


4    0 
3    0 


1  10 
1  10 


3  S 

1  10 

4  6 
3     S 

3  9 

4  0 

4     2 

2  6 


2    5 

1  10 

2  5 
1  10 
1  10 
4    3 

3  9 


2    3 
1  10 


4  10 
4    0 


3     " 
3     0 


6    0 
6    0 


5  10 
4    2 


1  0 

4  0 

3  0 

4  0 
3  0 

3  0 
7  0 

5  0 

4  0 

3  0 

3  0 


2  6 
1  2 
1    6 


2    D 
2    6 


1    6 
1     1 


(') 

1  6 

2  0 
1  0 

1  0 

2  6 
1  6 
1  3 


1    3 
1    3 


2     0 


Mustard  (in  casks) 

Mjrrabolams 

Nails,  iron  and  steel  (see  Iron  or  steel). 

Naphthol 

Naphthol  salts 

Naphthol  bitm 

Naphtha  alpha 

Naphtha  soda 

Naphthionate 

Naphthylamine 

Naphthaline,  crude,  wet,  dry,  or  pressed 

Netting,  wire  (see  Iron  or  steel). 

Newspapers  (old),  when  for  export  by 
steamer  direct  from  Manchester  to 
places  outside  the  Eiver  Mersey 

Nickel  (in  casks) 

Nickel  ore  (see  Ores). 

Nightsoil 


Nitrite-nitrate  sodium  (by-product  from 
making  calcium  nitrate  for  manure) . . . 


Nuts — Chestnuts,  cocoa  (or  coker),  pea- 
nuts, and  walnuts  (see  Fruit,  green). 


Oakum 

Oatmeal  (in  bags) 

Oats  (e.  o.  h.  p.)  (see  Grain). 
Oats  (Mother)  (see  Mother  Oats). 
Oats  (Quaker)  (see  Quaker  Oats). 
Ocher 


Oils  (not  giving  off  inflammable  vapor  at 
less  than  73"  F.  when  tested  in  the 
manner  set  forth  in  the  Petroleum  act, 
1879,  and  otherwise  not  dangerous): 

In  tank  steamers 


In  packages,  cases,  casks,  or  iron 
drums  (except  as  below) 


♦Oil,  aniline 

Oil,  castor,  for  lubricating  ma- 
chinery, in  tins  packed  in 
wooden  cases 


Oil,  castor,  for  lubricating  ma- 
chinery, m  casks  or  iron  drums. 

Oil,  castor,  e.  o.  h.  p.  (in  boxes) . 

Oil,  coker  nut 

Oil,  cottonseed 

Oil,  creosote 

*Oil,  essential 

Oil,  fish  (in  barrels) 

Oil, lard 

<  In  packages  in  cases. 


2    6 
1    5 


0  6 

1  5 


2    0 
1    3 


1    5 

1  10 
3    0 


2  0 
1  10 
1  10 
1  5 
4  0 
1  10 
1  10 


0  8 

1  10 


3    0 
1  10 


1  10 

2  5 

3  6 


2  5 

3  0 
2  5 
2    5 

1  10 
5  10 

2  5 


1    0 
3    0 


5    0 
3    0 


1    3 
1    6 


21    0 
»1    3 


3  0 

4  0 

5  0 

4    0 

4  0 

5  0 
4  0 
4  0 

3  0 
8  0 

4  0 
4  0 

a  drums. 


448 


PANAMA  CANAL  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerals  per  ton  {of  2,i40  pounds  gross) — Continued. 


Quay  porterage 
rate'(seep.454). 


Quay  porterage 
rate (see  p.  454). 


Oils— Continued. 

In  packages,  etc.— Continued. 

*Oil^  neatsfoot  or  fish  (in  cases  or 
tins) 

Oil,   oleine    (in   casks   or   iron 
drums) 

Oil,  olive  (in  iron  drums  and 
casks) 

Oil,  olive  (e.  0.  h.  p.) 

Oil,  rosin 

*Oil,  solidified  (in  casks) 

Oil,  tar.  mineral  (in  casks  or  iron 
drums) 

*Oil,  toluidine 

Oil  cake 

Oilcloth  (see  Floorcloth). 

Oleine  (in  casks  or  iron  drums) 

Onions  (see  Fruit,  green). 

Opalite 

Oranges  (see  Fruit,  green). 

Orchilla  weed 

Ores: 

Antimony 

Bog  (for  gas  purifying) 

Clirome  (in  bulk) 

*Cobalt 

Copper 

♦Corundum  or  alundum  (in  bags) 

Iron  (in  bulk) 

Magnesite 

Manganese 

Manganilerous  iron 

*Nickel 

Purple  or  burnt  (in  bulk) 

Pyrites,  iron  (in  bulk) 

Pyrites,  sulphur  (in  bulk) 

Wolfram 

Zinc 

Osiers,  twigs,  and  willows 

Oysters  (in  barrels) 

Oyster  shells  (crushed),  in  bags 

Paints  and  colors  (pigments)  (see  Colors 
and  paints). 

Palmetto  grass,  hydraulic  or  steam  press 
packed 

Palm  leaves  (see  Leaves). 

*Palm  nuta  and  kernels 


2  0 
2  0 

1  10 

2  6 

1  0 

3  0 
1  6 


1  6 
0  9 

0  9 

2  1 

1  6 
1  9 
0  5 

0  9 

1  0 

1  0 

2  1 
0  5 
0  5 

0  10 

1  5 

0  10 

2  0 
2  0 

1  6 


3  0 

3  0 

2  5 

3  4 

1  10 
3  6 
1  10 


1  10 
1  0 

1  0 

2  11 

1  10 

2  G 

0  8 

1  0 
1  3 

1  3 

2  11 


1  10 
1  3 
3  0 
3  0 


5  0 

5  0 

4  0 

5  0 

3  0 

5  0 

3  0 


4  7 

3  0 

4  0 
1  0 

1  8 

2  0 
2  0 

4  7 
1  0 

1  0 

2  0 

3  0 

2  0 

5  0 
5  0 

3  0 


1  3 

1  0 

1  0 

1  0 

1  0 

1  6 

1  0 


1  0 
1  0 
1  0 


1  0 
1  0 


2  0 
1  3 


0  10 
0  10 
0  10 


0  10 
0  10 
0  10 

0  10 

1  0 
0  10 
0  10 
0  10 


Palmyra  fiber  (see  Fibers). 
Paper  hangings 


Paper  (m  bales,  bundles,  and  in    oils) 
and  wrappering  paper  (in  cases) 


Paper  (insulating)  in  cases •. . 

*Paper,  other  than  wrappering  (in  cases) 
Paper  bags,  printed  or  not 


2  4 
2  4 
1    S 


Paper,  waste  (including  old  newspapers), 
when  for  paper  making 


Paper,  waste  (including  old  newspapers), 
not  for  paper  making,  in  bales,  bun- 
dles, or  bags 


Paper,  waste  (old  newspapers),  when  for 
export  by  steamer  direct  from  Man- 
chester to  places  outside  the  River  Mer- 


Paper  cones  (see  Pulp-board  cones). 

Paper,  sand  (in  bundles) 

Paper-making  materials 

Paraffin  scale  or  wax 

Pastry  boards  (common  wood) 

Paving  flagstones 

Peanuts  (see  Fruit,  green). 

Pears  (see  Fruit,  green). 

Peas,  split  (in  sacks  or  bags) 

Peel,  candied 

Peel,  citron,  lemon,  and  orange  (in  brine) 

Petroleum  residuum  (in  casks) 

Petroleum  hard  oil  (asjelly,  petroleum). 

Petroleum  grease  or  jelly  (not  vaseline) 
(see  Jelly  or  grease,  petroleum). 

Petroleum  oil  (see  Oils). 

Phonolith  rock,  crushed,  for  bottle  mak- 


ing. 

Phosphate  of  lime  (e.  o.  h.  p.) 

Phosphate  of  lime,  precipitated 

Phosphate  rock,  imground 

Phosphate,  ground  (packed) 

Pianos  (see  Musical  instruments). 

Pickles  (m  boxes,  cases,  and  casks) 

Pig  iron  (see  Iron  or  steel). 

Pig  lead  (see  Lead). 

Pipes,  asphalt  (conduitsfor  electric  wires) . 

Pipes  and  tiles,  draining,  common  (for 
agricultural  draining) 


2  0 

1  5 

1  8 

2  0 

0  n 


2  0 
1  8 
1     8 


0  8 

1  3 


1    0 
1    0 


Pipes,  cast-iron  rain-water  (see  Iron  or 
steel). 


Pipes,  drain  (glazed). 


2  5 

3  6 
3  6 
2  5 


3    0 

1  10 

2  5 

3  0 
1     0 


1  10 
3     0 


0  11 

1  10 

2  3 


2    3 
1    3 


4    0 
3    0 


5  0 

3  0 

4  0 
4  0 
1  3 


3  0 
5  0 

4  0 
4  0 


1  0 

3  0 

3  9 

1  0 

2  0 


3    0 

2    0 


Pipes,  gas, -water,  air,  or  steam  (iron  or 
steel)  (see  Iron  or  steel). 


PANAMA  CANAL  TRAFFIC   AND  TOLLS. 

Merchandise  and  minerals  (per  ton  of  2,240  pounds  gross) — Continued. 


449 


Quay  porterage 
rate  (see  p.  454). 


Quay  porterase 
rate  "(seep.  464). 


Pitch,  coU-tar  (in  bulk) 

Pitch,  coal-tar  (packed) 

Pitch  (e.  o.  h.  p.) 

Plaster  of  Paris 

Plumbago  (as  black  lead). 

Polarite  for  purifying  sewage 

Pollards  or  sharps  (in  bags  or  sacks). 


Pollards  or  sharps  when  for  export  by 
steamer  direct  from  Manchester  to 
places  outside  the  River  Mersey 


Porter  (see  Ale). 
Potatoes  (e.  o.  h.  p.). . . 


Potash: 

♦Bichromate  of 

Muriate  of 

*Prussiate  and  chlorate  of . . . 

Sulphate  of 

Poultry,  dead 

Poultry  food  (in  bags  or  sacks) . 
Powder,  toilet 


Preserves — Fish,  fruit,  meat,  provisions, 
and  vegetables  (in  boxes,  cases,  or 
casks) 


Pulleys  and  pulley  blocks 

Pulp  boards  (see  Wood-pulp  boards). 

Pulp-board  cones  or  paper  cones,  in  crates. 

Pumice  gravel  for  use  in  making  con- 
crete slabs  (as  gravel). 

Pumice  stone 

Purple  ore  (see  Ores). 
Pyrites,  iron  (in  bulk)  (see  Ores). 
Pyrites,  sulphur  (in  bulk)  (see  Ores). 
PjTidine  (as  dye  extracts  and  dyes). 

Quails  (Uve) 

Quaker  Oats  (in  cases) 


Quartz,  powdered  or  crushed  (in  bags  and 
casks) 


Quartz,  rock,  in  bulk . 


Quebracho  extract,  solidified,  in  bags  (as 
extracts  for  tanners'  use,  e.  o.  b.  p.). 


Rabbits  (frozen). 

*Raflia 

Rags  (not  oily) . . . 


Rails  (railway)  iron  or  steel  (see  Iron 
or  steel). 


0  11 

1  6 
1  10 
1  10 

1  10 
1  10 


1  10 

2  6 


1    3 

4  3 
1  10 
3    6 


6    0 
1  10 

1    6 
1    0 

4    3 

3     4 


1  6 

2  0 

3  0 
3  0 

2  6 

3  0 


3  0 

4  0 


4    0 
3    0 


5    0 
4    0 


8  0 

3  0 

2  0 

1  8 


5    0 
4    0 


0 

10 

1    0 

1    0 

1    0 

1    0 

1    8 

1  0 

1  0 

1  0 

1  0 

1  0 

1  0 


1    6 
1     4 


2    0 
1    3 


Rattans  (see  Canes). 

Red  lead  (see  Lead,  red  and  white). 

Registers,  cash 

Rennet 

Resin 

Rice(e.  o.  h.  p.) 

Rice,  pufled 

Rice,  Quaker  (patent  food),  in  cases. ... . 

Road  repairing  materials  (undressed) . . . 

Roadoleum,  in  barrels 

Rock    spar,     in     lump     (see     "Spar, 
rock"). 

Rollers  (wringing  machine) 

Rope  (other  than  coir,  wire,  and  straw). . 

Rope,    coir    (see    Coir    rope    and    coir 
junk). 

Rope,  straw 

Rope,  wire 

Rope,  wood,  wool  core 

Rosin  (as  resin). 
Rosin  oil  (see  Oils). 


Rubber      tubing       (as      india-rubber 
goods). 

Sago  and  semolina 

yago  flour 

Salt,  common  (in  bulk  or  in  bags) 

Salt,  rock 

Salt,  cake 

Salt  (table),  packed  in  cases  or  bags 

Saltpeter 

Salts,  glauber  (as  sulphate  of  soda.) 


Sand,  asbestos  or  asbestic 

Sand,  glass  and  silver 

Sand  (e.  o.  h.  p.) 

Sardines  (see  Preserves). 

Sash  weights  (cast-iron)  when  for  export 
by  steamer  direct  from  Manchester  to 
places  outside  the  River  Mersey 

Scrap  iron  or  steel  (see  Iron  or  steel). 

Seeds,  agricuitin"al 

Seeds,  linseed  (in  sacks  or  bags) 


Seeds,  locust., 
ship's  charges  schedule. 


4  0 

2  6 

1  5 

1  3 

2  6 
1  3 

0  6 

1  3 


1  3 
0  6 
0  6 

0  10 

1  3 
1  8 


0  8 
0  8 
0  6 


2  0 
1  3 
1  3 


6  0 
3  9 
1  10 
1  10 
3  3 
1  10 

0  9 

1  10 


3  0 
3  0 
3  0 


2  5 
1  10 
0  S 

0  S 

1  3 
1  10 


0  11 
0  11 
0  9 


3  0 
1  10 
1  10 


3  0 

3  0 

4  9 
3  0 
1  0 

3  0 

4  0 
4  0 

4  0 

5  0 
5  0 


4  0 

3  0 

1  0 

1  0 

2  0 

3  0 

4  0 


5  0 
3  0 
3  0 


1  0 
1  0 


2  6 
1  0 


1  0 
1  0 


1  3 
1  1 




(') 

{') 

0  10 

1    0 

1 

6 

1    6 

1    0 

0  10 
0  10 
0  7 


450 


PANAMA  C'AN.IL  TEAFFIC  AND  TOLLS. 

Merchandise  and  minerals  {per  ton  of  2,240  pounds  gross) — Continued. 


Seeds,  for  crusliing  for  oil 

Seeds,  cotton,  for  oil  crushing; 

In  bags 

In  bulk 

*Sewing  machines  (fitted  up) 

Sewing  machines,  in  parts  (packed) . 
Shale  from  Swedish  ports 


Sharps  or  pollards   (in   bags  or  sacks) 
(see  Pollards  or  sharps) . 


Shellac 

Shells  (e.  o.  h.  p.)- 


Shoe  or  rubber  solution,  not  giving  off 
inflammable  vapor  at  less  than  73°  F  . . 

Shoes  (see  Boots). 

Shoe  pegs  (in  barrels) 

Shot: 

Lead 

Iron  (cannon)  (see  Iron  or  steel). 

Steel,  small  (in  casks  or  bags)  (see 
Iron  or  steel). 

Shredded  wheat  (see  Wheat,  shredded) 

Shudes  (in  sacks  or  bags) 

Sbudes  (in  press-packed  packages) 

Shumac 

Silica  refuse 


Silica  stone  (for  manufacture  of  emery 
paper) 


Silk  (raw) 

Silk  (manufactured)  — 
Silk  waste  (undressed) . 
Size 


Size,  gold  (in  casks  or  iron  drums) 

Size,  resin  (in  barrels) 

Skewers  (wooden),  common,  packed.. 

Skins,  sheep 

Slag,  unground  (in  bulk) 

Slag,  ground  (packed) 

Slate  beds  for  billiard  tables 

Slates,  common 

Slates,  writing 


Slippers.    (See  Boots). 

Soap  and  soap  powder 

Soap  lyes  (not  concentrated). 


Soap  lyes  f concentrated)  or  crude  soap 
glycerine 


1  3 

1  3 

2  10 
1  7 


2  0 
2  0 


1  3 

1  3 

1  8 

0  9 

1  0 
3  6 
3  6 

2  10 

1  8 

2  4 
1  5 
1  3 

1  10 
0  5 
0  9 

2  0 
0  5 
2  0 


1  0 
1  8 


1  10 

1  10 
3  9 

2  5 


3  0 
3  0 


1  10 

1  10 

2  6 
1  0 

1  6 

4 10 

4  10 

3  8 

2  5 

3  6 
1  10 

1  10 

2  5 

0  8 

1  0 

3  8 
0  8 
3  0 


2  5 
1  10 


3  0 

3  0 
5  7^ 

4  0 
1  0 

5  0 
5  0 


3  0 

3  0 

4  0 

1  8 

2  0 
8  0 
8  0 
6  0 

4  0 

5  10 

3  0 

3  0 

4  0 
1  0 
1  8 

6  0 
1  0 

5  0 


4  0 
3  0 


1  6 
1  3 


2 

3 

8 
4 
0 

0 
6 
0 
6 
3 
3 
0 
6 
6 

,      0 

6 

in 

0 
9 

0 
0 

0 
0 

3 

(■ 

(') 

2 

1 

1 

1 

Soapstone 

Soda,  bicarbonate  of  (in  casks)  . 
Soda,  bichromate  of  (in  casks) . 
Soda,  borate  of 


Soda,  «oda  ash,  caustic  soda,  and  soda 
crystals 


of,    for     manure   (see 


Soda,  nitrate  of  (e.  o.  h.  p.) 

Soda,  nitrate  of,  in  full  cargoes. 

Soda,  nitrite  of 

Soda,  sulphate  of 

Spar,  rock  (In  lump) 


Spar,  crushed  for  garden  walks,  concret- 
ing, etc.  (as  gravel). 


Spelter  (in  plates  or  ingots). 


♦Spelter  dross  (not  spelter),  25-ton  lots, 
when  for  export  by  steamer  direct  from 
Manchester  to  places  outside  the  River 
Mersey 


Spent  oxide  from  gas  purifiers 

Spiegel  iron,  in  pigs  (see  Iron  or  steel). 


Spindles,  old  (packed  in  cases  or  casks 
for  export) 


♦Spirits  (in  cases  or  casks) 

Splints  (wood)  for  matches  (see  Wood 
splint  s  for  matches). 


Starch,  in  casks,  cases,  boxes,  or  bags,  for 
domestic  purposes 


Starch,  in  casks  or  bags  for  manufactur- 
ing purposes 

Stationery 

Stavewood  (not  staves 

Staves,  oak  or  fir 

Stearine 


Steel,  in  bars  and  bundles  (see  Iron 

steel). 
Steel  sheets  (see  Iron  or  steel). 

Stone,  broken  (for  repairing  roads) . . , 


Stone  and  granite  sets  for  paving. 


Stone  in  the  rough,  building,  pitching, 
paving,  (e.  o.  h.  p.),  and  curb 

Stone,  china  (see  China  stone). 

Stone,  emery  (see  Emery  stone). 

Stone,  flag  (for  paving) 

schedule. 


Quay  porterage 
rate  (see  p.  454). 


Packed.    Bulk. 


1  5 
1  0 
1  10 
0  10 
0    9 


1  3 

2  0 
1  3 
I  5 


0    6 
0    6 


1  10 
1  10 


1    3 
1    0 


1  10 
3  0 
1  10 

1  10 


0    9 
0    9 


0    9         10         13 


4  0 
2  0 
1    6 


2    3 
1    0 


4    0 
6    0 


3  0 

5  0 

3  0 

3  0 

4  0 


1    0 
1    0 


PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Merchandise  and  minerals  (per  ton  of  2,240  pounds  gross) — Continued. 


451 


stones,  lithographic 

Stoves  (other  than  common),  cast  iron. . 

Stoves  (common),  cast 

♦Straw  (press-packed) 

Straw  boards 

Straw  envelopes 

Straw  rope  (see  Rope,  straw). 

Strontia  or  alkaline  earth 

Suet  Cota  (as  Lard) 

♦Sugar  (in  bags,  cases,  or  casks) 

♦Sugar,  in  loaves 

Sulphate  of  alumina 


Sulphate    of    ammonia    (see    manure, 
packed). 


Sulphate  of  copper 

Sulphate  of  iron  (as  Copperas,  green). 
Sulphate  of  magnesia 


Sulphate  of  manganese  (residue  of  after 
use) 


Sulphate  of  lead 

Sulphate  of  potash 

Sulphate  of  soda  (see  Soda,  sulphate  of). 

Sulphate  of  zinc  waste 

Sulphite  ore  (from  Australia) 


Sulphur  pyrites  (in  bulk)  (see  ores). 
Sulphur  (crude) 


Sulphur      (manufactured)       including 
flower  of  sulphur 


Swiss  food,  in  cases. 


Sirup  (not  fruit  sirup),  in  casks  or  in 
tins,  packed  in  cases 


Tallow 

Tamarinds 

Tannin 

Tapioca 

Tapioca  flour 

Tar  (coal)  in  casks 

Tar  (logwood)  in  casks. 


Tar  salts,  crude  or  refuse,  from  gas-tar 
distilling 


Tar  water  (see  Gas  water). 

Tarpaulins 

Tartar,  cream  of 


2  10 

2  8 

2  0 

1  2 

1  5 

1  9 

1  0 

2  0 
2  0 
2  6 


2    0 
1    3 

0  10 

1  3 


2    0 
2    4 


1  10 

2  5 

1  6 

3  0 

2  10 


1  10 

1  10 

2  5 

2  5 

3  0 
2  6 
2  5 
1  10 


3    0 
3    6 


6    0 
4    3 


2  0 

3  0 

2  0 

3  0 
2  0 


3  0 

3  0 

4  0 

4  0 

5  0 
4  0 
4  0 
3  0 

2  0 

3  0 


5    0 
5  10 


Quay  porterage 
rate  (see  p.  454). 


2    6 
2    0 


(') 
(') 
1    0 


1  0 

1  0 

1  0 

1  0 

1  0 


1  3 

1  9 

1  3 

1  0 

1  6 

1  4 

1  3 

1  0 

1  0 

1  6 


2    0 
1    3 


♦Tea 

Tenders,  locomotive  (see  Engines). 
Terra  japonica 


Thirds,  when  for  export  by  steamer  direct 
from  Manchester  to  places  outside  the 
River  Mersey 


Thread ,  cotton 

♦Thread,  linen 

Three-ply  boards  (see  boards,  ttireeply). 

Tiles,  common,  glazed  (in  cases) 


Tiles,  draining,  garden,  edging,  roofing, 
paving,  common 


Timber  (see  Wood  goods  schedule). 

Tin,  in  blocks,  cakes,  or  ingots 

Tin  plates,  iron  or  steel 

Tin  scrap,  in  press-packed  bundles. . . 
(as  hardware). 


Tobacco  leaf,  immanufactured,  in  hogs- 
heads, tierces,  cases,  or  bales 


Tobacco,  manufactured 

Tomatoes  (see  Fruit,  green). 

Toys 

Tram  cars  (complete) 


♦Tram  cars,  electric,  with  appurtenances 
in  parts  packed,  or  otherwise  protected. 


Tramway  bogies  or  underframes 

Tramway  lifeguards  (packed  in  cases). . 
Trass  (as  cement). 
Treacle  (as  molasses). 

Tripoli  powder  or  earth 

Triscuit  (in  cases) 


Turpentine,  crude  (in  casks)  not  giving 
otf  inflammable  vapor  at  less  than  Ti° 


Turpentine,  spirits  of  (in  casks  or  iron 
drums),  not  giving  off  inflammable 
vapor  at  less  than  73*  F 


Turmeric 

Turned  wood  (in  the  rough,  packed). 


1  See  special  circular. 


Tutty  powder  (see  Zinc  dust). 
Twigs  (see  Osiers). 

Twine 

Type  metal 

Type^vTiting  machines,  in  parts  (packed) 
Typewriting  machines,  fitted  (packed). 
Ultramarine  (as  paints  and  colors). 

2  By  special  arrangement. 


2    0 
2    0 


2    3 

1    5 

1  5 

2  3 

2  10 

2  10 
2    9 


2     0 
2    0 


1     8 
3    0 


2  5 

3  9 

2  3 
1    3 

3  0 
1  10 
1  10 

3  0 

4  3 

3  S 
3    2 

3  0 
1  10 


2    5 
1  10 


3  0 
3  0 
3    0 


2    5 
4    6 


1  0 
4  0 

4  0 

3  0 

2  0 

5  0 

3  0 

3  0 

5  0 

7  0 

6  0 
5  0 

4  0 

3  0 

4  0 


4    0 
3     0 


Quay  porterage 
rate (see  p.  454). 


4  0 

4  0 

6  0 

7  0 


2    6 

(') 


2    6 
2    6 


452 


PANMIA  VANM.  TRAFFIC   AND   TOLLS. 

Merchandise  and  minerah  {per  ton  of  3J40  pounds  gross) — Continued. 


Umber 

tlmbrella  sticks  (bamboo  in  the  rough) . . 

Undressed  materials  for  the  repair  of 
roads  (see  Road  repairing  material). 

Valonia 

Varnish,  black  (in  casks  or  iron  drums), 
e.  o.  h.  p.,  not  giving  off  intlammable 
vapor  at  less  than  73'  F 

Varnish  (in  casks  or  iron  dnmis)  not  giv- 
ing off  inflammable  vapor  at  less  than 
73°  F 

Vaseline  (in  casks  or  drums) 

Vaseline  (in  cases) 

Vegetable  ivory  (see  Ivory). 

Vegetables  in  brine  in  casks  (but  not  fruit 
in  brine) 

Veneer  wood  (common)  in  thin  sheets, 
packed  (for  lining  packing  cases) 

Verdigris  (in  casks) 

Vermicelli 

Vinegar  (in  casks) 

Walnuts  (see  Fruit,  green). 

Warps,  cotton 

Washing  boards 

Washing  and  wringing  machines  packed 
in  boxes  or  crates 

Washing  and  \\Tinging  machines  (e.  o. 
h.p.) 

Waste  salt,  in  bulk 

Waste  salt,  in  packages 

Waste  wool  (see  Wool  waste). 

Waterine  (phosphate  of  soda),  in  casks. . 

Water  meters  (see  Meters). 

♦Whalebone 

Wheat,  shredded  (in  cases) 

■yWieat,  flaked  (incases) 

Wheelbarrows: 

In  parts,  packed 

.  Complete 

White  lead  (see  Lead,  red  and  white). 

■Whiting  or  whitening 

Whiting,  refuse,  for  use  for  agricultural 
and  disinfecting  purposes 

Willows  (as  osiers). 

Wick,  cotton,  lamp  or  candle  (in  bales 
or  cases) 

♦Wines  (in  cases  or  casks) 

♦Wines,  British  (in  casks) 

Wire,  aluminum  (see  Aluminum  wire). 


1  0 

2  6 


2    0 

2  6 

3  0 


2    4 
2  10 


2    0 
2    4 


3    0 
0  10 


3  6 

1  3 

1  3 

2  0 
2  4 

1  0 
0  9 

2  0 

3  0 
2  6 


3    0 

3  9 

4  6 


1  10 
3  0 
3    S 

2  5 

2  4 

3  0 


4  6 
1  3 
1  10 


4  10 
1  10 
1  10 

3  0 
3     G 

1  3 
1     0 

3  0 

4  2 
3     6 


2    0 
5     0 


5     0 

5  0 

6  0 


3  0 

5  0 

6  0 

4  0 

4  0 

5  0 


6    0 

2  0 

3  0 


7    0 
3    0 

3  0 

4  0 

5  10 

2    0 
1     6 

4  0 

6  0 

5  0 


1  0 
1  6 
1    6 


1  6 

1  3 

1  6 

1  0 


2    0 
2    6 


1  10 
1  10 


1    0 
1    0 


2    6 
2     6 


Wire  (iron  or  steel,  in  coils);  wire  iron  (in 
rods  or  coils):  wire  ropes  (see  Iron  or 
Steel). 

Wolfram  ore  (see  Ores). 

Wood,  boxwood,  ebony,  cherrywood, 
iron  wood,  lancewood,  lignum-vitse, 
persimmon,  rosewood,  stainwood,  and 
other  furniture  or  fancy  woods  not  pro- 
vided for  in  the  separate  schedule  for 
'*  wood  goods" 

Wood  acid  (in  casks  or  carboys) 

Wood  battledores,  common  (see  Battle- 
dores). 

Wood  blind  rollers  and  cornice  poles  (in 
the  rough) 

Wood  blocks  (for  street  paving) 

Wood  fiber  (as  fibers). 

Wood-pulp  boards 

Wood  pulp  (dry) 

Wood  pulp,  wet  (containing  not  less  than 
50  per  cent  of  moisture) 

Wood  shavings  for  upholstering  pur- 
poses (in  pressed-packed  bales) 

Wood  splints  for  matches 

Wood  wheels,  in  the  rough  (unfinished) . . 

Woodware  and  woodwork 

Wood  wool  core  rope  (see  Rope). 

Wool,  raw 

Wool  waste 

♦Woolen  and  worsted  goods  (in  bales, 
boxes,  cases,  packs,  and  trusses) 

Woolen  and  worsted  yams  (see  Yams). 

Yams: 

Coir  and  tow- 
In  bunches,  dhoUs,  or  bundles. . 
In  bales  and  on  beams 

Cotton  (in  bales,  boxes,  cases,  packs, 
and  trusses) 

Jute  (see  Jute  goods). 

Linen,  woolen,  and  worsted  (in 
bales,  boxes,  cases,  packs,  and 
trusses) 

Yeast 

Yellow  metal  plates  and  sheathing 

Zinc,  carbonate  of 

♦Zinc  dross  (in  slabs) .,. 

Zinc  dust  or  tutty  powder 

Zinc  ingots 

Zinc  oxide 

Zinc  scrap 

Zinc  sheets  (in  casks) 

♦Zinc  skimmings 


1    5 
1  10 


2    0 
1    3 


2  0 
2  6 
1     5 


2     0 
2    6 


2    0 
2    0 


2  0 
2  10 
2  0 
1  G 
1  0 
1  6 
1  6 
1  6 
1  6 
1  6 
1    0 


B. 

s.     d. 

1  10 

2  5 

2  5 

1  10 

1  10 

1  10 

1  6 

3  0 

3  9 

1  10 

3  0 

3  0 

2  4 

3  0 

2  5 

2  0 

2  5 

2  5 

3  8 

3  0 

1  10 

1  5 

1  10 

1  10 

1  10 

1  10 

1  10 

1  5 

Quay  porterage 
rate  (see  p.  454). 


3  0 

4  0 


4    0 
3    0 


3    0 
3    0 


4  0 

5  0 

3  0 
5  0 

5  0 

4  0 


4    0 
4    0 


4  0 

6  0 

4  0 

3  0 

2  3 

3  0 
3  0 
3  0 
3  0 
3  0 
2  3 


1    6 
1    3 


1    6 
1    6 


1    6 

1    0 


1  5 

2  0 
1  10 
1  10 

1  6 
1    3 


1  6 

1  6 

1  5 

1  0 

1  0 

1  0 


1  0 

1  0 

1  0 

1  0 


PANAilA  CASAL  TKAFFIC   AND  TOLLS. 


453 


General  Schedule  of  Canal  Tolls  Applicable  to  Merchandise  and  Minera«ls  not  Provided  for  in 

THE  Foregoing  List. 

This  general  schedule  follows  the  Board  of  Trade  classification  of  merchandise  and  minerals  (c.  5832/1892), 
except  where  the  general  railway  classification  for  the  time  being  may  provide  for  articles  being  charged  for 
at  a  lower  class,  in  which  case  the  latter  will  be  adopted. 

A  copy  of  the  Board  of  Trade  classification  is  obtainable  in  Manchester  from  John  Heywood  (Ltd.),  and  a 
copy  of  the  general  railway  classification  from  an)'  railway  company  in  the  Kingdom,  price  Is.  in  each  case. 


Description  of  merchandise. 

Between  Eastham  and— 

Runcorn, 

per  ton 

(a). 

Latchford, 

per  ton 

(b). 

Manchester 

per  ton 

(c). 

Class  A 

«.    d.' 

0  6 

1  0 

1  6 

2  0 

2  6 

3  0 
3    C 

s.    d. 

0  9 

1  6 

2  3 

3  0 
3 

4  6 

5  3 

6  0 

5.    d. 

1  0 

2  0 

3  0 

4  0 

5  0 

6  0 

7  0 

8  0 

Class  B 

ClassC 

Class  1 

Class  2.. 

Class  3.. 

Class  4.. 

r:l!i.s«  .i 

Exiles  and  Regulations  Applying  to  Merchandise  and  Minerals  Discharged  or  Shipped  in  the  Man- 
chester Docks,  except  where  Otherwise  Stated. 

custody  of  and  regl^l-atioxs  with  regard  to  goods  while  lying  on  the  dock  quays  or  in  the  transit 

sheds. 

1.  All  goods  laid  down  on,  or  passing  over,  the  quays  of  the  docks  of  the  Ship  Canal  Co.,  or  deposited  in  the 
quay  sheds,  are  at  the  owner's  sole  risk  in  every  respect;  the  company  have  no  custody  of  such  goods,  and  will 
not  be  responsible  for  leakage,  loss  of  weight  or  measure,  or  for  damage  by  fire,  theft,  strikes,  combinations  of 
workmen,  weather,  deterioration  from  natural  causes,  acts  of  God,  the  King's  enemies,  or  otherwise  howsoever. 

2.  Goods  are  not  in  the  custody  of  the  canal  company  until  taken  possession  of  by  them  as  warehousemen, 
wharfingers,  or  railway  carriers,  but  when  the  company  have  sent  the  owner  of  goods  notice  that  tlie  goods  are 
taken  into  stock  by  them,  the  company  accept  the  usual  responsibility  for  their  custody  as  warehousemen  or 
wharfingers,  except  when  the  goods  are  l^'ing  on  the  quay  or  in  the  transit  shed  under  conditions  stated  in 
clause  6. 

3.  The  canal  compan^^'s  police  patrol  the  ilanchester  docks,  and  their  police  superintendent  will,  upon 
receipt  of  a  requisition  to  do  so,  place  a  special  watch  upon  merchandise  lying  in  the  transit  sheds  or  on  the 
quays,  for  which  service  a  charge  of  5s.  per  day  and  5s.  per  night  is  made,  with  a  minimum  charge  of  5s.  The 
service  of  watching  merchandise  will,  however,  only  be  undertaken  on  the  express  understanding  that  the  com- 
pany will  not  be  responsible  for,  and  that  no  liability  shall  attach  to  them  in  respect  of,  the  safe  custody  of  such 
merchandise. 

4.  The  importer  is  responsible  to  the  canal  company  for  the  canal  tolls  and  quay  charges  upon  his  goods, 
and  the  person  or  firm  in  whose  name  the  ship's  delivery  order  for  the  goods  is  made  out  is  held  by  the  company 
to  be  the  importer.  All  charges  due  upon  the  goods  must  be  paid  before  their  removal  from  the  docks.  lia 
cases  where  the  owners  or  agents  of  the  vessel  undertake  for  convenience  of  the  owners  of  goods  to  pay  the 
canal  toll  thereon,  they  must  also  pay  any  quay  porterage  that  may  be  incurred  on  such  goods. 

5.  The  canal  company  are  not  bound  to  notify  the  importer  when  the  goods  are  due  for  removal  from  the  quay, 
and  failure  on  their  part  to  do  so  will  not  prevent  their  taking  the  goods  into  warehouse  or  store  if  not  removed, 
nor  relieve  the  importer  from  liability  for  warehousing  or  storage  charges  and  rent  when  thus  incurred. 

6.  If  at  the  expiration  of  72  hours  after  landmg  the  goods  have  not  been  removed  from  the  quays  or  transit 
sheds,  the  canal  company  may  take  possession  of  them  as  warehousemen  or  wharfingers,  and  remove  them  to 


454  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

warehouse  or  storage  ground  to  the  order  and  at  the  risk  and  cost  of  the  importer.  If  the  company  allow  such 
goods  to  remam  on  the  quay  or  m  the  transit  shed,  the  warehousing  or  storage  rate  will  be  charged  in  lieu  of  the 
quay  porterage  rate,  and  the  goods  will  remain  on  the  quay  or  in  the  transit  shed  at  the  sole  risk  of  the  owner. 
If  removed  from  the  quay  to  warehouse  or  storage  ground,  the  warehousmg  or  storage  rate  wLU  be  payable  in 
addition  to  the  quay  porterage  rate;  and,  whether  lying  on  quay  or  placed  in  warehouse  or  store,  the  goods  will 
also  be  subject  to  rent  from  the  exphation  of  the  time  allowed  free  on  the  quay. 

7.  Wlien  importers  are  in  doubt  as  to  when  they  will  remove  the  traffic  from  the  docks,  they  should  give 
orders  to  warehouse  or  store  the  same  24  hours  before  sliip's  arrival  at  the  docks,  which  course  may  sometimes 
avoid  the  quay  porterage  charge  (see  clauses  headed  "warehousing  and  storage  charges"  on  p.  456). 

QUAY  PORTERAGE  CHARGES. 

Section  146  of  the  canal  company's  1885  act  provides  that  the  company  shall  have  the  exclusive  right  to 
supply  all  the  labor  required  for  loading  and  discharging  vessels,  and  the  handlmg  of  the  merchandise  within 
the  canal  or  docks,  and  that  the  company  may  charge  for  such  services  an  amount  equal  to  the  actual  cost  of 
labor — minimum  charge  as  for  four  hours  per  man  employed — and  a  proportionate  cost  of  the  wages  of  foremen 
and  of  office  expenses  and  material,  and  in  addition  a  sum  of  10  per  cent  on  such  amounts,  and  also  a  premium 
to  cover  liabilities  for  accidents  and  losses,  which  until  further  notice  will  be  after  the  rate  of  5  per  cent;  but  in 
order  that  fixed  rates  may  be  available,  the  schedule  on  pages  437-452  has  been  prepared. 

No  quay  porterage  charge  is  incurred  when  merchandise  is  discharged  from  or  to  ship  direct  to  or  from 
railway  wagon,  road  vehicle  (see  clause  below  re  road  vehicles),  or  barge  alongside,  and  weighing,  counting, 
sorting,  checking,  stowing,  or  unstowing  in  road  vehicle,  railway  wagon,  or  barge,  or  other  services  are  njat 
required,  except  in  the  case  of  dangerous  goods  discharged  to  ship  canal  wagons  and  hauled  to  a  place  of  safety 
on  the  dock  estate,  in  which  case  porterage  is  always  chargeable. 

The  company  do  not  guarantee  to  discharge  goods  direct  ex  ship  to  railway  wagon,  barge,  or  road  vehicle, 
but  will  endeavor  to  do  so  with  the  view  to  avoid  quay  porterage. 

Traffic  is  only  discharged  direct  to  road  vehicles  from  ship  or  received  from  road  vehicles  into  ship  direct 
when  the  canal  company  consider  the  work  of  the  ship  will  not  thereby  be  delayed,  and  subject  to  the  persons 
in  charge  of  the  vehicles  slinging  or  unslinging  and  stowing  or  unstowing  the  goods  in  their  vehicles  at  their  own 
risk,  and  on  condition  that,  if  the  company  assist  in  doing  such  work,  liability  for  any  accident  arising  therefrom 
to  workmen,  horses,  lurries,  or  other  vehicle,  or  damage  to  the  goods,  shall  not  under  any  circumstances  attach 
to  the  company. 

If  in  laudmg  traffic  from  or  delivering  to  road  vehicles  or  barges  to  or  from  the  dock  quays  or  transit  sheds 
the  canal  company  allow  their  servants  to  voluntarily  assist  in  the  slinging  or  unslinging  and  stowing  or  unstow- 
ing of  goods  Ln  the  road  vehicles  or  barges  in  order  to  facilitate  the  work,  liability  for  any  accident  arising 
therefrom  to  workmen,  horses,  lurries,  or  other  vehicle,  or  barges,  or  damage  to  the  goods,  shall  not  under  any 
circumstances  attach  to  the  company. 

The  canal  company  take  no  responsibility  whatsoever  with  respect  to  goods  discharged  overside  ship 
direct  to  barge,  road  vehicle,  or  to  ship  canal  railway  wagons  when  for  haulage  over  the  dock  estate  or  to  or 
from  and  over  the  TrafTord  Park  estate,  except  for  the  due  performance  of  any  service  they  maj^  undertake  by 
arrangement  in  connection  therewith.  The  responsibility  for  the  checking  of  cargo  loaded  or  chscharged  overside 
ship  direct  to  or  from  road  vehicles,  barges,  or  ship  canal  railway  wagons  for  haulage  over  the  dock  estate  or  to  or 
from  and  over  the  Trafford  Park  estate,  rests  entirely  with  the  shipowTiier  and  importer. 

The  importer  is  also  responsible  for  stowage  of  traffic  in  the  canal  company's  railway  wagons  when  for 
haulage  over  the  dock  estate  or  to  or  from  and  over  the  Trafford  Park  estate,  but  the  company  are  prepared  to 
undertake  any  or  all  of  the  services  mentioned  upon  requisition  and  payment  for  the  work  done. 

The  canal  company  will  not  be  responsible  for,  and  no  hability  shall  attach  to  them  in  consequence  of, 
delay  in  loading  off  or  otherwise  dealing  with  goods  from  or  to  the  quay,  transit  sheds,  or  vessels. 

The  quay  porterage  rate  upon  merchandise  not  of  unusual  length  or  bulk,  or  of  exceptional  bulk  in  propor- 
tion to  weight,  covers  the  undermentioned  services: 

For  articles  not  exceeding  30  hundredweight  per  lift:  Receiving  from  ship,  weighing  on  landing  or  dehvery, 
at  canal  company's  option,  such  goods  as  are  usually  weighed  '  (3  pence  per  ton  rebate  if  weigliing  not  per- 
formed), ordinary  marking,  sorting  to  manifest  marks,  stowing  on  the  quay,  furnishing  gross  weight  (on  apph- 

1  Some  of  the  articles  not  usually  weighed  are:  Butter  (in  casks  or  tubs),  flour,  farina,  com  flour,  pig  lead,  mineral  white,  and  starch. 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  455 

cation),  counting,  and  delivery  to  but  not  stowage  of  the  goods  in  road  vehicle,  railway  wagon,  or  barge  alongside, 
within  72  hours  from  the  time  of  landing.  All  goods  in  bulk,  incliuUng  goods  scheduled  as  m  bulk  coluinii  of 
quay  porterage  rates  on  pages  437-452  hereof  are  usually  weighed  over  cart  or  railway  weighbridge  on  delivery 
(1  penny  per  ton  rebate  allowed  from  scheduled  rate  if  weighing  not  performed).  For  rates,  see  schedule  on 
pages  437-452.  Detailed  weights  can  be  obtained  on  application  at  the  rate  of  Is.  per  100  weights.  Minimum 
charge,  3d.  per  weight  note. 

For  dehvery  to  craft  (but  not  stowage  therein),  when  not  berthed  alongside  where  the  goods  he,  an  addi- 
tional charge  of  6d.  per  ton  is  made. 

Articles  exceeding  30  hundredweight  per  lift,  or  when^of  unsual  length  or  bulk,  or  of  exceptional  bulk  in 
proportion  to  weight,  are  subject  to  special  rates.,  charges,  and  arrangements  for  handling  on  the  quay. 

Articles  to  be  lifted  exceeding  one  ton  per  lift  must  have  the  exact  weight  marked  thereon. 

Unpacked  or  insecurely  protected  maclunery  and  iron  castings  are  only  handled  at  the  ordinarj'  quay 
porterage  rates  at  o'wner's  risk.  If  at  canal  company's  risk,  50  per  cent  extra  will  be  charged.  Unless  the 
company  be  otherwise  instructed,  they  ■wall  be  handled  and  charged  for  at  owner's  risk. 

Extra  charges  will  be  made  for  opening  and  taring  (when  required  by  H.  M.  customs  or  consignees  of  goods), 
coopering  or  mending,  sampling,  collecting  loose,  classifying  damage,  lotting  for  sale,  and  labeling  (when  required 
by  consignee  of  goods.) 

OVERTIME. 

Overtime  is  charged  for  as  follows: 

On  ordinary  working  days  from  6  p.  m.  to  8  a.  m.,  and  on  Saturdays  from  5  p.  m.  to  10  p.  m.,  4id.  (timber 
5d.)  per  hour  per  man  in  addition  to  schedule  rates. 

After  10  p.  m.  on  Saturdays,  and  all  day  on  Sundays,  Christmas  Day,  Good  Friday,  and  bank  or  special 
hohdays,  9d.  (timber  lOd.)  per  hour  per  man  in  addition  to  schedule  rates. 

When  men  are  requisitioned  to  work  during  their  meal  hours,  the  overtime  rate  wiU  be  charged  for  such  hours, 
and  any  longer  period  the  men  may  continue  to  work  ^\'ithout  a  break. 

Requisitions  for  overtime  must  be  lodged  before  3  p.  m.  Mondays  to  Fridays,  and  on  Saturdays  before  12 
noon. 

RAILWAY    TRAFFIC    (iMPORTS). 

For  concHtions  and  other  matters  relating  to  traffic  forwarded  from  the  docks  by  the  canal  company  as 
railway  carriers,  see  pages  461,  462,  and  463. 

DANGEROUS    GOODS. 

Explosives  of  the  various  kinds  described  in  the  "special  classification  of  explosives  and  other  dangerous 
goods  by  merchandise  trams"  emboched  in  the  general  railway  classification  (with  the  single  exception  of  safety 
small-arm  cartridges)  are  not  allowed  to  pass  over  the  canal,  nor  are  any  of  the  inflammable  liquids  gi\'ing  off 
vapor  mflammable  at  less  than  73°  F.,  set  forth  in  the  same  special  classification. 

Other  dangerous  articles  but  of  a  less  dangerous  character  than  those  named  above,  which  from  time  to  time 
may  be  allowed  specially  to  be  imported  or  exported  by  means  of  the  canal,  must  not  be  unloaded  onto  the  dock 
quays,  but  must  be  discharged  or  shipped  tUrect  from  or  to  vessel,  to  or  from  barge,  road  vehicle,  or  railway 
wagon  alongside.  If  the  traffic  for  any  reason  can  not  be  discharged  or  sliipped  direct  from  or  to  vessel,  the 
canal  company  will  haul  same  to  a  place  of  safety  at  the  expense  of  the  o^\^ler  of  the  goods,  or  the  steamship 
owner  as  the  case  maj-  be,  and  at  his  risk  in  all  respects. 

In  the  case  of  inflammable  hquids  not  giving  ofl'  vapor  inflammable  at  less  than  73°  F.,  shippers  or  importers 
of  the  traffic  must  before  shipment  or  unloatUng  lodge  at  the  dock  office  a  declaration  to  this  effect. 

OBJECTIOXABLE    GOODS. 

Articles  which  ma}'  be  deemed  objectionable  by  the  canal  company,  and  through  contact  with  wliich  other 
goods  are  liable  to  be  damaged,  such  as  chemicals,  charcoal  dust,  soot,  etc.,  will  not  be  permitted  to  be  placed 
inside  the  transit  sheds  except  b}'  special  arrangement. 

TRANSSHIPMENT    CARGO. 

Transshipment  goods  are  hauled  m  railway  wagons  (or  barged  at  canal  company's  option)  on  the  conditions 
stated  in  the  company's  printed  haulage  requisition  form  from  alongside  ship  to  other  vessels  in  any  part  of  the 


456  P.AJN.UIA   CAXAL   TRAFFIC   AND   TOLLS. 

docks  at  a  charge  of  6d.  per  ton  (single  articles  over  5  tons  and  not  exceeding  10  tons  each,  Od.  per  ton),  minimum 
charge  as  for  2  tons  per  wagon  (except  as  per  note '  below),  which  does  not  include  responsibility  for  loading, 
stowing,  checking,  counting,  custody,  or  condition  of  goods;  but  the  company  \vi\\  accept  the  usual  hability  of 
carriers  either  by  railway  or  barge  (at  the  company's  option)  at  a  rate  of  1/6  per  ton  (no  single  article  to  exceed 
10  tons  in  weight),  \\-ith  a  minimum  of  2/6  per  wagon  (except  as  per  note '  below),  but  both  rates  are  exclusive 
of  canal  toll  or  charges  for  any  labor  that  may  be  incurred  in  the  handling  of  the  goods.  The  company  do  not 
guarantee  to  chscharge  goods  direct  ex-ship  to  railway  wagon  or  barge,  but  will  endeavor  to  do  so  with  the  view 
to  avoid  quay  porterage. 

A  requisition  on  the  company's  printed  form  fer  haulage  must  be  filled  up  and  lodged  at  the  dock  trafl&c 
offices,  Trafford  Road,  Salford,  previous  to  the  service  being  required,  and  the  rate  to  be  charged  inserted,  to 
indicate  whether  the  goods  are  to  be  hauled  at  the  owner's  risk  or  conveyed  bj'  the  company  as  carriers. 

WAREHOUSING    AXD    STORAGE    CHARGES    (eMPORTS). 

Traffic  requiring  warehousing  or  storage  will,  if  consignees  desire  it,  be  warehoused  or  stored  by  the  canal 
company  at  the  docks,  rates  for  which  can  be  obtained  on  application  at  the  dock  office,  or  the  dock  traffic 
offices,  Trafford  Road,  Salford. 

The  warehouses  and  storage  grounds  are  open  for  deliver}^  of  "free"  goods  from  S  a.  m.  to  ,5  p.  m.;  Satur- 
days from  8  a.  m.  to  4  p.  m.     Bonded  goods  can  only  be  obtamed  during  customs  hours. 

The  canal  company,  whilst  acting  as  warehousemen  or  wharfingers,  will  not  be  responsible  for  the  conse- 
quences of  leakage,  loss  of  weight  or  measure,  or  for  deterioration  from  natural  causes,  or  for  the  consequences  of 
fire,  strikes,  combinations  of  workmen,  the  act  of  God,  or  the  king's  enemies. 

If  at  the  expiration  of  72  hours  after  landmg  goods  have  not  been  removed  by  the  owniers,  the  canal  company 
may  take  possession  of  them  as  warehousemen  or  wharfingers,  and  remove  them  to  warehouse  or  store,  and  the 
"warehousmg  or  storage  rate"  ^vill  be  charged  m  addition  to  the  "quay  porterage  rate."  If  in  an}'  special 
case  the  company  should  allow  goods  to  remain  where  landed  on  the  quay,  or  in  a  transit  shed,  the  warehousing 
or  storage  rate  will  be  substituted  for  the  "quay  porterage  rate,"  and  the  goods  will  remain  on  the  quay  at  the 
sole  risk  of  the  ownier. 

The  rates  quoted  for  warehousmg  mclude  the  following  services,  unless  other\sase  stated: 

Receiving  direct  ex-sliip  (when  practicable)  or  ex-quay  into  the  company's  railway  wagons,  haulage  to 
warehouse,  housing,  counting,  furnishing  warehousing  slips,  unhousing,  and  deliveiy  to  railway  wagons  or  road 
vehicles  but  not  stowage  therein.  For  delivery  to  craft  (but  not  stowage  therein),  when  not  berthed  alongside 
where  goods  lie,  an  additional  charge  of  6d.  per  ton  is  made. 

If  when  goods  are  being  delivered  to  road  vehicles  or  barges  the  canal  company  allow  their  servants  volun- 
tarily to  assist  in  the  unslmgmg  and  stowage  of  the  goods  therem  in  order  to  facilitate  delivery,  liability  for  any 
accident  arising  therefrom  to  workmen,  hoi-ses,  lurries,  or  other  veliicle  or  barges,  or  damage  to  the  goods,  shall 
not  under  any  circumstances  attach  to  the  company. 

The  canal  company  will  endeavor  to  avoid  quay  porterage  (but  do  not  guarantee  to  do  so)  if  instructions  to 
warehouse  or  store  goods  are  lodged  at  the  dock  office  24  hours  before  the  vessel  arrives  at  the  docks,  for  the 
purpose  of  enablmg  the  company  (if  found  practicable  to  deliver  goods  direct  ex-sliip,  and  if  wagons  are  avail- 
able) to  place  wagons  alongside  to  receive  the  goods  as  discharged. 

Other  circumstances  maj',  however,  occur  even  when  wagons  are  alongside  to  prevent  discharging  direct 
from  ship  to  wagon,  in  which  case  the  quay  porterage  rate  in  addition  to  the  warehousmg  or  storage  rate  will  be 
charged. 

STORAGE    IX    THE    OPEX. 

The  canal  company  pro^^des  storage  ground  for  traffic  which  can  be  stored  m  the  open. 

The  rates  quoted  for  storage  in  the  open  mclude  the  foUowing  services,  unless  otherwise  stated: 

Receiving  direct  ex-sliip  (when  practicable)  or  ex-quay  mto  the  compan^-'s  railway  wagons,  haulage  to  the 

storage  ground,  unloading  to  stock,  and  deliver}-  to  railway  wagons  or  road  vehicles,  but  not  stowage  therein. 

For  delivery  to  craft  (but  not  stowage  therein)  when  not  berthed  alongside  where  goods  lie,  an  additional  charge 

of  6d.  per  ton  is  made. 

'  The  charge  for  haulage  or  conveyance  of  articles  of  unsual  length,  bulk,  or  weight,  or  of  exceptional  bulk  in  proportion  to  weight,  will  be  by  special  arrangement. 


PAJSTAMA  CANAL  TRAFFIC   AND   TOLLS. 


457 


WAEEUOUSE    AND    STORAGE    RENT. 

Rent  will  be  charged  from  the  date  goods  are  placed  in  the  warehouse  or  on  the  storage  ground,  and  part  of  a 
week  will  be  charged  for  as  a  week. 

SAMPLING,  ETC.,  OF  MERCHANDISE    AT    THE    DOCKS. 

Permits  to  sample  goods  lying  in  the  canal  company's  warehouses  or  transit  sheds  can  be  obtamed  at  the 
offices  of  the  dock  traffic  supcrmtendcnt,  on  presentation  of  a  written  samplmg  order  from  the  owaier  of  the 
goods,  and  no  charge  will  be  made  for  attendance  of  the  company's  servant  during  the  operation,  or  for  attend- 
ance wliile  the  merchant's  representative  is  re-markuig,  examining  contents,  or  turning  over  packages,  but  the 
canal  company  accept  no  responsibility  for  the  condition  ui  which  the  goods  are  left  by  the  sampler  or  other 
representative  of  the  owner. 

If  the  canal  company  are  requested  to  sample,  a  charge  will  be  made  for  the  service  as  follows: 
Where  no  special  rates  are  fixed  for  the  samplmg  of  the  goods  in  question,  the  company  will  charge  for 
samplmg  of  merchandise  in  general  the  actual  cost  for  the  time  incurred  by  the  man  occupied  m  taldng  the 
sample  (plus  12^  per  cent)  and  the  value  of  material  used  in  the  operation,  with  a  nunimum  charge  of  9d. 

DUTIABLE    GOODS    (EXCLUDING    DRIED    FRUIT,    SUGAR,    GLUCOSE,    CONDENSED    MILK,    ETC.)    LYING    AT    THE    DOCKS 
PENDING    PASSING    CUSTOMS'    ENTRY,  EXAMINATION    BY    CUSTOMS,  AND  PAYMENT    OF   DUTY. 

All  dutiable  goods  while  lying  at  the  docks  pending  the  passing  of  the  entry  of  same  through  the  custom- 
house, examination  by  customs  officers,  and  payment  of  duty  thereon,  or  the  dispatch  of  the  goods  under  bond 
elsewhere,  are  watched  by  the  customs  authorities  at  the  cost  of  the  importer,  the  charge  for  which  service, 
however,  does  not  cover  responsibility  for  their  safe  custody  wliile  on  the  quays  and,  therefore,  for  the  better 
protection  of  the  goods,  and  to  minimize  the  cost  incurred  by  watching  on  the  quay,  the  canal  company  have, 
with  the  approval  of  His  Majesty's  customs,  set  apart  a  portion  of  a  building  erected  on  No.  7  Dock  East  as  a 
customs  transit  depot  for  the  storage  of  dutiable  goods  wliile  remaining  at  the  docks. 

Charges  for  placing  alongside  depot: 

For  conveyance  of  all  dutiable  goods  to  the  depot,  whether  by  railway  truck  over  the  dock  lines  or  by  cart, 
when  direct  ex-vessel  not  berthed  alongside  the  depot.  Is.  6d.  per  ton  (minimum  charge,  9d.). 

If  the  goods  are  landed  on  quay  before  bcmg  so  conveyed,  they  will,  m  addition  to  the  charge  for  convey- 
ance, be  liable  to  the  quay  porterage  charge  applicable  to  the  particular  class  of  goods  landed.  See  quay  porterage 
rates,  this  schedule. 

In  both  cases  the  following  rates  for  use  of  the  depot  will  be  pa,vable  in  addition  to  the  above-mentioned 

charges : 

Charges  for  use  of  depot. 


Wet  goods  (in  stone jara  or  casks).^ 

Packages  not  exceed jng  1  gallon each. 

Packages  exceeding  1  gallon  and  not  exceeding  3  gallons " do.. 

Packages  exceeding  3  gallons  and  not  exceeding  10  gallons do.. 

Packages  exceeding  10  gallons  and  not  exceeding  30  gallons do. . 

Packages  exceeding  30  gallons  and  not  exceeding  70  gallons do.  . 

Packages  exceeding  70  gallons  and  not  exceeding  100  gallons do. . 

Packages  exceeding  100  gallons do. . 

>  2  See  footnotes  on  p.  4S3. 


For  receiving  into 
depot  from  rail- 
way wagon,  cart, 
or  "  barge,  ware- 
housing for  the 
period  mentioned 
after  landing,  and 
delivery  to  but  not 
stowage  in  railway 
wagon,  cart,  or 
barge  when  the 
latter  can  be 
berthed  alongside. i 


0  J 

0  IJ 

0  3 

0  6 

0  9 


0  1 
0  1 
0    2 


Rent  per  week,  or 
any  part  of  a  week, 
after  the  expiration 
of  one  week  from 
time  of  warehous- 
ing. 


s.  d. 

0  i 

0  i 

0  1 

0  1 

0  2 

0  3 

0  6 


s.d. 
0  1 
0  1 
0  2 
0    2 


458 


PANAJMA  CANAL   TRAFFIC    AND   TOLLS. 

Charges  for  use  of  depot — Continued. 


For  receivmg  into 
depot  from  mil- 
way  wagon,  cart, 
or  barge,  ware- 
housing for  tiio 
period  mentioned 
after  landing,  and 
delivery  to  Init  not 
stowage  in  railway 
wagon,  cart,  or 
barge  when  the 
latter  can  be 
berthed  alongside. > 


Rent  per  week,  or 
any  part  of  a  week, 
after  the  expiration 
of  72  hours  from 
time  of  warehous- 
ing. 


Dry  goods  (or  wet  goods  in  bottles  packed  in  cases  or  casks).^ 

5  not  exceeding  1  cubic  foot each. 

i  exceeding  1  foot  and  not  exceeding  3  cubic  feet do . . 

Packages  exceeding  3  feet  and  not  exceeding  10  cubic  feet do. . 

Packages  exceeding  10  feet  and  not  exceeding  30  cubic  feet do.. 

Packages  exceeding  30  feet  and  not  exceeding  60  cubic  feet do.. 

Packages  exceeding  60  feet  and  not  exceeding  80  cubic  feet ^ do.. 

Packages  exceeding  80 feet  and  not  exceeding  100  cubic  feet do.. 

For  every  20  cubic  feet  or  part  of  20  feet  above  100,  additional 

Packages  (empty  when  imported) each. 

Goods  in  bulk,  or  not  in  packages,  per  ton  average 


0  J 

0  li 

0  5 

0  9 

1  2 
1  9 
0  9 
0  1 


0  1 
0  1 
0    2 


s.  d. 
0  i 
0      J 

0  1 

0  11 

0  2 

0  3 

0  6 

0  3 
0      i 


0  1 

0  1 

0  2 

0  2 


'  If  the  goods  are  discharged  direct  exship  into  depot  the  ordinary  quay  porterage  rates  and  conditions  will  apply  to  them,  but  should  they  not  be  removed  within  72' 
hours  from  time  of  landing  the  undermentioned  charges  will  be  substituted  for  the  quay  porterage  rate. 

'  The  foregoing  charges  do  not  apply  to  sugar,  glucose,  condensed  milk,  etc,  for  which  see  separate  schedule.  Neither  do  they  apply  to  dried  fruit,  for  which  see 
below. 

Note. — Fractions  of  a  penny  in  a  total  will  be  charged  for  as  a  penny. 

Note. — Importers  may  often  avoid  payment  of  the  charges  for  the  use  of  the  depot  by  making  arrangements  with  His  Majesty's  customs 
before  the  goods  are  landed  to  take  delivery  of  them  from  the  ship's  discharging  berth  on  the  same  day  as  they  are  landed,  or  the  canal 
company  will  allow  the  goods  to  remain  on  the  quay  at  the  ship's  discharging  berth  subject  to  the  owners  arranging  before  the  landing 
of  the  goods  with  the  customs  authorities  for  the  goods  to  be  so  dealt  with. 

DRIED    FRUIT. 

Customs  entries. — If  at  the  expiration  of  72  hours  after  landing  the  owner  of  fruit  has  not  passed  customs 
entries  for  same,  the  canal  company  will  pass  a  "warehousing  entry,"  and  after  the  goods  have  been  weighed 
they  may,  by  permission  of  the  customs,  remain  on  the  quay  at  a  quay  rent  charge  of  6d.  per  ton  per  day,  or 
they  may  at  any  time  without  notice,  be  received  by  the  company  as  warehousemen,  and  removed  to  their 
bonded  warehouses,  in  which  case  the  fruit  will  be  subject  to  the  ciuay  porterage  and  bonded  warehousing 
charges,  and  also  any  quay  rents  that  may  have  been  incurred. 

A  charge  of  2s.  6d.  per  consignment  vnW  be  made  for  passing  entry  through  customs. 
Note. — Warehousing  and  rent  rates.     Ten  per  cent  will  be  charged  in  addition  to  the  rates  set  out  herein. 

BONDED    WAREHOUSE. 

By  arrangement  with  the  customs  authorities,  the  canal  company  have  set  apart  certain  rooms  in  their 
warehouses  north  of  No.  8  dock  for  the  storage  of  dried  fruit  under  bond,  and  the  following  are  the  charges 
made  for  placing  currants  and  raisins  in  the  bonded  warehouse,  viz: 

For  receiving  from  the  quay  in  the  company's  railway  wagons,  stowage  therein,  and  haulage  to  alongside 
the  warehouse,  receiving  into  warehouse,  counting,  furnishing  warehousing  slips,  and  delivery  to  but  not  stow- 
age in  railway  wagon  or  road  vehicle.  For  deliver}'  to  barge  (but  not  stowing  therein)  an  additional  charge 
of  6d.  per  ton  is  made. 

s.   d. 

Currants  f  In  cases 2     0  per  ton 

and      I  In  smaller  packages 2     3  per  ton  [  In  addition  to  the  cpiay  porterage  rate. 

raisins.   [  In  casks  or  barrels  _  _    1     6  per  ton 


PANAJtfA  CANAL   TRAFFIC   AND   TOLLS.  459 

Rent  in  bonded  warehouse  from  date  of  entry,  6d.  per  ton  per  week. 

Opening,  examining,  repacking,  or  any  other  service  required,  is  charged  for  extra,  according  to  the  labor 
and  materials  expended. 

Other  dry  dutiable  goods  (except  tobacco  and  saccharine)  can  also  be  warehoused.  For  charges,  applica- 
tion should  be  made  to  the  dock  traffic  superintendent  at  the  canal  compan^-'s  dock  traffic  offices,  Traft'ord 
Road,  Salford. 

The  hours  during  which  the  customs  transit  shed  and  bonded  warehouse  are  open  for  the  conduct  of  business 
are  regulated  by  the  hours  observed  by  the  customs  authority. 

The  canal  company,  whilst  acting  as  warehousemen,  will  not  hold  themselves  responsible  for  the  conse- 
quences of  leakage,  loss  of  weight  or  measure,  or  for  deterioration  from  natural  causes,  or  for  the  consequences 
of  fire,  strikes,  combinations  of  workmen,  the  act  of  God,  or  the  King's  enemies. 

Note. — Warehousing  and  rent  rates.     Ten  per  cent  will  be  charged  in  addition  to  the  rates  set  out  herein. 

EXPORT    TRAFFIC. 

All  goods  laid  down  on  or  passing  over  the  quays  of  the  docks  of  the  ship  canal  company,  or  deposited  in 
the  quay  sheds,  are  at  the  owner's  sole  risk  in  every  respect ;  the  company  have  no  custody  of  such  goods,  and  wall 
not  be  responsible  for  leakage,  loss  of  weight  or  measure,  or  for  damage  by  fire,  theft,  strikes,  combinations  of 
workmen,  weather,  deterioration  from  natural  causes,  acts  of  God,  the  King's  enemies,  or  otherwdse  howsoever. 

The  rule  at  the  Manchester  docks  in  regard  to  exports  is  that  when  a  loading  berth  is  allocated  to  a  par- 
ticular line  of  vessel,  or  to  a  particular  vessel,  the  sliipowners  will  pay  for  receiving  the  merchandise  into  the 
quay  shed,  on  to  the  quay,  or  into  sliip  on  the  arrival  of  the  merchandise  at  the  docks. 

Goods  for  export  sent  to  a  vessel's  berth  at  the  docks,  and  not  intended  for  immediate  shipment,  will  be 
afiowed  by  the  canal  company  to  remain  at  the  docks  at  the  o^vner'ssole  risk  for  one  calendar  month  free  of 
rent,  after  which  period  the  company  may  take  the  same  into  warehouse  or  store  and  redeliver  to  alongside  the 
vessel  when  she  is  ready  to  receive  the  goods,  charging  the  o^vner  of  the  goods  for  the  extra  services  performed 
at  the  company's  scheduled  rates  plus  rent  (after  the  one  month)  in  addition  to  the  canal  toll  and  wharfage. 

If  the  canal  company  can  allow  goods  to  lie  where  first  received  beyond  one  calendar  month  from  date  of 
receipt  they  will  charge  the  owners  Is.  per  ton,  plus  rent,  for  such  accommodation  in  lieu  of  their  usual  ware- 
housing or  storage  charge,  plus  rent,  as  above  mentioned.  The  goods  will,  however,  continue  to  remain  at  the 
owner's  sole  risk. 

In  addition  to  the  above-named  charges,  the  shipowner  will  be  debited  with  the  usual  6d.  per  ton  for 
receiving  to  cjuay. 

When  pitch,  bricks,  gravel,  scrap  iron,  and  other  rough  traffic  arrives  at  the  Manchester  docks  per  railway 
for  shipment,  if  instructions  for  disposal  are  not  in  the  possession  of  the  canal  company  on  or  before  the  arrival 
of  the  traffic,  and  even  if  so  if  the  steamer  is  not  ready  to  receive  the  traffic  on  its  arrival  at  the  docks — in  order 
to  avoid  incurring  demurrage  on  the  railway  wagons — such  traffic  may  be  discharged  from  the  wagons  on  to  the 
quay,  the  charge  for  such  service  being  cost,  plus  12^  per  cent.  Should  the  company  be  unable  to  unload  the 
wagons  at  the  vessel's  loading  berth,  the  additional  cost  of  subsequently  removing  the  traffic  from  where 
deposited  to  the  vessel's  side  will  also  be  charged. 

For  instructions  as  to  the  method  of  consigning,  and  other  matters  relating  to  export  traffic  arriving  at 
the  docks  per  railway,  see  page  464. 

REGULATIONS    AND    RATES    FOR    THE    HIRE    AND    USE    OF    THE    CANAL    COMPANY'S    CRANES. 

Regulations. 

1.  Application  for  the  use  of  cranes,  and  deposits  to  cover  charges  for  their  use,  must  be  made  at  the  dock 
office. 

2.  When  a  crane  is  required  to  lift  a  weight  exceeding  20  hundredweight,  the  application  must  state  the 
maximum  capacity  of  the  crane  required.  In  the  event  of  a  greater  weight  than  stated  in  the  apphcation  being 
tendered  for  liftmg,  and  bemg  hfted,  the  hirer  of  the  crane  wUl  be  liable  for  the  consequence  should  any  acci- 
dent arise  tlierefrom. 

3.  The  exact  weight  of  every-  article  to  be  lifted,  if  over  1  ton,  must  be  marked  thereon. 


460  PAN.\iIA  CANAL  TRAFFIC   AND  TOLLS. 

4.  If  two  or  more  requisitions  be  lodged  for  the  use  of  a  particular  Crane  for  the  same  time,  the  dock  traffic 
superintendent  shall  decide  which  requisition  shall  have  priority. 

5.  When  a  vessel  is  in  possession  of  crane  berth,  whether  she  is  working  or  not,  and  such  berth  is  otherwise 
required,  she  shall  vacate  the  same  if  mstructcd  to  do  so  by  the  dock  traffic  superintendent. 

6.  The  full  rate  of  hire  will  be  charged  accordmg  to  the  schedule  for  any  crane  from  the  time  the  crane  is 
ready  for  use  until  a  notification  be  given  to  the  dock  traffic  supcrmtendent  that  the  crane  is  no  longer  required. 

7.  After  steam  has  been  got  up  on  a  crane,  and  while  under  steam,  or  after  a  hydrauUc  or  electric  crane 
has  been  placed  m  position,  should  notice  be  given  that  it  is  not  required,  a  charge  of  5s.  per  hour  ^^•ill  be  made 
in  respect  of  the  30-ton  crane  and  2s.  6d.  per  hour  m  respect  of  other  cranes,  with  a  mmimum  charge  of  15s. 
and  7s.  6d.,  respectively,  m  Uou  of  the  charges  scheduled. 

8.  Cranes  may  be  liired  from  the  canal  company  at  the  rates  fixed  per  hour,  but  in  such  cases  the  hirer  of 
the  crane  takes  the  risk  of,  and  is  liable  for,  the  consequences  of  all  accidents  arising  from  and  during  the  hire 
of  such  crane,  as  per  Regulation  No.  9,  or  the  company  will  undertake  to  provide  cranage,  labor,  and  gear  at  a 
tonnage  rate  which  covers  such  risk. 

9.  WTien  a  crane  is  hired  per  the  hour,  the  hirer  is  responsible  for  the  consequences  of  any  accident  that 
may  occur  from  whatever  cause  arismg  to  any  person  or  plant  by  the  use  of  such  crane  during  the  hire  of  same 
as  though  the  crane  was  the  property  of  the  hirer. 

10.  WTiere  the  canal  company  undertake  the  cranage  at  a  tonnage  rate,  and  the  weight  of  the  article  to  be 
lifted  is  correctly  declared  (see  Regulation  No.  3),  the  risk  of  accidents  arising  from  the  use  of  the  crane  is  ac- 
cepted by  the  company,  unless  the  person  who  has  requisitioned  the  crane,  by  his  own  or  his  servant's  act,  has 
contributed  to  the  accident. 

11.  The  canal  company  do  not  hold  themselves  responsible  for  any  delays  which  may  aiise  in  supplying 
cranes  by  the  time  recjuisitioned,  or  through  the  breakdown  of  any  crane  whilst  on  hire. 

Bates  for  hire  and  use  of  the  canal  company's  cranes. 
Portable  steam  cranes: 

Not  exceeding  30  hundredweight  hfting  capacity —  s.    d. 

Minimum  charge 10    0 

For  any  period  exceeding  4  hours,  per  hour 2    6 

Exceeding  30  hundredweight  and  up  to  7  tons  lifting  capacity — 

Minimum  charge 12    6 

For  any  period  exceeding  3  hours,  per  hour 3    6 

Hydraulic  cranes: 

Not  exceeding  30  hundredweight  lifting  capacitj' — 

Minimum  charge 10    0 

For  any  period  exceeding  4  hours,  per  hour 2    6 

Electric  cranes: 

10  hundredweight  lifting  rapacity — 

Minimum  charge 7    6 

For  any  period  exceeding  4  hours,  per  hour 2    0 

30  hundredweight  lifting  capacity — 

Minimum  charge 10    0 

For  any  period  exceeding  4  hours,  per  hour 2    6 

When  the  distant  control  gear  for  cranes  is  requisitioned,  an  additional  charge  of  Is.  per  hour  will  be  made 
for  the  use  of  the  crane. 

The  before-mentioned  rates  cover  only  the  use  of  the  crane  and  driver  to  work  it. 

Hates  for  use  of  30-ton  crane. 

Kate  per  hour:                                                                                                                                                                                              £  s.     d. 

Minimum  charge 1  10    0 

For  any  period  exceeding  3  hours,  per  hour 0  10    0 

These  rates  cover  only  the  use  of  the  crane  anil  driver  to  work  it. 
Tonnage  rates: 

For  lifts  not  exceeding  10  tons,  at  2s.  6d.  per  ton;  minimum  charge  £1  5s 

For  lifts  over  10  and  not  exceeding  15  tons,  at  3s.  6d.  per  ton. 

For  lifts  over  15  and  not  exceeding  20  tons,  at  4s.  6d.  per  ton. 

For  lifts  over  20  and  not  exceeding  25  tons,  at  5s.  per  ton. 

For  lifts  over  25  and  not  exceeding  30  tons,  at  5s.  6d.  per  ton. 


PANAilA  CANAL  TRAFFIC  AND  TOLLS.  461 

These  rates  cover  cranage,  labor,  and  use  of  the  necessary  gear  for  lifting  direct  from  railway  wagon  or 
road  vehicle  (or  barge  alongside  when  practicable),  and  puttmg  on  board  vessel,  or  vice  versa. 

For  each  additional  lift  of  the  same  article,  whUo  the  crane  is  under  steam,  50  per  cent  of  the  above  rate 
wlU  be  charged,  but  if  steam  has  to  be  specially  raised,  the  full  rates  wiU  apply. 

When  anj'  crane  is  hired  to  work  by  time,  the  foregoing  rates  cover  the  service  only  durmg  the  ordinary 
working  hours.     For  overtime,  see  "overtime"  clause,  page  22. 

Further  information  as  respects  labor  charges  ma}-  be  obtahied  from  the  dock  traffic  superintendent,  at 
the  dock  traffic  offices,  Traflford  Road,  Salford. 

HAXJLAGE,    OR   CONVEYANCE   AS   CARRIERS,    BY   THE    SHIP   CANAL   COMPANY   OF   TRAFFIC   ON   THEIR   RAILWAY'  LINES 
FROM    POINT    TO    POINT    ON    THEIR    MANCHESTER    DOCK    ESTATE    ABOVE    MODE    WHEEL    LOCKS. 

The  canal  company  ^vill  imdertake  either  of  the  above-named  services  on  the  undermentioned  terms  and 
conditions,  which  are  printed  on  the  back  of  their  haulage  or  conveyance  form  of  requisition,  viz: 

Haulage. —  1.  If  the  companj-  are  required  to  imdertake  the  service  of  haulage  only,  their  charge  for  the 
same  only  provides  for  the  use  of  the  company's  wagons,  their  dock  railways,  and  the  haulage  of  the  loaded  and 
empty  wagons  between  the  respective  points,  and  does  not  cover  the  service  of  loading  or  unloading  the  wagons, 
checkuig  the  goods  into  or  out  of  the  same,  advising  consignee  of  arrival,  nor  any  risk  to  which  the  goods  may 
be  liable,  nor  any  damage  they  may  sustain  while  on  the  wagons,  and  it  rests  with  the  owner  of  the  goods  to  make 
provision  for  all  needful  services  outside  that  of  haulage,  and  to  give  or  take  such  receipt  for  goods  so  hauled 
as  may  be  required  by  either  consignee  or  sender  from  the  other. 

2.  The  company  will  also  provide  sheets  to  cover  goods  m  wagons  when  apphed  for,  without  extra  charge, 
and  also  ropes  where  necessary,  but  will  not  be  responsible  for  damage  to  goods  arising  from  any  Gatent)  defect 
in  the  sheets  or  loose  sheeting  or  roping. 

3.  It  is  not  compulsory  upon  the  company  to  undertake  the  service  of  haulage,  and  when  undertaken  it 
is  subject  to  the  company  having  wagons  and  sheets  at  hberty  at  the  time  required. 

4.  The  company's  charge  for  the  service  of  haulage  (as  defined  in  clause  1)  from  point  to  point  on  their 
dock  estate  above  Mode  Wheel  Locks  is: 

For  general  merchandise,  no  suigle  piece  of  which  is  more  than  5  tons  in  weight,  6d.  per  ton  (minimum 
charge  as  for  2  tons) ;  over  .5  tons  and  not  exceedmg  10  tons,  9d.  per  ton. 

Conveyance. — 5.  If  the  company  are  required  to  convey  and  undertake  the  risk  of  common  carriers  in  Heu 
of  that  of  haulers  of  the  traffic,  the  charge  will  be  1/6  per  ton  (no  single  article  to  exceed  10  tons  in  weight),  with 
a  mmimum  of  2/6  per  wagon  for  use  of  wagons,  sheets  (where  necessary) ,  and  conveyance,  but  not  labor  in  loading 
or  unloading. 

Stowing  in  wagons. — 6.  For  the  service  of  stowing  in  wagons  of  traffic  placed  therein  at  the  doclvs  the 
company's  charge  is:  If  the  service  can  be  done  by  one  man,  and  the  traffic  is  not  of  exceptional  size  or  bulk, 
2d.  per  ton. 

Demurrage. — 7.  For  detention  of  wagons  or  sheets  longer  than  24  hours  in  either  loading  or  unloadmg, 
after  arrival  at  either  end,  the  company's  charge  is — 

For  ordinaiy  wagons,  3s.  each  per  day  or  part  of  a  day. 

For  specially  constructed  wagons  capable  of  carrying  15  tons  and  under  20  tons,  6s.  each  per  day  or  part 
of  a  day;  20  tons  and  under  30  tons,  12s.  each  per  day  or  pait  of  a  day;  30  tons  and  upward,  20s.  each  per  day 
or  part  of  a  day;  for  sheets,  Is.  each  per  day  or  part  of  a  day. 

If  the  wagons  after  being  loaded  are  kept  at  the  loadmg  point  by  sender  or  consignee  before  being  hauled 
or  conveyed,  the  demurrage  charge  above  named  will  apply  both  to  wagons  and  sheets  for  the  whole  of  the 
time  the  wagons  and  sheets  are  so  detained. 

Miscellaneous. — 8.  The  haulage  or  conveyance  of  the  traffic  \vill  be  considered  as  commenced  and  terminated 
when  the  wagons,  either  singly  or  in  a  train,  are  placed  at  the  time  of  haulage  or  conveyance  as  near  as  they 
can  be  to  the  point  of  loading  or  unloading,  as  the  case  may  be. 

9.  If  the  goods  are  not  unloaded  within  24  hours  after  arrival  at  or  as  near  to  the  destination  as  the  wagon 
can  be  placed  at  the  time  of  haulage  or  conveyance,  the  company  may  elect  to  either  allow  the  goods  to  remain 
in  the  wagon,  and  claim  demurrage  from  the  firm  or  person  requisitioning  the  service,  or  unload  them  at  the 
cost  and  risk  of  the  said  fu-m  or  person;  and  m  the  event  of  any  dispute  as  to  liabihty  for  payment  of  the  same, 
the  company  will  detain  the  goods  until  all  charges  due  upon  them  are  paid. 


462  PANAMA  CANAL  TRAFFIC   AND  TOLLS. 

10.  Articles  exceeding  10  tons  in  weight,  or  of  unusual  length  or  bulk,  or  of  exceptional  bulk  in  proportion 
to  weight,  or  requii'ing  a  specially  constructed  wagon  for  conveyance,  or  a  special  train  to  deliver,  can  only 
be  stowed  in  wagons  and  hauled  or  conveyed  by  special  arrangement,  and  subject  to  the  company  having  at  their 
disposal  the  means  necessary  for  handUng  the  articles  and  for  hauling  or  conveying  same. 

11.  Persons  or  firms  ordering  wagons  or  sheets  which  they  subsecjuently  find  they  will  not  require,  and 
failing  to  notify  the  company  of  the  fact  within  24  hours  after  lodgment  of  requisition  for  them,  mtU  be  charged 
demurrage  at  the  foregoing  rates  for  the  wagons  or  sheets  so  provided. 

12.  If  the  use  of  the  coiiq^any's  engine  should  be  requned  for  any  other  purposes,  a  charge  will  be  made 
for  the  same  at  the  rate  of  7s.  per  hour,  with  a  minimum  charge  of  2s.  6d. 

13.  Haulage  or  conveyance  to  places  below  mode  wheel  locks  will  be  subject  to  special  arrangement. 

14.  No  haulage  or  conveyance  wiU  be  performed  by  the  canal  company  except  upon  lodgment  in  the  railway 
department  at  the  dock  traffic  offices,  Trafford  Road,  SaKord,  of  one  of  the  company's  requisitions  provided  for 
this  traffic  duly  filled  up  and  signed  by  the  party  recpiiring  the  service  and  liable  to  payment  for  the  same.  In 
the  event  of  the  rate  at  which  the  service  is  required  to  be  performed  being  omitted  from  the  requisition  by  the 
party  signing  same,  the  canal  company  wdl  only  deal  with  the  traffic  as  haulers  at  the  haulage  rate  and  under 
the  haulage  conditions. 

Note. — The  canal  company  claim  the  option  to  employ  barges  instead  of  railway  wagons  should  it  better  suit  their  convenience  to  do 
80,  but  if  barges  are  used  no  greater  charge  will  be  made  for  either  the  liaulage  or  conveyance  service  than  if  railway  wagons  had  been 
employed,  except  in  the  case  of  demurrage,  the  charges  for  whicli  in  respect  of  barges  will  be  as  follows: 

For  detention  longer  than  24  hours  in  loading  or  unloading:  1/  per  hour,  or  £1  Is.  per  day  for  lighters  carrying  any  weight  up  to  80 
tons  inclusive;  1/6  per  hour,  or  £1  10s.  per  day  for  lighters  carrjdng  more  than  80  tons. 

The  following  is  a  print  of  the  company's  form  of  requisition,  copies  of  which  can  be  obtained  either  at  the 
dock  office  or  the  dock  traffic  offices,  Trafford  Road,  Salford. 

Manchester  Ship  Canal  (Railways). 

Order  for  haulage  or  conveyance. 

,  19-. 

To  the  Manchester  Ship  Canal  Co.: 

Please  (haul)  or  (convey  as  carriers)  the  undermentioned  traffic  on  the  conditions  named  at  the  back  hereof:  From  -^^,  to  

debiting  (me)  (us)  mth  the  charge  of per  ton  for  the  service  covered  by  that  rate,  as  defined  at  the  back  hereof,  and  with  all  other 

charges  (stowing  in  wagons  or  barges,  demurrage,  etc.)  which  may  arise  in  connection  therewith,  and  which  (I)  (we)  hereby  undertake 

to  pay. 

Name • — ■ , 

Address — — ■ — . 

Signed • — — . 


Wagon  numbers. 


Goods  and  markf 


Note. — This  requisition  will  not  be  acted  upon  unless  signed  by  the  person  or  firm  liable  to  pay  for  the  service. 

Through  rates  hy  railway. — The  following  main  line  railways  are  in  connection  with  the  dock  railways  of 
the  Manchester  Ship  Canal  Co.,  viz: 

The  Chesliire  Lines,  Midland,  Great  Northern,  and  Great  Central  Railway  Companies,  via  Bridgewater 
Junction  (C.  L.  C).  The  London  &  North  Western  Railway  Co.  at  Weaste  Junction.  The  Lancasliire  &  York- 
shire Railway  Co.  at  New  Barns  Junction,  Salford. 

There  is  direct  railway  communication  by  means  of  the  above  lines  between  the  quays  and  warehouses  of 
the  Manchester  docks  and  every  railway  station  in  Great  Britain. 

The  canal  company's  "through  rates"  are  all  subject  to  the  conditions  and  regulations  of  the  general  rail- 
way classification  of  goods  and  of  the  ship  canal  company's  current  schedule  of  rates  of  toll  and  wharfage,  etc. 
Each  through  rate  is  made  up  of  the  railway  rate  between  the  docks  and  the  inland  station,  the  ship  canal  toll, 
and  such  labor  charges  at  the  docks  as  are  incidental  to  the  handling  of  traffic  to  or  from  railway  wagons  direct 
from  or  to  alongside  vessel. 

The  rate  also  includes  coUection  or  delivery  by  cart  (within  the  ordinary  cartage  limit  at  the  inland  town) 
unless  otherwise  stated. 


PANAMA  CANAL  TRAFFIC   AND  TOLLS.  463 

KAIL  WAY   TRAFFIC    (iMPORTS). 

Conditions  relating  to  traffic  forwarded  from  the  docl'  quays  hy  the  canal  company  as  carriers  hy  railway. 

1.  When  merchandise  is  conveyed  inland  by  railway  b}'  the  canal  company  as  carriers  at  their  through  rate, 
such  portion  of  the  quay  porterage  rate  as  may  be  incidental  to  conveyance  is  included  in  the  rate  (except 
articles  of  unusual  length,  bulk,  or  weight,  or  exceptional  bulk  in  proportion  to  weight,  or  of  a  dangerous  nature, 
and  also  subject  to  what  is  stated  in  clause  5  hereof),  provided  forwarding  instructions  and  all  other  necessary 
documents,  including  particulars  required  on  inward  customs  entry  form,  for  passing  through  His  Majesty's 
customs  have  been  received  24  hours  before  the  arrival  of  the  sliip  at  the  docks,  and  such  forwarding  instruc- 
tions are  unconditional,  and  the  dispatch  of  the  goods  is  not  delayed  for  any  of  the  reasons  detailed  in  clause 
4  hereof. 

2.  Goods  required  to  be  forwarded  direct  ex-ship,  instructions  for  which  have  not  been  received  by  the 
canal  company  24  hours  before  the  ship's  arrival,  the  company  will  nevertheless  endeavor  to  load  direct  from 
ship,  and  so  avoid  the  quay  porterage  charge,  provided  wagons  are  available,  but  if  the  goods  are  landed  the  full 
scheduled  quay  porterage  rate  will  be  charged  in  addition  to  the  through  railway  rate. 

3.  When  the  canal  companj-  have  received  absolutely  unconditional  orders  to  forward  b}^  railway  to  interior 
towns  goods  landed  or  to  be  landed  on  the  dock  c(uays,  or  that  may  be  hang  in  the  company's  dock  warehouses, 
they  accept  the  carriers'  responsibility  (except  when  conveyed  at  owners'  risk)  for  the  safe  conveyance  of  such 
goods,  including  the  risk  of  fire,  from  the  time  they  are  cpiite  ready  and  at  the  company's  disposal  to  be  forwarded 
until  the  goods  are  delivered  to  the  railway  company-  carryuag  them  to  destination. 

4.  The  canal  company,  however,  hereby  give  notice  that  the}'  do  not  accept  and  are  not  responsible  for 
any  such  risk  -as  carriers  by  railway  in  respect  of  any  such  merchandise  while  by  the  order  of  the  sender  or 
consignee,  or  any  person  acting  on  behalf  of  either,  the  goods  are  being  reweighed,  sampled,  picked,  or  repaired, 
or  while  the  forwarding  thereof  is  suspended  by  any  other  order,  restriction,  act,  strike,  combmation  of  workmen, 
or  by  the  default  of  the  sender  or  consignee,  or  of  any  person  acting  on  behalf  of  either,  or  by  notice  of  lien  made 
under  the  powers  of  any  act  of  Parliament. 

5.  Notice  is  also  hereby  given  that  in  cases  where  merchandise  has  been  ordered  forward  by  rail,  but  a 
restriction  has  been  put  on  the  forwarding  because  of  inabihty  on  the  part  of  the  consignee  to  take  dehvery 
on  arrival,  and  (or)  of  the  inabihty  of  the  railway  company  to  deal  with  it  at  the  destination  pending  the  con- 
signee's ability  to  take  delivery,  quay  porterage,  and  other  charges,  in  accordance  ^vith  the  terms  of  this  schedule, 
wall  be  payable  for  the  period  or  periods  during  which  the  dispatch  of  the  merchandise,  or  any  portion  thereof, 
is  suspended  by  reason  of  such  restriction,  notmthstanding  that  such  traffic  has  been  ordered  forward  24  hours 
before  the  ship's  arrival  at  the  docks. 

If  the  traffic  landed  consists  of  any  of  the  following:  Asphalt  paving  (in  blocks),  bog  ore,  bricks  (fh-e), 
clay,  copperas  (green  in  bulk),  gravel,  iron  ore,  scrap  iron,  stone  in  the  rough  (building,  pitching,  paving,  kerb, 
or  flag),  and  stone  and  undressed  material  for  the  repair  of  roads,  a  nominal  extra  charge  of  3d.  per  ton  (and 
rent  when  incurred)  will  be  made  upon  such  traffic,  but  upon  any  other  traffic  not  named  the  full  quay  porterage 
rate  (and  warehousing  or  storage  and  rent  charges  when  incurred)  as  scheduled  by  the  company  to  apply  thereto 
will  be  charged. 

6.  The  full  scheduled  quay  porterage  rates  (and  warehousing  or  storage  and  rent  charges  when  incurred) 
wiU  be  charged  upon  all  descriptions  of  goods  landed  if  forwarding  orders  have  not  been  given  24  hours  before  the 
arrival  of  the  vessel  at  the  docks. 

7.  When  requested  to  weigh,  or  if  the  weight  is  not  declared  on  the  consignment  note,  and  goods  have  to 
be  landed  on  the  quay  for  weighing,  the  quay  porterage  charge  wiU  be  made  in  addition  to  the  through  rate. 
But  if  the  goods  are  cUscharged  ex  ship  direct  to  railway  wagon,  and  the  weight  is  ascertained  over  the  railway 
weighbridge  without  the  wagons  being  tared,  no  charge  ^vill  be  made.  Wlien  wagons  have  to  be  tared,  a  charge 
of  1  penny  per  ton  (minimum  3  tons  per  wagon)  will  be  made,  and  if  required  a  gross  weight  certificate  given. 

8.  Wlien  no  remittance  for  the  amount  due  at  the  through  rate  has  been  made  to  the  canal  company  before 
goods  are  forwarded,  the  same  will  be  invoiced  at  the  through  rate  (or  through  rate  less  canal  toU,  as  the  case 
may  be),  and  such  charges  must  be  paid  by  the  consignee  to  the  Main  Line  Railway  Co.,  the  latter  having  no 
authority  to  release  the  goods  except  upon  payment  of  such  charges. 

34998°— 12 31 


464 


PANAMA  CANAL  TEAFFIC  AND  TOLLS. 


EXPORT    TRAFFIC. 

In  order  to  obtain  the  advantage  of  the  canal  company's  througli  rates,  export  traffic  must  be  consigned 

"by  rail  direct  to  the  Manchester  docks  for  shipment  per  steamship carriage  forward,"  and  to  tlie  order 

of  the  shipper  if  in  Manchester,  or  his  Manchester  agent  as  the  case  may  be,  to  whom  the  canal  company  will 
charge  the  through  rate,  as  instructed,  and  pay  the  railway  company  for  their  conveyance  of  the  traffic  to  the 
docks. 

It  is  indispensable  that  all  export  traffic  be  thus  consigned  by  raU  direct  to  the  Manchester  docks,  other- 
wise it  may  be  sent  to  the  railway  company's  Manchester  town  station,  and  then  the  shipper  will  have  to  pay 
for  cartage  to  the  docks  and  other  additional  expenses. 

I  Wliere  suppliers  of  goods  contract  to  deliver  the  same  f.  o.  b.,  Manchester  doclvs,  they  should  arrange  with 

their  shipping  agents  to  pass  the  customs'  specification  and  pay  the  f.  o.  b.  charges  on  their  behalf  as  the  canal 
company  will  not  collect  such  charges  from  suppliers. 

All  inquiries  as  to  the  canal  company's  through  rates  should  be  addressed  to  the  Manchester  Ship  Canal  Co., 
dock  office,  Manchester,  and  not  to  the  railway  companies,  as  the  latter  are  not  parties  to  the  canal  company's 
through  rates. 

Conveyance  of  Goods  by  Canal  Carriers. 

There  is  water  communication  between  the  docks  and  the  several  canals  in  the  district  by  which  water 
conveyance  is  practicable  between  the  docks  and  towns  in  Lancashire,  Yorkshire,  Cheshire,  Staffordshire, 
East  Worcestershire,  and  Nottinghamshire.  The  following  is  a  list  of  the  various  canal  carriers  of  traffic  to  and 
from  the  docks,  with  the  districts  served  by  them,  from  whom  through  rates  for  conveyance  can  be  obtained 
on  application: 


Name  and  address  canal  carriers. 


District  served. 


Manchester  Ship  Canal  Co.  (Bridgewater  Department),  John  Oldfleld,  superintendent, 
Chester  Road,  Manchester. 

The  Anderton  Co.,  Stoke-on-Trent.    Manchester  representatives:  The  Manchester  Ship 

Canal  Co.,  order  ofHce,  15  Cooper  Street,  Manchester. 
Fellows,  Morton  &  Clayton  (Ltd.),  Lower  Fazeley  Street,  Birmingham.    Manchester 

representative:  Fred  liorton,  managing  director,  S  Brazennose  Street. 

Fellows,  Morton  &  Clayton  (Ltd.),  Wolverhampton 

Fellows,  Morton  &  Clayton  (Ltd.),  Dudley  Port 

Fellows,  Morton  &  Clayton  (Ltd.),  Nottingham 

Fellows,  Morton  &  Clayton  (Ltd. ),  Leicester 

Candy,  J.  W.,  Bridgewater  Wharf,  Derby : 

Leeds  &  Liverpool  Canal  Co.,  Pall  Mall,  Liverpool.  12.';  Chester  Road,  Manchester 

Mersey,  Weaver  &  Ship  Canal  Carrying  Co.  (Ltd.),  312  Deansgate,  Manchester 

Rochdale  Canal  Co.,  Dale  Street,  Manchester 

Statter,  T.  G.,  &  Co.,  Hulme  Locks,  Egerton  Street,  Manchester 

Simpson,  Davies  &  Sons,  Runcorn 

Thomason,  James,  Manchester  ofBce,  6  Water  Street;  Liverpool  ofHce,  6  Water  Street. . . 

Wood,  Albert,  head  office,  Sowerby  Bridge.    Manchester  ofBce,  Ashton  Canal  Wharf, 
Ducie  Street,  Piccadilly. 


All  places  on  the  Bridgewater  Canal:  also  Warrington,  Rochdale,  Heywood, 
Ashton-under-Lyne,  Stalybridge,  llollinwood  Wharf  (for  Oldham).  They 
will  also  barge  traffic  between  the  docks  and  waterside  premises  in  and  af^out 
Manchester. 

All  towns  in  the  North  Staffordshire  potteries;  also  Newcastle-imder-Lyme, 
Leek,  Macclesfield,  Congleton,  etc. 

Birmingham,  South  Staffordshire,  and  East  Worcestershire. 

Wolverhampton,  etc. 

Dudley  Port,  Tipton,  etc. 

Nottingham,  Shardlow,  etc. 

Leicester,  Loughborough,  etc. 

Derby  and  Burton,  Rugeley  &  Tamworth. 

Wiga'n,  Blackburn,  Chorley,  Acermgton.  Leigh,  Leeds,  etc. 

General  carriers  and  lightermen  to  and  from  the  docks. 

Littleboro',  Todmorden,  Sowerby  Bridge,  Mytholmroyd,  Halifax,  and  other 

Yorkshire  to\vns. 
Bolton,  Bury,  etc. 
General  carriers  to  and  from  Manchester  docks;  on  the  Bridgewater.  Rochdale, 

Ashton,  Bolton  and  Bury,  and  Trent  and  Mersey  Canals;  the  River  Weaver; 

also  Widnes  and  St.  Helens. 
To  and  from  places  on  the  Bridgewater  and  Ship  Canals,  and  also  the  River 

Mersey. 
Between  Manchester,  Dewsbury.  Wakefield,  Huddersfield,  Sowerby  Bridge, 
Halifax,  Todmorden,  Hull,  Goole,  Grimsby,  etc. 


E.  Latimer, 

General  Superintendent. 


Dock  Office,  Manchester,  December  30,  1911 


APPENDIX  VIII. 


THE  PANAMA  CANAL  ACT. 

465 


THE  PANAMA  CANAL  ACT. 

[Public— No.  337.] 

[H.  R.  21969.] 

An  Act  To  provide  for  the  opening,  maintenance,  protection,  and  operation  of  the  Panama  Canal, 
and  the  sanitation  and  government  of  the  Canal  Zone. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United  States  of  America  in 
Congress  assemhled,  That  the  zone  of  land  and  land  under  water  of  the  width  of  ten  miles  extend- 
ing to  the  distance  of  five  miles  on  each  side  of  the  center  line  of  the  route  of  the  canal  now 
being  constructed  thereon,  whicli  zone  begins  in  the  Caribbean  Sea  three  marine  miles  from 
mean  low-water  mark  and  extends  to  and  across  the  Isthmus  of  Panama  mto  the  Pacific  Ocean 
to  the  distance  of  three  marme  miles  from  mean  low-water  mark,  excluding  therefrom  the 
cities  of  Panama  and  Colon  and  tlieir  adjacent  harbors  located  within  said  zone,  as  excepted  in 
the  treaty  with  the  Republic  of  Panama  dated  November  eighteenth,  nineteen  hundred  and 
three,  but  includmg  all  islands  withm  said  described  zone,  and  m  addition  thereto  the  group  of 
islands  m  the  Bay  of  Panama  named  Perico,  Naos,  Culebra,  and  Flamenco,  and  any  lands  and 
waters  outside  of  said  limits  above  described  which  are  necessarj^  or  convenient  or  from  time  to 
time  may  become  necessary  or  convenient  for  the  construction,  mamtenance,  operation,  sani- 
tation, or  protection  of  the  said  canal  or  of  any  auxiliary  canals,  lakes,  or  other  works  necessary 
or  convenient  for  the  construction,  maintenance,  operation,  saltation,  or  protection  of  said 
canal,  the  use,  occupancy,  or  control  whereof  were  granted  to  the  United  States  by  the  treaty 
between  the  United  States  and  the  Republic  of  Panama,  the  ratifications  of  which  were  ex- 
changed on  the  twenty-sixth  day  of  February,  nineteen  hundred  and  four,  shall  be  known  and 
designated  as  the  Canal  Zone,  and  the  canal  now  bemg  constructed  thereon  shall  hereafter  be 
known  and  designated  as  the  Panama  Canal.  The  President  is  authorized,  by  treaty  with  the 
Republic  of  Panama,  to  acquire  any  additional  land  or  land  under  water  not  ah-eady  granted, 
or  which  was  excepted  from  the  grant,  that  he  may  deem  necessary  for  the  operation,  mainte- 
nance, sanitation,  or  protection  of  the  Panama  Canal,  and  to  exchange  any  laud  or  land  under 
water  not  deemed  necessary  for  such  purposes  for  other  land  or  land  under  water  which  may 
be  deemed  necessary  for  such  purposes,  which  additional  land  or  land  under  water  so  acquired 
shall  become  part  of  the  Canal  Zone. 

Sec.  2.  That  all  laws,  orders,  regulations,  and  ordinances  adopted  and  promulgated  m  the 
Canal  Zone  by  order  of  the  Presideirt  for  the  government  and  sanitation  of  the  Canal  Zone  and 
the  construction  of  the  Panama  Canal  ai'e  hereby  ratified  and  confu-med  as  valid  and  binding 
until  Congress  shall  otherwise  provide.  The  existing  courts  established  m  the  Canal  Zone  by 
Executive  order  are  recognized  and  confu-med  to  contmue  in  operation  until  the  courts  pro- 
vided for  in  this  Act  shall  be  established. 

Sec.  3.  That  the  President  is  authorized  to  declare  by  Executive  order  that  all  laud  and 
land  under  water  witliin  the  limits  of  the  Canal  Zone  is  necessary  for  the  construction,  mainte- 
nance, operation,  sanitation,  or  protection  of  the  Panama  Canal,  and  to  extmguish,  by  agree- 
ment when  advisable,  all  claims  and  titles  of  adverse  claimants  and  occupants.  Upoix  failure 
to  secure  by  agreement  title  to  any  such  parcel  of  land  or  land  under  water  the  adverse  claim 
or  occupancy  shall  be  disposed  of  and  title  thereto  secured  in  the  United  States  and  compen- 
sation therefor  fixed  and  paid  in  the  mamier  provided  in  the  aforesaid  treaty  with  the  Republic 
of  Panama,  or  such  modification  of  such  treaty  as  may  hereafter  be  made. 

Sec.  4.  That  when  in  the  judgment  of  the  President  the  construction  of  the  Panama 
Canal  shall  be  sufficiently  advanced  toward  completion  to  render  the  further  services  of  the 

467 


468  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

Isthmian  Canal  Commission  unnecessary  the  President  is  authorized  by  Executive  order  to  dis- 
continue the  Istlimian  Canal  Commission,  wliich,  together  ^vith  the  present  organization,  shall 
then  cease  to  exist;  and  the  President  is  authorized  thereafter  to  complete,  govern,  and  operate 
the  Panama  Canal  and  govern  the  Canal  Zone,  or  cause  them  to  be  completed,  governed,  and 
operated,  through  a  governor  of  the  Panama  Canal  and  such  other  persons  as  he  may  deem 
competent  to  discharge  the  various  duties  connected  wdth  the  completion,  care,  maintenance, 
sanitation,  operation,  government,  and  protection  of  the  canal  and  Canal  Zone.  If  any  of  the 
persons  appointed  or  employed  as  aforesaid  shall  be  persons  in  the  military  or  naval  service  of 
the  United  States,  the  amount  of  the  olTicial  salary  paid  to  any  such  person  shall  be  deducted 
from  the  amount  of  salary  or  compensation  ])ro%'ided  by  or  which  shall  be  fixed  under  the  terms 
of  tliis  Act.  The  governor  of  the  Panama  Canal  shall  be  appointed  by  the  President,  by  and 
with  the  advice  and  consent  of  the  Senate,  commissioned  for  a  term  of  four  years,  and  until 
his  successor  shall  be  appointed  and  qualified.  He  shall  receive  a  salary  of  ten  thousand 
dollars  a  year.  All  other  persons  necessary  for  the  completion,  care,  management,  mainte- 
nance, sanitation,  government,  operation,  and  protection  of  the  Panama  Canal  and  Canal  Zone 
shall  be  appointed  by  the  President,  or  by  his  authority,  removable  at  liis  pleasure,  and  the 
compensation  of  such  persons  shall  be  fixed  by  the  President,  or  by  his  authority,  until  si:ch 
tune  as  Congress  may  by  law  regulate  the  same,  but  salaries  or  compensation  fixed  hereunder 
by  the  President  shall  in  no  instance  exceed  by  more  than  twenty-five  per  centum  the  salary 
or  compensation  paid  for  the  same  or  similar  services  to  persons  employed  by  the  Government 
in  continental  United  States.  That  upon  the  completion  of  the  Panama  Canal  the  President 
shall  cause  the  same  to  be  oflicially  and  formally  opened  for  use  and  operation. 

Before  the  completion  of  the  canal,  the  Commission  of  Arts  may  make  report  to  the  Presi- 
dent of  their  recommendation  regarding  the  artistic  character  of  the  structures  of  the  canal, 
such  report  to  be  transmitted  to  Congress. 

Sec.  5.  That  the  President  is  hereby  authorized  to  prescribe  and  from  time  to  time  change 
the  toUs  that  shall  be  levied  by  the  Government  of  the  United  States  for  the  use  of  the  Panama 
Canal:  Provided,  That  no  toUs,  when  prescribed  as  above,  shall  be  changed,  unless  six  months' 
notice  thereof  shall  have  been  given  by  the  President  by  proclamation.  No  tolls  shall  be  levied 
upon  vessels  engaged  in  the  coastwise  trade  of  the  United  States.  That  section  forty-one 
hundred  and  thirty-two  of  the  Revised  Statutes  is  hereby  amended  to  read  as  follows: 

"Sec.  4132.  Vessels  built  within  the  United  States  and  belonging  wholly  to  citizens  thereof; 
and  vessels  which  may  be  captured  in  war  by  citizens  of  the  United  States  and  lawfully  con- 
demned as  prize,  or  which  may  be  adjudged  to  be  forfeited  for  a  breach  of  the  laws  of  tlie  United 
States;  and  seagoing  vessels,  whether  steam  or  sad,  which  have  been  certified  by  the  Steam- 
boat-Inspection Service  as  safe  to  carry  dry  and  perishable  cargo,  not  more  than  five  years  old 
at  the  time  they  apply  for  registry,  wherever  built,  which  are  to  engage  only  m  trade  ^^•ith 
foreign  countries  or  with  the  Philippine  Islands  and  the  islands  of  Guam  and  Tutuila,  bemg 
wholly  owTied  by  citizens  of  the  United  States  or  corporations  organized  and  chartered  under 
the  laws  of  the  United  States  or  of  any  State  thereof,  the  president  and  managmg  directors 
of  which  shall  be  citizens  of  the  United  States  or  corporations  organized  and  cliartered  under 
the  laws  of  the  United  States  or  of  any  State  thereof,  the  president  and  managing  dkectors  of 
which  shall  be  citizens  of  the  United  States,  and  no  others,  may  be  registered  as  directed  in 
this  title.  Foreign-buUt  vessels  registered  pursuant  to  this  Act  sliaU  not  engage  in  tlie  coast- 
wise trade:  Provided,  That  a  foreign-built  yacht,  pleasure  boat,  or  vessel  not  used  or  intended 
to  be  used  for  trade  admitted  to  American  registry  pursuant  to  this  section  shall  not  be  exempt 
from  the  collection  of  ad  valorem  duty  provided  in  section  thirty-seven  of  the  Act  approved 
August  fifth,  nineteen  hundred  and  nine,  entitled  'An  Act  to  provide  revenue,  ecjualize  duties, 
and  encourage  the  industries  of  the  United  States,  and  for  other  purposes.'  That  all  materials 
of  foreign  production  which  may  be  necessary  for  the  construction  or  repair  of  vessels  built  in 
the  United  States  and  all  such  materials  necessary  for  the  building  or  repair  of  tlieir  machinery 
and  all  articles  necessary  for  their  outfit  and  equipment  may  be  imported  mto  the  United  States 


PANAMA  CANAL  TRAFFIC  AND  TOLLS.  469 

free  of  duty  under  such  regulations  as  the  Secretary  of  the  Treasury  may  prescribe:  Provided 
further,  That  such  vessels  so  admitted  under  the  provisions  of  this  section  may  contract  wath 
the  Postmaster  General  under  the  Act  of  March  third,  eighteen  hundred  and  ninety-one,  enti- 
tled 'An  Act  to  provide  for  ocean  mail  service  between  the  LTnited  States  and  foreign  ports, 
and  to  promote  commerce,'  so  long  as  such  vessels  shall  m  all  respects  comply  with  the  provi- 
sions and  requirements  of  said  Act." 

ToUs  may  be  based  upon  gross  or  net  registered  tonnage,  displacement  tonnage,  or  other- 
wise,  and  may  be  based  on  one  form  of  tonnage  for  warships  and  another  for  ships  of  commerce. 
The  rate  of  tolls  may  be  lower  upon  vessels  in  ballast  than  upon  vessels  carrying  passengers  or 
cargo.  Wlien  based  upon  net  registered  tonnage  for  ships  of  commerce  the  tolls  shall  not 
exceed  one  dollar  and  twenty-five  cents  per  net  registered  ton,  nor  be  less,  other  than  for  ves- 
sels of  the  LTnited  States  and  its  citizens,  than  the  estimated  proportionate  cost  of  the  actual 
maintenance  and  operation  of  the  canal  subject,  however,  to  the  provisions  of  article  nineteen 
of  the  convention  between  the  LTnited  States  and  the  Republic  of  Panama,  entered  mto  Novem- 
ber eighteenth,  nineteen  hundred  and  three.  If  the  tolls  shall  not  be  based  upon  net  registered 
tonnage,  they  shall  not  exceed  the  equivalent  of  one  dollar  and  twent}--five  cents  per  net  regis- 
tered ton  as  nearly  as  the  same  may  be  determmed,  nor  be  less  than  the  equivalent  of  seventy- 
five  cents  per  net  registered  ton.  The  toll  for  each  passenger  shall  not  be  more  than  one  doUar 
and  fifty  cents.  The  President  is  authorized  to  make  and  from  time  to  time  amend  regulations 
governing  the  operation  of  the  Panama  Canal,  and  the  passage  and  control  of  vessels  through 
the  same  or  any  part  thereof,  includmg  the  locks  and  approaches  thereto,  and  all  rules  and 
regulations  affecting  pilots  and  pUotage  in  the  canal  or  the  approaches  thereto  tlirough  the 
adjacent  waters. 

Such  regulations  shall  provide  for  prompt  adjustment  by  agreement  and  immediate  pay- 
ment of  claims  for  damages  which  may  arise  from  injury  to  vessels,  cargo,  or  passengers  from 
the  passing  of  vessels  through  the  locks  under  the  control  of  those  operatmg  them  under  such 
rules  and  regulations.  In  case  of  disagreement  suit  may  be  brought  in  the  district  court  of 
the  Canal  Zone  against  the  governor  of  the  Panama  Canal.  The  hearhig  and  disposition  of 
such  cases  shall  be  expedited  and  the  judgment  shall  be  immediately  paid  out  of  any  moneys 
appropriated  or  allotted  for  canal  operation. 

The  President  shall  provide  a  method  for  the  determination  and  adjustment  of  all  claims 
arising  out  of  personal  injuries  to  employees  thereafter  occuiTing  while  directly  engaged  in 
actual  work  in  comiection  with  the  construction,  maintenance,  operation,  or  sanitation  of  the 
canal  or  of  the  Panama  Railroad,  or  of  any  auxiUary  canals,  locks,  or  other  works  necessary 
and  convenient  for  the  construction,  maintenance,  operation,  or  sanitation  of  the  canal,  whether 
such  mjuries  result  in  death  or  not,  and  prescribe  a  schedule  of  compensation  therefor,  and 
may  revise  and  modify  such  method  and  schedule  at  any  time;  and  such  claims,  to  the  extent 
they  shall  be  allowed  on  such  adjustment,  if  allowed  at  all,  shall  be  paid  out  of  the  moneys 
hereafter  appropriated  for  that  purpose  or  out  of  the  funds  of  the  Panama  Railroad  Company, 
if  said  company  was  responsible  for  said  injury,  as  the  case  may  require.  And  after  such 
method  and  schedule  shaU  be  provided  by  the  President,  the  provisions  of  the  Act  entitled 
"An  Act  granting  to  certain  employees  of  the  United  States  the  right  to  receive  fi-om  it  com- 
pensation for  injuries  sustained  in  the  course  of  then-  employment,"  approved  May  thirtieth, 
nineteen  hundred  and  eight,  and  of  the  Act  entitled  "An  Act  relating  to  injured  employees  on 
the  Isthmian  Canal,"  approved  February  twenty-fourth,  nineteen  hundred  and  nine,  shall  not 
apply  to  personal  injuries  thereafter  received  and  claims  for  which  are  subject  to  determination 
and  adjustment  as  provided  in  tliis  section. 

Sec.  6.  That  the  President  is  authorized  to  cause  to  be  erected,  maintained,  and  operated, 
subject  to  the  International  Convention  and  the  Act  of  Congress  to  regulate  radio  communi- 
cation, at  suitable  places  along  the  Panama  Canal  and  the  coast  adjacent  to  its  two  terminals, 
in  connection  with  the  operation  of  said  canal,  such  wireless  telegraphic  installations  as  he  may 
deem  necessary  for  the  operation,  maintenance,  sanitation,  and  protection  of  said  canal,  and 


470  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

for  other  purposes.  If  it  is  found  necessarj^  to  locate  such  installations  upon  territory  of  the 
Repubhc  of  Panama,  the  President  is  authorized  to  make  such  agreement  with  said  Govern- 
ment as  may  be  necessary,  and  also  to  provide  for  the  acceptance  and  transmission,  by  said 
system,  of  all  private  and  commercial  messages,  and  those  of  the  Government  of  Panama,  on 
such  terms  and  for  such  tolls  as  the  President  may  prescribe:  Provided,  That  the  messages  of 
the  Government  of  the  United  States  and  the  departments  thereof,  and  the  management  of 
the  Panama  Canal,  shall  always  be  given  precedence  over  all  other  messages.  The  President 
is  also  authorized,  in  his  chscretion,  to  enter  into  such  operating  agreements  or  leases  with  any 
private  wireless  company  or  companies  as  may  best  insure  freedom  from  interference  with  the 
wireless  telegraphic  installations  established  by  the  United  States.  The  President  is  also 
authorized  to  establish,  maintain,  and  operate,  through  the  Panama  Railroad  Company  or 
otherwise,  dry  docks,  repair  shops,  yards,  docks,  wharves,  warehouses,  storehouses,  and  other 
necessary  facilities  and  appurtenances  for  the  purpose  of  providing  coal  and  other  materials, 
labor,  repairs,  and  supplies  for  vessels  of  the  Government  of  the  United  States  and,  inciden- 
tally, for  supplying  such  at  reasonable  prices  to  passing  vessels,  in  accordance  vntli  appropria- 
tions hereby  authorized  to  be  made  from  time  to  time  by  Congress  as  a  part  of  the  maintenance 
and  operation  of  the  said  canal.  Moneys  received  from  the  conduct  of  said  business  may  be 
expended  and  reinvested  for  such  purposes  without  being  covered  into  the  Treasury  of  the 
United  States;  and  such  moneys  are  hereby  appropriated  for  such  purposes,  but  all  deposits  of 
such  funds  shall  be  subject  to  the  provisions  of  existing  law  relating  to  the  deposit  of  other 
public  funds  of  the  United  States,  and  any  net  profits  accruing  from  such  business  shall  annu- 
ally be  covered  into  the  Treasury  of  the  United  States.  Monthly  reports  of  such  receipts  and 
expenditures  shall  be  made  to  the  President  by  the  persons  in  charge,  and  annual  reports  shall 
be  made  to  the  Congress. 

Sec.  7.  That  the  governor  of  the  Panama  Canal  shall,  in  connection  with  the  operation  of 
such  canal,  have  official  control  and  jurisdiction  over  the  Canal  Zone  and  shall  perform  all 
duties  in  connection  with  the  civil  government  of  the  Canal  Zone,  which  is  to  be  held,  treated, 
and  governed  as  an  adjunct  of  such  Panama  Canal.  LTnless  in  this  Act  otherwise  provided  all 
existing  laws  of  the  Canal  Zone  referring  to  the  civil  governor  or  the  civil  administration  of 
the  Canal  Zone  shall  be  applicable  to  the  governor  of  the  Panama  Canal,  who  shall  perform  all 
such  executive  and  administrative  duties  required  by  existing  law.  The  President  is  author- 
ized to  determine  or  cause  to  be  determined  what  towns  shall  exist  in  the  Canal  Zone  and  subdivide 
and  from  time  to  time  resubdivide  said  Canal  Zone  into  subdivisions,  to  be  designated  by  name  or 
number,  so  that  there  shall  be  situated  one  town  in  each  subdivision,  and  the  boundaries  of  each 
subdivision  shall  be  clearly  defined.  In  each  town  there  shall  be  a  magistrate's  court  with 
exclusive  original  jurisdiction  coextensive  with  the  subdivision  in  which  it  is  situated  of  all 
civil  cases  in  which  the  principal  sum  claimed  does  not  exceed  three  hundred  dollars,  and  all 
criminal  cases  wherein  the  punishment  that  may  be  imposed  shall  not  exceed  a  fine  of  one  hun- 
dred dollars,  or  imprisonment  not  exceeding  thirty  days,  or  both,  and  all  violations  of  police 
regulations  and  ordinances  and  all  actions  involving  possession  or  title  to  personal  property 
or  the  forcible  entry  and  detainer  of  real  estate.  Such  magistrates  shall  also  hold  preliminary 
investigations  in  charges  of  felony  and  offenses  under  section  ten  of  this  Act,  and  commit  or 
bail  in  bailable  cases  to  the  district  court.  A  sufficient  number  of  magistrates  and  constables, 
who  must  be  citizens  of  the  United  States,  to  conduct  the  business  of  such  courts,  shall  be 
appointed  by  the  governor  of  the  Panama  Canal  for  terms  of  four  years  and  until  their  succes- 
sors are  appointed  and  qualified,  and  the  compensation  of  such  persons  shall  be  fixed  by  the 
President,  or  by  his  authority,  until  such  time  as  Congress  may  by  law  regulate  the  same. 
The  rules  governing  said  courts  and  prescribing  the  duties  of  said  magistrates  and  constables, 
oaths  and  bonds,  the  times  and  places  of  holding  such  courts,  the  disposition  of  fines,  costs, 
forfeitures,  enforcements  of  judgments,  providing  for  appeals  therefrom  to  the  district  court, 
and  the  disposition,  treatment,  and  pardon  of  convicts  shall  be  established  by  order  of  the 
President.  The  governor  of  the  Panama  Canal  shall  appoint  all  notaries  public,  prescribe  their 
powers  and  duties,  their  official  seal,  and  the  fees  to  be  charged  and  collected  by  them. 


PANAilA  CANAL  TRAFFIC  AND  TOLLS.  471 

Sec.  8.  That  there  shall  be  in  the  Canal  Zone  one  district  court  \vith  two  divisions,  one 
including  Balboa  and  the  other  including  Cristobal;  and  one  district  judge  of  the  said  district, 
who  shall  hold  his  court  iii  both  divisions  at  such  time  as  he  may  designate  by  order,  at  least 
once  a  month  in  each  division.  The  rules  of  practice  in  such  district  court  shall  be  prescribed 
or  amended  by  order  of  the  President.  The  said  district  court  shall  have  original  jurisdiction 
of  aU  felony  cases,  of  offenses  arising  xmder  section  ten  of  this  Act,  all  causes  in  equity;  admiralty 
and  all  cases  at  law  involving  principal  sums  exceeding  three  himdred  dollars  and  all  appeals 
from  judgments  rendered  in  magistrates'  courts.  The  jurisdiction  in  admiralty  herein  conferred 
upon  the  district  judge  and  the  district  court  shall  be  the  same  that  is  exercised  by  the  United 
States  district  judges  and  the  United  States  district  courts,  and  the  procedure  and  practice  shall 
also  be  the  same.  The  district  court  or  the  judge  thereof  shall  also  have  jurisdiction  of  aU  other 
matters  and  proceedings  not  herein  provided  for  which  are  now  within  the  jurisdiction  of  the 
Supreme  Court  of  the  Canal  Zone,  of  the  Circuit  Court  of  the  Canal  Zone,  the  District  Court  of 
the  Canal  Zone,  or  the  judges  thereof.  Said  judge  shall  provide  for  the  selection,  summoning, 
serving,  and  compensation  of  jurors  from  among  the  citizens  of  the  United  States,  to  be  subject 
to  jury  duty  in  either  division  of  such  district,  and  a  jury  shall  be  had  in  any  cruninal  case  or  ci\Tl 
case  at  law  originating  in  said  court  on  the  demand  of  either  party.  There  shall  be  a  district 
attorney  and  a  marshal  for  said  district.  It  shall  be  the  duty  of  the  district  attorney  to  conduct 
all  business,  civil  and  cruninal,  for  the  Government,  and  to  advise  the  governor  of  the  Panama 
Canal  on  all  legal  questions  touching  the  operation  of  the  canal  and  the  administration  of  civil 
affairs.  It  shall  be  the  duty  of  the  marshal  to  execute  all  process  of  the  court,  preserve  order 
therein,  and  do  all  things  mcident  to  the  office  of  marshal.  The  district  judge,  the  district 
attorney,  and  the  marshal  shall  be  appointed  by  the  President,  by  and  with  the  advice  and  con- 
sent of  the  Senate,  for  terms  of  four  }'ears  each,  and  imtil  their  successors  are  appointed  and 
qualified,  and  durmg  their  terms  of  office  shall  reside  within  the  Canal  Zone,  and  shall  hold  no 
other  office  nor  serve  on  any  official  board  or  commission  nor  receive  any  emoluments  except 
their  salaries.  The  district  judge  shall  receive  the  same  salary  paid  the  district  judges  of  the 
United  States,  and  shall  appomt  the  clerk  of  said  court,  and  may  appoint  one  assistant  when 
necessary,  who  shall  receive  salaries  to  be  fixed  by  the  President.  The  district  judge  shall  be 
entitled  to  sis  weeks'  leave  of  absence  each  year  with  pay.  During  his  absence  or  during  any 
period  of  disability  or  disqualification  from  sickness  or  otherwdse  to  discharge  his  duties  the  same 
shall  be  temporarily  performed  by  any  circuit  or  district  judge  of  the  United  States  who  may 
be  designated  by  the  President,  and  who,  durmg  such  service,  shall  receive  the  additional  mile- 
age and  per  diem  allowed  by  law  to  district  judges  of  the  United  States  when  holding  court  away 
from  their  homes.  The  district  attorney  and  the  marshal  shall  be  paid  each  a  salary  of  five 
thousand  doUars  per  amium. 

Sec.  9.  That  the  records  of  the  existmg  courts  and  all  causes,  proceedings,  and  criminal 
prosecutions  pending  therein  as  shown  by  the  dockets  thereof,  except  as  herein  otherwise  pro- 
vided, shall  inunediately  upon  the  organization  of  the  courts  created  by  this  Act  be  transferred 
to  such  new  courts  having  jurisdiction  of  like  cases,  be  entered  upon  the  dockets  thereof,  and 
proceed  as  if  they  had  originally  been  brought  therein,  whereupon  aU  the  existing  courts,  except 
the  supreme  court  of  the  Canal  Zone,  shall  cease  to  exist.  The  President  may  continue  the 
supreme  court  of  the  Canal  Zone  and  retain  the  judges  thereof  in  office  for  such  time  as  to  him 
may  seem  necessary  to  determine  ffiiaUy  any  causes  and  proceedings  which  may  be  pending 
therein.  All  laws  of  the  Canal  Zone  imposing  duties  upon  the  clerks  or  ministerial  officers  of 
existing  courts  shall  apply  and  impose  such  duties  upon  the  clerks  and  ministerial  officers  of 
the  new  courts  created  by  this  Act  having  jurisdiction  of  like  cases,  matters,  and  duties. 

All  existing  laws  in  the  Canal  Zone  governing  practice  and  procedure  in  existing  courts 
shall  be  applicable  and  adapted  to  the  practice  and  procedure  in  the  new  courts. 

The  Circuit  Court  of  Appeals  of  the  Fifth  Circuit  of  the  United  States  shall  have  jurisdic- 
tion to  review,  revise,  modify,  reverse,  or  affirm  the  final  judgments  and  decrees  of  the  District 
Court  of  the  Canal  Zone  and  to  render  such  judgments  as  in  the  opinion  of  the  said  appellate 
•court  should  have  been  rendered  by  the  trial  court  in  all  actions  and  proceedings  in  which  the 


472  PANAJVIA  CAXAL  TRAFFIC  AND  TOLLS. 

Constitution,  or  any  statute,  treatj",  title,  right,  or  privilege  of  the  United  States,  is  involved 
and  a  right  thereunder  denied,  and  in  cases  in  which  the  value  in  controversy  exceeds  one 
thousand  dollars,  to  be  ascertained  by  the  oath  of  either  party,  or  by  other  competent  evidence, 
and  also  in  criminal  causes  wherein  the  offense  charged  is  punishable  as  a  felony.  And  such 
appellate  jurisdiction,  subject  to  the  right  of  review  by  or  appeal  to  the  Supreme  Court  of  the 
United  States  as  in  other  cases  authorized  by  law,  may  be  exercised  by  said  circuit  court  of 
appeals  in  the  same  manner,  under  the  same  regulations,  and  by  the  same  procedure  as  nearly 
as  practicable  as  is  done  in  reviewing  the  final  judgments  and  decrees  of  the  district  courts  of 
the  United  States. 

Sec.  10.  That  after  the  Panama  Canal  shall  have  been  completed  and  opened  for  operation 
the  governor  of  the  Panama  Canal  shall  have  the  right  to  make  such  rules  and  regulations, 
subject  to  the  approval  of  the  President,  touching  the  right  of  any  person  to  remain  upon  or 
pass  over  any  part  of  the  Canal  Zone  as  may  be  necessary.  Anj'  person  \aolating  any  of  such 
rules  or  regidations  shall  be  guilty  of  a  misdemeanor,  and  on  conviction  in  the  District  Court 
of  the  Canal  Zone  shall  be  punished  by  a  fine  not  exceeding  five  hundred  dollars  or  by  impris- 
onment not  exceeding  a  year,  or  both,  in  the  discretion  of  the  court.  It  shall  be  unlawful 
for  any  person,  by  any  means  or  in  any  way,  to  injure  or  obstruct,  or  attempt  to  injure  or 
obstruct,  any  part  of  the  Panama  Canal  or  the  locks  thereof  or  the  approaches  thereto.  Any 
person  violating  this  provision  shall  be  guilty  of  a  felony,  and  on  conviction  in  the  District 
Court  of  the  Canal  Zone  shall  be  punished  by  a  fine  not  exceeding  ten  thousand  dollars  or  by 
imprisonment  not  exceeding  twenty  years,  or  both,  in  the  discretion  of  the  court.  If  the  act 
shall  cause  the  death  of  any  person  within  a  year  and  a  day  thereafter,  the  person  so  convicted 
shall  be  guilty  of  murder  and  shall  be  punished  accordingly. 

Sec.  n.  That  section  five  of  the  Act  to  regulate  commerce,  approved  February  fourth, 
eighteen  hundred  and  eighty-seven,  as  heretofore  amended,  is  hereby  amended  by  adding  thei-eto 
a  new  paragraph  at  the  end  thereof,  as  follows: 

"From  and  after  the  first  day  of  July,  nineteen  hundred  and  fourteen,  it  shall  be  unlawful 
for  any  railroad  company  or  other  common  carrier  subject  to  the  Act  to  regulate  commerce  to 
o^vn,  lease,  operate,  control,  or  have  any  interest  whatsoever  (by  stock  ownership  or  other\vise, 
either  directly,  indirectly,  through  any  holding  company,  or  by  stockholders  or  directors  in 
common,  or  in  any  other  manner)  in  any  common  carrier  by  water  operated  through  the  Panama 
Canal  or  elsewhere  with  which  said  railroad  or  other  carrier  aforesaid  does  or  may  compete  for 
traffic  or  any  vessel  carrjdng  freight  or  passengers  upon  said  water  route  or  elsewhere  with  which 
said  railroad  or  other  carrier  aforesaid  does  or  may  compete  for  traffic ;  and  in  case  of  the  viola- 
tion of  this  provision  each  day  in  which  such  violation  continues  shall  be  deemed  a  separate 
offense." 

Jurisdiction  is  hereby  conferred  on  the  Interstate  Commerce  Commission  to  determine  ques- 
tions of  fact  as  to  the  competition  or  possibility  of  competition,  after  full  hearing,  on  the  appli- 
cation of  any  railroad  company  or  other  carrier.  Such  application  may  be  filed  for  the  purpose 
of  determining  whether  any  existing  service  is  in  violation  of  this  section  and  pray  for  an  order 
permitting  the  continuance  of  any  vessel  or  vessels  already  in  operation,  or  for  the  purpose  of 
asking  an  order  to  install  new  service  not  in  conflict  with  the  provisions  of  this  paragraph.  The 
commission  may  on  its  own  motion  or  the' application  of  any  shipper  institute  proceedings  to 
inquire  into  the  operation  of  any  vessel  in  use  by  any  railroad  or  other  carrier  which  has  not 
applied  to  the  commission  and  had  the  question  of  competition  or  the  possibility  of  competition 
determined  as  herein  provided.     In  all  such  cases  the  order  of  said  commission  shall  be  final. 

If  the  Interstate  Commerce  Commission  shall  be  of  the  opinion  that  any  such  existing  speci- 
fied service  by  water  other  than  through  the  Panama  Canal  is  being  operated  in  the  interest  of  the 
pubhc  and  is  of  advantage  to  the  convenience  and  commerce  of  the  people,  and  that  such  exten- 
sion will  neither  exclude,  prevent,  nor  reduce  competition  on  the  route  b}^  water  under  considera- 
tion, the  Interstate  Commerce  Commission  may,  by  order,  extend  the  time  during  which  such 
service  by  water  may  continue  to  be  operated  beyond  July  first,  nineteen  hundred  and  fourteen. 
In  every  case  of  such  extension  the  rates,  schedules,  and  practices  of  such  water  carrier  shall  be 


PANMLi  CANAL  TRAFFIC  AND  TOLLS.  473 

fQed  with  the  Interstate  Commerce  Commission  and  shall  be  subject  to  the  act  to  regulate  com- 
merce and  all  amendments  thereto  in  the  same  manner  and  to  the  same  extent  as  is  the  railroad 
or  other  common  carrier  controlling  such  water  carrier  or  interested  in  any  manner  in  its  opera- 
tion: Provided,  Any  appUcation  for  extension  under  the  terms  of  this  provision  filed  with  the 
Interstate  Commerce  Commission  prior  to  July  first,  nineteen  hundred  and  fourteen,  but  for  any 
reason  not  heard  and  disposed  of  before  said  date,  may  be  considered  and  granted  thereafter. 

Xo  vessel  permitted  to  engage  in  the  coastwise  or  foreign  trade  of  the  United  States  shall 
be  permitted  to  enter  or  pass  through  said  canal  if  such  ship  is  owned,  chartered,  operated, 
or  controlled  by  any  person  or  company  which  is  domg  business  in  violation  of  the  provisions 
of  the  Act  of  Congress  approved  July  second,  eighteen  hundred  and  nmety,  entitled  "An  Act 
to  protect  trade  and  commerce  against  unlawful  restraints  and  monopolies,"  or  the  provisions 
of  sections  seventy-three  to  seventy-seven,  both  inclusive,  of  an  Act  approved  August  twenty- 
seventh,  eighteen  hundred  and  ninety-four,  entitled  "An  Act  to  reduce  taxation,  to  provide 
revenue  for  the  Government,  and  for  other  purposes,"  or  the  provisions  of  any  other  Act  of 
Congress  amending  or  supplementing  the  said  Act  of  July  second,  eighteen  hundred  and 
ninety,  commonly  kiiown  as  the  Sherman  Antitrust  Act,  and  amendments  thereto,  or  said 
sections  of  the  Act  of  August  twenty-seventh,  eighteen  hundred  and  ninety-four.  The  ques- 
tion of  fact  may  be  determined  by  the  judgment  of  any  court  of  the  United  States  of  compe- 
tent jurisdiction  in  any  cause  pending  before  it  to  which  the  owoiers  or  operators  of  such  ship 
are  parties.  Suit  may  be  brought  by  any  shipper  or  by  the  Attorney  General  of  the  United 
States. 

That  section  sLx  of  said  Act  to  regulate  commerce,  as  heretofore  amended,  is  hereby 
amended  by  adding  a  new  paragraph  at  the  end  thereof,  as  follows: 

"When  propert}'  may  be  or  is  transported  from  point  to  point  in  the  United  States  by 
rail  and  water  through  the  Panama  Canal  or  otherwise,  the  transportation  being  by  a  common 
carrier  or  carriers,  and  not  entirely  ^\ithin  the  limits  of  a  single  State,  the  I-nterstate  Com- 
merce Commission  shall  have  jurisdiction  of  such  transportation  and  of  the  carriers,  both  by 
rail  and  by  water,  which  may  or  do  engage  in  the  same,  in  the  following  particulars,  in  addi- 
tion to  the  jurisdiction  given  by  the  Act  to  regulate  commerce,  as  amended  June  eighteenth, 
nineteen  hundred  and  ten: 

"  (a)  To  establish  physical  cormection  between  the  lines  of  the  rail  carrier  and  the  dock 
of  the  water  carrier  by  directing  the  rail  carrier  to  make  suitable  connection  between  its  line 
and  a  track  or  tracks  \yhich  have  been  constructed  from  the  dock  to  the  limits  of  its  right  of 
way,  or  by  du-ecting  either  or  both  the  rail  and  water  carrier,  individually  or  in  comiection 
with  one  another,  to  construct  and  connect  with  the  lines  of  the  rail  carrier  a  spur  track  or 
tracks  to  the  dock.  This  provision  shall  only  apply  where  such  connection  is  reasonably  prac- 
ticable, can  be  made  ^vith  safety  to  the  public,  and  where  the  amount  of  busmess  to  be  han- 
dled is  sufficient  to  justify  the  outla^^ 

"The  commission  shall  have  full  authority  to  determine  the  terms  and  conditions  upon 
which  these  comiecting  tracks,  when  constructed,  shall  be  operated,  and  it  may,  either  in  the 
construction  or  the  operation  of  such  tracks,  determine  what  sum  shall  be  paid  to  or  by  either 
carrier.  The  provisions  of  this  paragraph  shall  extend  to  cases  where  the  dock  is  owned  by 
other  parties  than  the  carrier  involved. 

"  (b)  To  establish  through  routes  and  maximum  joint  rates  between  and  over  such  rail 
and  water  lines,  and  to  determine  all  the  terms  and  conditions  under  which  such  lines  shall 
be  operated  in  the  handling  of  the  traffic  embraced. 

"  (c)  To  establish  maximum  proportional  rates  by  rail  to  and  from  the  ports  to  which  the 
traffic  is  brought,  or  from  which  it  is  taken  by  the  water  carrier,  and  to  determine  to  what 
traffic  and  in  connection  with  what  vessels  and  upon  what  terms  and  conditions  such  rates 
shall  apply.  By  proportional  rates  are  meant  those  which  differ  from  the  corresponding  local 
rates  to  and  from  the  port  and  which  apply  only  to  traffic  which  has  been  brought  to  the  port 
or  is  carried  from  the  port  by  a  common  carrier  by  water. 


474  PANAMA  CANAL  TRAFFIC  AND  TOLLS. 

"  (d)  If  any  rail  rarrier  subject  to  the  Act  to  regulate  commerce  enters  into  arrangements 
with  any  water  carrier  operating  from  a  port  in  the  United  States  to  a  foreign  countiy,  through 
the  Panama  Canal  or  otherwise,  for  the  handling  of  through  business  between  interior  points  of 
the  United  States  and  such  foreign  country,  the  Interstate  Commerce  Commission  may  require 
such  railway  to  enter  into  similar  arrangements  with  any  or  all  other  lines  of  steamships  oper- 
ating from  said  port  to  the  same  foreign  country." 

The  orders  of  the  Interstate  Commerce  Commission  relating  to  this  section  shall  only  be 
made  upon  formal  complaint  or  in  proceedings  instituted  by  the  commission  of  its  own  motion 
and  after  full  hearing.  The  orders  provided  for  in  the  two  amendments  to  the  Act  to  regulate 
commerce  enacted  in  this  section  shall  be  served  in  the  same  manner  and  enforced  by  the  same 
penalties  and  proceedings  as  are  the  orders  of  the  commission  made  under  the  provisions  of 
section  fifteen  of  the  Act  to  regulate  commerce,  as  amended  June  eighteenth,  nineteen  hundred 
and  ten,  and  they  may  be  conditioned  for  the  payment  of  any  sum  or  the  giving  of  security  for 
the  payment  of  any  sum  or  the  discharge  of  any  obligation  which  may  be  required  by  the  terms 
of  said  order. 

Sec.  12.  That  all  laws  and  treaties  relating  to  the  extradition  of  persons  accused  of  crime 
in  force  in  the  United  States,  to  the  extent  that  they  may  not  be  in  conflict  with  or  superseded 
by  any  special  treaty  entered  into  between  the  United  States  and  the  Republic  of  Panama  with 
respect  to  the  Canal  Zone,  and  all  laws  relating  to  the  rendition  of  fugitives  from  justice  as 
between  the  several  States  and  Territories  of  the  United  States,  shall  extend  to  and  be  consid- 
ered in  force  in  the  Canal  Zone,  and  for  such  purposes  and  such  purposes  only  the  Canal  Zone 
shall  be  considered  and  treated  as  an  organized  Territory  of  the  United  States. 

Sec.  13.  That  in  time  of  war  in  wliich  the  United  States  shall  be  engaged,  or  when,  in  the 
opinion  of  the  President,  war  is  imnunent,  such  officer  of  the  Army  as  the  President  may  desig- 
nate shall,  upon  the  order  of  the  President,  assume  and  have  exclusive  authority  and  jurisdiction 
over  the  operation  of  the  Panama  Canal  and  all  of  its  adjuncts,  appendants,  and  appurtenances, 
including  the  entire  control  and  government  of  the  Canal  Zone,  and  during  a  continuance  of 
such  condition  the  governor  of  the  Panama  Canal  shall,  in  all  respects  and  particulars  as  to  the 
operation  of  such  Panama  Canal,  and  all  duties,  matters,  and  transactions  affecting  the  Canal 
Zone,  be  subject  to  the  order  and  direction  of  such  officer  of  the  Army. 

Sec.  14.  That  this  Act  shall  be  known  as,  and  referred  to  as,  the  Panama  Canal  Act,  and  the 
right  to  alter,  amend,  or  repeal  any  or  all  of  its  provisions  or  to  extend,  modify,  or  annul  any 
rule  or  regulation  made  under  its  authority  is  expressly  reserved. 

Approved,  August  24,  1912. 


INDEX. 


INDEX. 


Africa,  coal  supply  and  cost  at  stations  along 
the  routes  from  eastern  United  States  and 

western  Europe,  to 163 

Alabama-Midland  case 73 

Alaska,  vessel  tonnage  of  trade  between  east- 
ern Canada  and  (1910) 33 

American-Hawaiian  Steamship  Co.: 

Agreement  of,  with  Tehuantepec  National 

Railway 52 

Changes  to  Tehuantepec  route 50 

Entrances  and  clearances  of,  1910-11 33 

Importance  of  sugar  traffic  to 52 

Number  of  steamers  operated  by 52 

Policy  of,  regarding  rates  from  New  York.  79 

Route  of 7 

American  ships,  arguments  for  and  against  free 

toUs  for,  on  the  Panama  Canal 196 

Amsterdam: 

City  of,  construction  of  docks  by 135 

Classification  of  vessel   entrances  at 138 

Number  of  vessels  clearing  at  _  _ .-  139 

Port  facilities  at 143 

Port  of.     (Plate  No.  11.) 

Relation  of  North  Sea  Canal  to 143 

Schedule    of    municipal    harbor    dues    at 

port  of 142 

Amsterdam  Canal: 

A  free  waterway 143 

Amount  expended  on  improvement  of 135 

Comparison  of,  with  Delaware  and  Missis- 
sippi Rivers 143 

Connections  with 135 

Construction  costs  and  traffic  of 131-143 

Construction  costs  of — 

1865-1883 134 

1883-1911 -_. 135 

Cost    of    operation    and    maintenance    of, 

1883-1906 141,  142 

Dimensions  of 134 

Expenditures  and  revenues  in  connection 

with 141 

Importance  of 140 

Location  of 133 

Maintained  and  operated  by  the  Govern- 
ment    142 


Amsterdam  Canal — Continued. 

Pilotage  on 142 

Plate  No.  10. 

Purchase  of,  by  the  State. 141 

Receipts  from  tolls  and  harbor  dues,  1876- 

1890 141 

Tolls  on  (see  also  Tolls) 141 

Towage  on 142 

Traffic  of— 

1877-1910 136,  137 

Growth  of  traffic  on 140 

Transshipment  of  commerce  on 139 

Vessels : 

Classification  of,  entering  the 138 

Clearing  via  the 139 

Nationality  of,  entering  and  clearing 

via,  1910 140 

Types  of,  using  the,  1910  - 140 

Army  and  Navy  transports,  toll  recommended 

for,  through  Panama  Canal 206 

Asia,  nearer  Europe  via  Suez  Canal  than  via 

Panama  route 12 

Atlantic  and  Gulf  ports  of  the  United  States, 
number  of  days  saved  for  vessels  of  different 
speeds  by  the  Panama  Canal  route  between 
the,  and  Pacific  ports,  American  and  foreign.         16 
Tradeof,  with  Western,  South,  and  Central 
America,  British  Columbia,  and  Pacific 
countries  east  of  Singapore,  1900,  1910..         43 
Atlantic-Gulf  seaboard  of  United  States: 

Most  of  traffic  by  steamship  lines  between, 

and  region  fi-om  Singapore  to  Yokohama .        1 86 
Reduction  in  length  of  all-water  routes  be- 
tween ports  of,  and  Pacific  ports,  Ameri- 
can and  foreign 14 

Relation  of  canal  tolls  to  the  traffic,  via 
Panama  Canal,  between  the,  and  Japan, 

China,  and  the  Philippines 185 

Relation   of   Panama   Canal   tolls   to   the 
traffic  between  the,  and  Australia  and 

New  Zealand _ . 181 

Relation  of  Panama  Canal  tolls  to  the  traf- 
fic of  the,  with  the  west  coast  of  South 

America 175 

Vessel  tonnage  between  the,   and  Pacific 
South    jVmerica,    Pacific    Mexico,    and 

Hawaii  (1910) 29 

477 


478 


INDEX. 


Atlantic-Giilf  seaboard  of  United  States — Con. 

Vessel  tonnage  of  the  trade  of  the,  with 

Oceania  and  the  Orient  cast  of  Singapore .         29 
Atlantic  ports  (American  and  European),  dis- 
tances from,   to   Pacific   ports  via  Panama 

Canal 13 

Atlantic  ports  of  the  United  States: 

Distances  from,  to  Australia  and  New  Zea- 
land via  Panama,  the  Cape  of  Good 
Hope,  and  the  Straits  of  Magellan 11 

Distances  from,  to  ports  on  the  west  coasts 

of  North,  Central,  and  South  America  _ .  7 

Distances  from,  to  Yokohama,  Sliangliai, 

and  Hongkong  via  Panama  and  Suez 9 

Australasia : 

Eastern  ports  of,  distances  between,  and 

the  North  Atlantic 11,  12,  13 

Nearer  Europe  via  Suez  Canal  than  via 

Panama  route 12 

Nearer  to  New  York  than  to  Liverpool  via 

Panama  Canal 13 

Australia : 

Character  of  shipping,  using  the  Panama 

Canal  between,  and  Europe  _ . . 184 

Coal  supply  and  cost  at  stations  along  the 
routes  from  eastern  United  States  and 
western  Europe  to 163 

Coaling  stations  of 163 

Commerce  of,  route  of  competition  for 184 

Distances  to,  from  Liverpool  via  the  Pan- 
ama and  Suez  routes 12 

Effect   of   tolls   upon   traffic   via   Panama 

Canal  between  Europe  and 183 

European  trade  with  (1909) 26,  27 

Great  coal-shipping  port  of 164 

Reduction  in  expenses  of  vessels  to,  via 

Panama  Canal 182 

Relation  of  Panama  Canal  toUs  to  the 
traffic  between  the  Atlantic-Gulf  sea- 
board of  the  United  States  and 181 

Route  of  vessels  to,  from  the  Atlantic-Gulf 

seaboard  of  LTnited  States 11 

Three  routes  to,  for  vessels 1 63 

Trade  of,  with  Atlantic  and  Gulf  ports  of 

the  United  States,  1900,  1910 43 

Vessel  tonnage  of  trade  between  eastern 

Canada  and  (1910) 33 

Blanket  rates: 

On  transcontinental  traffic 59 

Origin  of 84 

Prevalence  of 85 


Page. 

Blanketing  of  rail  rates 73 

Bridgewatcr  Canal 119 

British  Columbia,  European  trade  with  (1910).         25 

California-Atlantic  Ime 52,  53 

Canada,  competition  of  traffic  from,  through  the 

Panama  Canal 197 

Canada,   eastern,  vessel  tonnage  of  trade  be- 
tween,   and    Alaska,    Chile,    and    Australia 

(1910) 32 

'Canal  Zone,  a  strong  naval  base 193 

Canals : 

Amsterdam,  construction,  costs,  and  traffic 

of 131-143 

Bridgewater 119 

Kaiser  Wilhelm,  traffic,  tolls,  and  revenues 

of 105-116 

Kiel.     (See  Kaiser  Wilhelm  Canal.) 
Manchester,   history,   finances,  and   traffic 

of 117-130 

North-Holland 133 

North  Sea 133 

See  Amsterdam  Canal 131-143 

Panama.     (See  Panama  Canal.) 
Panama  Canal   act  of  August    24,    1912 

(Appendix  VIII) 465-474 

Suez,     dimensions,    financial    and    traffic 

Mstory  of : 89-103 

Cape  Horn  route  for  sailing  vessels 50 

Cargo  tonnage: 

Definition  of 150 

Not  a  basis  for  canal  tolls 152 

Central  America: 

Trade  of,  with  Atlantic  and  Gulf  ports  of 

the  United  States,  1900,  1910 43 

West  coast  of,  distances  to,  from  United 

States  via  Panama  Canal  and  Magellan.       6,  7 
Western,  vessel  tonnage  of  European  trade 

with  (1909) 25 

Chartered  vessels: 

Charges  for  the  use  of 176 

For  heavy  commodities  through  the  Pan- 
ama CanaJ 53 

Items  of  payment  for 176 

Route  of,  from  Australia  to  Atlantic  coast 

of  United  S'tates 183 

Shipper  bears  burden  of  canal  tolls  upon.   198, 199 
ChUe: 

Nitrate  exports  of 175,180 

Trade  of 7 

Vessel  tonnage  of  trade  between,  and  east- 
ern Canada  (1910) 33 


INDEX. 


479 


Page. 

China: 

Distances  to,  from  Atlantic  ports  of   the 

United  States,  via  Panama  and  Suez. ..  9 

Distances  to,  from  Liverjjool  via  the  Pan- 
ama and  Suez  routes 12 

European  trade  ^^^th  (1909) 26,27 

Relation  of  cajial  tolls  to  the  traffic  via 
Panama  Canal  between  Atlantic-Gulf 
seaboard  of  United  States  and 185 

Trade  of,  with  Atlantic  and  Gulf  ports  of 

the  United  States,  1900,  1910 43 

Vessel  tonnage  between  the  United  States 

Atlantic-Gulf  coast  and 29 

Class  rates,  slight  importance  of,  in  transcon- 

tinent  al  shipments 59 

Clearance  statistics  of  vessels: 

American  rule  for 22 

Analysis  of 21 

Regulations  of  foreign  countries  for 21,  22 

Coal: 

A  most  important  item  in  the  choice  of 

ocean  routes 174 

An  important  factor  in  the  use  of  Panama 

Canal 157 

Annual  consumption  of,  by  ocean  vessels.       157 

Bituminous,  British  thermal  units  of,  pur- 
chased by  the  United  States,  1908-1910.        158 

Calorific   value    of,  per  pound,  in   British 

thermal  units 158 

Contract  prices  of,  in  1912  and  1911,  at 
selected  stations  in  different  parts  of  the 
world 159 

Cost  and  supply  of,  at  stations  on  the  routes 
from  eastern  United  States  and  western 
Europe  to  the  Far  East  via  Suez  Canal 
route 160 

Costs  for,  by  tj^ical  steamers.  New  York  to 

Japan  and  the  Philippines,  and  return.   160, 161 

Costs,  illustration  of,  on  a  steamer  from 

New  York  to  Callao  and  return 165 

Efficiency  of  several  kinds  of,  illustrated..        159 

High  grade  of  American  and  Welsh 1 59 

Influence  of  quality  of,  upon  prices 159 

Price  of,  determinant  for 158 

Prices,  method  of   keeping  them  low   at 

Isthmus  of  Panama . 170 

Prices  of — 

At  New  York  not  uniform 161 

In  Europe ...1 ._       161 

Prices  paid  by  the  United  States  Govern- 
ment on  the  Isthmus  of  Panama 167,  168 

Stipulations  in  contracts  for  sale  of 160 

34998°— 12 S2 


Coal — Continued. 

Supply  and  costs  at  stations  along  the 
routes  from  eastern  United  States  and 
western  Europe  to  Australia,  New  Zea- 
land, and  African  ports  via  the  Cape  of 

Good  Hope  route 163 

Supply  of,  along  the  Suez  route 157 

Welsh,  prices  of,  in  1912 160 

Coaling  facilities  and  coal  costs — 

From  eastern  United  States  and  western 
Europe  to  the  Far  East  via  the   Suez 

Canal  route 160 

From  eastern  United  States  and  western 
Europe  to  Australia,  New  Zealand,  and 
African  ports  via  the  Cape  of  Good  Hope 

route 163 

On  the  South  American  or  Magellan  route.  164 

Via  the  Panama  route 166 

Coaling  stations  of  the  world.     (Plate  No.  12.) 
Coaling  stations: 

Supply  and  prices  of  coal  at — 

Adelaide 163 

Aden 162 

Algiers 162 

Azores 161 

Brisbane 1 64 

Cape  Town 163 

Colombo 1 62 

Colon 166-168 

Coronel 164 

Durban 163 

Gibraltar 161 

Hongkong 162 

Honolulu 166 

Iquique 164 

Madeira 166 

Malta 162 

Manila 163 

Mediterranean  stations 166 

Montevideo 165 

Newcastle 164 

Newport  News 166 

New  York 1 66 

Norfolk...- 166 

New  Zealand 164 

Oran 161 

Perim 162 

Port  Said : 162 

Sabang 162 

St.  Lucia 165 

St.  Thomas... 165 

St.  Vincent 163 


480 


INDEX. 


Coaling  stations — Continued. 

Supply  and  prices  of  coal  at — 

San  Francisco 166 

Singapore 162 

Straits  of  Magellan 164 

Suez 162 

Sydney 1 64 

A'alparaiso 1 64 

Coasting  trade  of  the  United  States  via  Straits 

of  Magellan 34 

Coastwise  marine,  monopoly  by 1 96,  1 99 

Coastwise  shipping,  exemption  of,  from  tolls. . .         54 
Colliers    to  be  treated  as  merchant  vessels  in 

Panama  Canal 154 

Commerce : 

Foreign,    of    the    United    States,    vessels 

carrying  the 208,209 

Growth  in  value  of,  between  Europe  and 

Pacific  countries,  1900-10 43 

International,  growth  in  value  of  - 40,  41 

World,  value  of,  1900-1910,  percentages  of 

increase  in - 45 

Competition  of  Panama  and  Suez  Canals  ap- 
preciably affected  by  cost  of  coal 174 

Congress,  text   of   act   by,   regarding  Panama 

Canal  (Appendix  VIII) -  -   465-474 

Dead- weight  capacity  of  vessels 150 

Dead-weight  tonnage,  a  possible  basis  for  canal 

tolls 152,153 

Displacement  tomiage: 

Defil^ed 149 

Not  a  basis  for  merchant-vessel  tolls,  but 

recommended  for  warships 152,  154 

Distances: 

Comparative,  from  New  York  and  Liverpool 
to  New  Zealand,  Australia,  Philippines, 
China,  and  Japan  via  Suez  and  Panama 

Canals. 13 

From  Atlantic  (American  and  European) 

ports  to  Pacific  ports  via  Panama  Canal .  13 

From  Atlantic  and  Gulf  ports  of  the  United 
States  to  Australia  and  New  Zealand 
via  Panama,  the  Cape  of  Good  Hope, 

and  the  Straits  of  Magellan 11 

From    Atlantic    and    Gulf    ports    of    the 

United  States  to  ports  on  the  west  coasts 

of  North,  Central,  and  South  America . .  7 

From  Atlantic  ports  of  the  United  States 

to    Manila  via    the    Panama  and  Suez 

routes  _. - -- 10 

From  Atlantic  ports  of  the  United  States 
to  Yokohama,  Shanghai,  and  Hong- 
kong via  Panama  and  Suez 9 


Page. 

Distances — Continued. 

From  European  ports  to  Pacific  ports  of 
America  via  Panama  and  Straits  of 
Magellan 8 

From  Liverpool  via  the  Panama  and  Suez 
routes  to  Australia,  New  Zealand,  the 
Philippine  Islands,  China,  and  Japan..  12 

From  New  York  and  New  Orleans  to  San 
Francisco  and  Honolulu  via  the  Isthmus 
of  Tehuantepec  and  via  Panama J ..  8 

Not  the  only  determining  factor  in  use  of 

Panama  Canal 173 

Reduction  effected  in,  by  Panama  Canal..    14, 15 

Via  Panama  Canal  and  alternative  routes.     5-17 

Via  Panama  Canal  and  Straits  of  Magellan 
between  eastern  ports  of  the  United 
States  and  ports  of  the  west  coasts  of 

North,  Central,  and  South  America 6 

Docks: 

At  Manchester.     (Plate  No.  9.) 

Construction  of,  by  city  of  Amsterdam.   120, 135 
(See  Plate  11.)    " 
Entrance  statistics  of  vessels: 

American  rule  for 22 

Analysis  of 21 

Regulations  of  foreign  countries  for 21,  22 

Europe : 

Effect  of  tolls  upon  traffic  via  Panama 
Canal  between,  and  Australia  and  New 
Zealand 183 

Relation  of  canal  tolls  to  the  traffic  via 
Panama  Canal  between,  and  the  coun- 
tries east  of  Singapore 1 S8 

Relation  of  Panama  Canal  tolls  to  the 
triiffic  between,  and  the  west  coast  of 

South  America 1 79 

European  ports: 

Distances  from,  to  Pacific  ports  of  America 

via  Panama  and  Straits  of  Magellan.. ,.  8 

Number  of  days  saved  for  vessels  of  differ- 
ent speeds  by  Panama  Canal  route  be- 
tween, and  ports  of  Pacific  America 
and  of  New  Zealand —  17 

Reduction  effected  by  Panama  Canal  in 
distances  from,  to  the  ports  of  the  west 
coast  of  America  and  to  New  Zealand..  15 

European  trade: 

Increase  in,  with  Pacific  countries  east  of 

Singapore,  1900-1910 43 

With  the  Orient  east  of  Singapore  and  with 

Oceania  (1909) 26,27 

With   the   west   coast   of   South  America 

(1909) 22-24 


INDEX. 


481 


European  trade — Continued. 

With  the  west  coast  of  the  United  States, 

British  Columbia,  and  Hawaii  (1910)  .  -         25 
With  western  Central  America  and  Mexico 

(1909) 25 

Foreign  trade  of  the  United  States: 

Decline  of  American  shipping  in 199 

Increase  in  (1900-1911)__ 41,42 

Foreign  trade  of  22  leading  countries,   1900- 

1910,  increase  in  the 41 

See  also  Commerce. 
Formulas  for  determining  rate  of  increase  in 

traffic 40 

Freight  vessels: 

Possible  toll  for,  through  Panama  Canal.        175 

Usual  speed  of 175 

Ik-ench  Canal  Company : 

Amount  paid  to 210 

Records  kept  by_  _ _ 21 

Fuel  expenses,  saving  of,  by  use  of  Panama 

route  from  Europe  to  Chile  (see  also  coal)  . .        181 
Great  Northern  Railway,  estimated  tonnage  of 
interstate  westbound  transcontinental  freight 

received  at  Spokane  via,  in  1906 56 

Gross  tonnage: 

How  determined 149 

Not  a  basis  for  canal  tolls 151,  152 

Gulf  ports  of  the  United  States : 

Distances  from,  to  Australia  and  New  Zea- 
land   via   Panama,    the   Cape   of   Good 

Hope,  and  the  Straits  of  Magellan 11 

Distances  from,  to  ports  on  the  west  coasts 

of  North,  Central,  and  South  America..  7 

Harbor  dues: 

At  port  of  Amsterdam,  schedule  of 142 

On  Kaiser  Wilhelm  Canal 113 

Hawaii : 

European  trade  with  (1910).  _ 25 

Vessel  tonnage  between  the  United  States 

Atlantic-Gulf  coast  and  (1910) 29 

Hay-Pauncefote    treaty,    different    interpreta- 
tions given  to 195 

Honolulu,   distances  to,  from  New  York  and 

New  Orleans 8 

Ijmuiden,  plan  of  harbor  works  at  (facing) 135 

Imports  from  Oceania  and  Orient,  reach  the 

United  States  indirectly 30 

Insurance  rates  less  via  Panama  than  via  Ma- 
gellan         174 

Intercoastal  steamship  lines  and  water  routes. 

(Plate  No.  3.) 
Intercoastal  water  rates  and  transcontinental 
"rail  rates,  interrelation  of 72 


Intercoastal  water  traffic  of  the  United  States, 

1906-1 91 1 50,  51 

International  commerce,  growth  in  value  of 40,  41 

International  Tonnage  Commission,  meeting  of  _         99 
Isthmian  canal,  report  on  the  industrial  and 
commercial  value  of  the    (1899-1901)   (Ap- 
pendix I) . 217-379 

Jager,  J.  G.,  concession  granted  to,  for  con- 
struction of  North  Sea  Canal 133 

Japan : 

Distances  to — 

From  Atlantic   ports   of   the  United 

States,  via  Panama  and  Suez 9 

From  Liverpool,  via  the  Panama  and 

Suez  routes 12 

European  trade  with  (1909).-. 26,27 

Relation  of  canal  tolls  to  the  traffic  via 
Panama    Canal    between    Atlantic-Gulf 

seaboard  of  United  States  and 185 

Trade  of,  wnth  Atlantic  and  Gulf  ports  of 

the  United  States,  1900,  1910 43 

Vessel  tonnage  between  the  United  States 

Atlantic-Gulf  coast  and 29 

Kaiser  Wilhelm  Canal : 

Demurrage  fees  on 401-407 

Dimensions  of 107 

Distances  saved  to  and  from  the  Baltic  by 

using  the 107 

Enlargements  of 107 

Expenditures  for,  1910 115 

Fully  justified  its  construction 116 

German  Government,  expenditure  by,  for 

improvement  of • 116 

Harbor  dues  on 113 

Location  of.  _ 107 

Miscellaneous  charges  on 112 

Net  receipts  do  not  pay  interest  on  invest- 
ment  116 

Opening  of 107 

Pilotage  on 112 

Plate  No.  6. 

Receipts  and  expenditures  on,  1895-1910.    113-115 
Schedule  of  port  charges  and  demurrage 
fees   imposed    by,   admmistration    (Ap- 
pendix V)  '-- 401-407 

Ship  demurrage  on 113 

Statute  of  the  German  Empire  concerning 
charges  for  the  use  of  the  (June  20,  1889), 

Appendix  III 387-391 

Tolls  and  other  charges  for  the  use  of  the 

(Appendix  IV) 393-399 

Tolls  on  {see  also  Tolls) 1 10, 116 

Tonnage  of  vessels  using  the,  1896-1910..        108 


482 


INDEX. 


Kaiser  Wilhelm  Canal — Continued.  page. 

Towage  charges  on 111 

Traffic  history  of  the 108 

Traffic  of,  1910,  origin  and  destination  of 

the -- : --        109 

Traffic,  tolls  and  revenues  of 10.5-1 16 

Vessels,  number  and  net  tonnage  of,  using 

the,  1909-10 110 

Wharfage  dues  on 114 

Kiel  Canal.     {See  Kaiser  Wilhelm  Canal. ) 
Liverpool,  city  of: 

Comparative  distances  from,  and  New 
York  to  New  Zealand,  Australia,  the  Phil- 
ippines, China,  and  Japan  via  Suez  and 

Panama  Canals 1.3 

Distances  from,  via  the  Panama  and  Suez 
routes,  to  Australia,  New  Zealand,  the 

Philippine  Islands,  China,  and  Japan 12 

Farther  than  New  York  to  Australasia  via 

Panama  Canal 13 

Nearer  to  Manila,  China,  and  Japan  via 

Suez  route 12 

Shipping  of 123 

London,  shipping  of 123 

Lumber : 

Eastbound  transcontinental  railroad  rates 

on ..59,68 

Shipment  of,  from  Canada 197 

Water  rates  on 69 

Magellan,  Straits  of: 

Coaling  facilities  \Tia 164 

Equally  distant  from  New  York  by  alterna- 
tive routes 185 

Tonnage  of  vessel  movements  via,  between 

seaboards  of  the  United  States  (1910)..         34 

Traffic  via 181 

Manchester  Canal : 

Act  of  Parliament  regarding  profits  of 121 

Capital  invested  in 120 

Competition  on,  \vith  rail  carriers 123 

Coimections.     (Plate  No.  8.) 
Connections  of — 

With  canals  and  railroads 119 

With  industrial  estabUshments 120 

Cost  of 119 

Expenses  for  maintenance  of  way,  works, 

etc.,  1911 129 

Future  of,  promising 130 

Gross  income  account  of,  1911 128 

History,  finances,  and  traffic  of 1 17-130 

Loading  and  unloading  charges  ofi 125 

Miscellaneous  charges  on 1 27 

Net  revenue  account  of,  1911 130 

No  dividends  on 1 30 


Manchester  Canal — Continued.  page. 

Opening  of.  _ II9 

Physical  features  of 119 

Pilotage  on 125 

Plate  No.  7. 

Quay  porterage  charges  on 126 

Receipts  and  exjienses  of,  1894-1911 127 

"Ship  dues"   and  other  charges  payable 

by  shipowners  on  the  (Appendix  YT) .  409—430 

Ship  dues  on 123,  124 

Three  difficulties  in  management  of 130 

Tolls    and    other    charges    on     {see    aho 

Tolls).. 12.3,  126 

Tolls  on  merchandise  and  other  charges 

payable  by  merchants  (Appendix  VII)  431—164 

Towage  charges  on_ 124 

Traffic: 

Could  be  increased  on 122 

Increase  of ,  on . 123 

Difficulty  of 122 

Expenses  of,  1911 129 

Statistics 121 

Vessels,  number  and  net  tonnage  of,  using 

the,  1894-1910 122 

Manchester,  city  of: 

Advantages  to,  since  opening  of  ship  canal.       123 
Port  and  docks  at.     (Plate  No.  9.) 

Statistics  regarding 123 

Manila : 

Distances  to,  from  the  Atlantic  ports  of  the 
United  States  via  the  Panama  and  Suez 

routes _ 10 

Probable  route  by  freight  vessels  to,  from 

New  York 11 

Measurement  of  vessels,  Moorsom  rules  for 149 

Merchant  ships,  the  basis  or  unit  of  toll  levies 

upon 147-154 

Mexico,  Pacific,   vessel   tonnage  between   the 

United  States  Atlantic-Gulf  coast  and  (1910).         29 
Mexico,    vessel    tonnage    of    European    trade 

Avith  (1909) 25 

Moorsom,  R.,  method  devised  by,  for  the  meas- 
urement of  vessels 149 

Morgan  Line 50 

Navigation  laws,    possible   result   to    Panama 

Canal,  by  changing  the 209 

New  York: 

Comparative  distances  from,  and  Liver- 
pool, to  New  Zealand,  Australia,  Philip- 
pines, China,  and  Japan  via  Suez  and 

Panama  Canals 13 

Distances  from,  to  San  Francisco  and 
Honolidu,  via  Isthmus  of  Tehuantepec 
and  via  Panama 8 


INDEX. 


483 


New  Zealand :  pa«e. 

Coal  supply  and  cost  at  stations  along  the 
routes  from  eastern  United  States  and 
western  Europe  to 163 

Commerce  of,  thl-ough  Panama  Canal, 
with  Europe,  largely  influenced  by  toll 
charges 185 

Distances  to,  from  Liverpool  via  the  Pan- 
ama and  Suez  routes 12 

Distances  to,  from  the  Atlantic-Gulf  ports 
of  the  United  States  via  Panama,  the 
Cape  of  Good  Hope,  and  the  Straits  of 
Magellan 11 

Efi'ect   of   tolls   upon  traffic   via  Panama 

Canal  between  Europe  and 183 

Most  of  commerce  of,  to  United  States,  via 

Panama  Canal 183 

Movement  of  exports  from 1 8.5 

Number  of  days  saved,  for  vessels  of  differ- 
ent speeds,  by  the  Panama  Canal  route 
between  European  ports  and 17 

Reduction  effected  by  the  Panama  Canal 

in  distances  from  European  ports  to 15 

Relation  of  Panama  Canal  tolls  to  the  traf- 
fic between  the  Atlantic-Gulf  seaboard 
of  the  United  States  and 181 

Saving  in  fuel  expenses  from,  via  Panama.        185 

The  only  trans-Pacific  country  nearer  to 

Europe  via  Panama  Canal 14 

Nitrate : 

Exports  of,  19in 180 

Shipments  of,  in  1911 175 

Northern  Pacific  Railway,  tonnage  of  interstate 
west-bound  transcontinental  freight  received 

at  Spokane  (1906)  via •        56 

Ocean  routes: 

Competition  of,  for  traffic  between  Atlantic 

seaboard  of  United  States  and  Orient  ..        186 

Complex  forces  determining 174 

Determination  of 1 74,  200 

From  southern  Europe  to  Pacific  America, 

effect  of  Panama  Canal  upon 9 

Outbound  from  Europe  to  Australia 12 

Outward  from  Sydney,  advantages  of  the 

Panama  Canal  in 27 

Outward  from  Yokohama 27,  28 

Possible     effect    of     trade     requirements 

upon 173,174 

Reduction  effected  in  length  of,  by  the  Pan- 
ama Canal  from  European  ports  to  the 
ports  of  the  west  coast  of  America  and  to 
New  Zealand 15 


Ocean  routes — Continued.  page. 
Reduction  in  length  of,  via  the  Panama 
Canal  between  ports  of  the  Atlantic-Gulf 
seaboard  of  the  United  States  ami  Pa- 
cific ports,  American  and  foreign 14 

Time  saved  by  vessels  usmg  the  Panama 

Canal 16,  17 

Length  not  constant 6 

Coiiditions  affecting  profitableness  of 187 

Oceania : 

European  trade  with  (1 909) 26,  27 

Imports  from,  reach  the  United  States  in- 

du-ectly 30 

Vessel  tonnage  between  the  United  States 
Atlantic-Gulf  coast  and  oriental  countries 
east  of  Singapore  and  countries  of  Oce- 
ania   29 

Ogden  gateway: 

Total  traffic  moving  westward  through  the, 

1906-1909 ^ \ 57 

West  bound  transcontinental  freight  re- 
ceived at  Reno,  Nev.,  via,  in  1908 56 

Oil  as  fuel  for  steamers 169 

Orient : 

Commerce,  to  and  from 188,  189 

Division  of  traffic  between,  and  New  York.        187 
East  of  Singapore,  European  trade  with 

(1909). 26,  27 

East  of  Singapore,  trade  of,  with  Atlantic 
and   Gulf  ports   of   the  United  States, 

1900,  1910 43 

East  of  Singapore,  vessel  tonnage  between 
the  United   States  Atlantic-Gulf  coast 

and .... 29 

Relation  of  canal  toUs  to  the  traffic  via 

Panama  Canal  between  Europe  and  the.       188 
Pacific  America,  number  of  days  saved  for  ves- 
sels of  different  speeds  by  the  Panama  Canal 

route  between  European  ports  antl 17 

Pacific  coast  terminals: 

Water  rates  west  bound  to,  from  New  York 

via  Panama  and  Tehuan tepee  routes 70,  71 

East  bound 72 

Pacific  countries  east  of  Singapore,  European 

trade  of,  increase  m,  1900-1910 43 

Pacific  Mail  Steamship  Co. : 

Control  of 51,  52 

History  of  relations  of,  with  Panama  Rail- 
road          51 

Provides  its  own  coal  at  Acapulco 157 

Wliere  operated 51 


484 


INDEX. 


Pacific  Ocean : 

First  railway  to 49 

Location  of  line  in,  connecting  all  points 

equally  distant  from  Liverpool 12 

Pacific  ports : 

Distances  to —  . 

From  Atlantic   ports   (American  and 

European) —  13 

Six  representative,  via  Panama  Canal 
and  Straits  of  Magellan  from  Atlan- 
tic and  Gulf  ports   of   the  United 

wStates 7 

Pacific  ports,  American  and  foreign : 

Number  of  days  saved  for  vessels  of  differ- 
ent speeds  by  the  Panama  Canal  route 
between  the  Atlantic-Gulf  ports  of  the 

United  States  and  the 16 

Reduction  effected  by  the  Panama  Canal  m 
length  of  all-water  routes  between  ports 
of   the   Atlantic-Gulf   seaboard    of    the 

United  States  and 14 

Pacific  ports  of  America : 

Distances  to,   from   European  ports,  via 

Panama  and  Straits  of  Magellan 8 

Reduction  effected  by  the  Panama  Canal 

in  distances  from  European  ports  to 15 

Pacific  United   States,   trade  of  Europe  with 

(1910) 25 

Panama  Canal: 

A  military  and  naval  asset 193 

Act  of  August  24,  1912,  text  of 465-474 

Advantages  to  passenger  steamers  using 

the 179 

Amortization  fund,  creation  of 194,  210 

Basis  of  tolls  on 151 

Classification  of  estimated  net  tonnage  of, 

in  1915,  1920,  1925 208 

Coaling    facilities    via,     and     alternative 

routes 155-170 

Commercial  usefulness  of,  a  primary  func- 
tion  __        193 

Cost  of -.        193 

Cost  of,  greater  than  the  Suez  Canal 103 

Distances  via,  and  alternative  routes 5-17 

Early  use  of,  largely  by  foreign  vessels  __        194 

Estimated  annual  expenses  of 210 

Function  of 173 

Higher  rates  on,  than  at  Suez,  unwise..       210 

Industrial  effects  of,  by  coal  prices 170 

Industrial  relations  changed  by. 85 

Length  of 6 


Panama  Canal — Continued. 

Minor  factors  affecting  use  of  the 174 

Operating  and  maintenance  cost  of 194 

Passenger  tolls  on,  not  recommended..    153,205 
Points  equally  distant  from  New  York  and 
from  Liverpool  via  the,  and  Suez  route. 
(Plate  No.  2.) 
Principles  and  considerations  that  should 

control  hi  fixing  tolls  of 191-202 

Probable   adjustment  of  transcontinental 
rail    rates    resulting    from    competition 

of 85 

Purposes  of 200 

Rate    problems    that    will    probably    be 

created  by 85 

Relation  of,   to   the   traffic   and   rates   of- 

American  railroads 47-88 

Result  of  applying  business  principles  in 

management  of 211 

Revenue  and  rate  of  tolls  on,   that  wdl 

make  it  commercially  self-supporting..        194 
Revenue  from,  during  first  decade  of  op- 
eration         210 

Revenue  from  outside  operations  of 99 

Revenue  of,  estimated  gross  and  net 208 

Summary    of    probable    effects    of,    upon 

transcontinental  traffic  and  rates 87 

Summary  of  recorded  net  register  tonnage 
of  vessels  employed  in  commerce  that 

would  have  used  the,  in  1909-10 34,  35 

Time  consumed  in  passing  through 8 

Time  saved  by  vessels  using  the 16, 17 

Tolls,  rates  of  (see  also  Tolls)..  194, 195,  203-211 
Tonnage  of  vessels  employed  in  the  com- 
merce that  might  have  advantageously 

used  the,  in  1909-10 19-36 

Trade  routes  and  distances  by  existing  lines 

and  by  the.     (Plate  No.  1.) 
Traffic— 

1910-1915,  i^redictions  for 45,46 

In  1925 46 

Division  of,  through  the 173 

Estimated,  in  1935 210 

Handled  chiefly  by  regular  steamship 

lines 53 

Increase  in  available,  1899  to  1914-15.   37-46 

Increase  in 194 

Use  of,  by  European-Oriental    trade  will 

depend  upon  coal  costs  at  Colon 167 

"Well-defijicd  traffic  zone  of 187 

Will  add  to  military  expenses 194 

Zone  of  competition  for,  with  Suez  Canal . .       201 


INDEX. 


485 


Panama  Canal  act  of  August  24,  1912 465- 

Antitrust  act,  vessels  violating,  forbidden 

to  pass  through  the  canal 

Canal  Zone — 

Extradition  laws  _ 

Boundaries  of 

Govenunent  of 

Civil  government  of  Canal  Zone 

Claims  for  damages  and  personal  injuries.. 

Coaling  facilities,  provision  for 

Coastwise  vessels  freed  from  tolls 

Commission  of  Arts,  report  bj" 

Connections,    physical,    between   rail    and 

water  carriers 

Courts — 

Circuit  Court  of  Appeals,  jurisdiction 

of,  for  Canal  Zone  cases 

District  court,  establishment  of 

Magistrates'  courts 

Supreme  court  of  Canal  Zone 

Temporarj'  continuance  of  existing 

Extradition,  laws  and  treaties  relating  to.. 
Foreign-built  vessels — 

Admitted  to  American  registry 

Not  to  engage  in  coastwise  trade 

Government  of  Canal  Zone 467 

Governor  of  Panama  Canal — 

Appointed  by  President 

Authority  of,  after  opening  of  canal.. 
Official  control  and  jurisdiction  over 

the  Canal  Zone 

Subject  to  Army  officer  in  times  of 

war 

Interstate  Commerce  Commission — 

Additional  jurisdiction  given  to,   for 

traffic  through  the  canal 

Orders  of 

Jurisdiction  of,  regarding  operation  of 

railroad-owned  vessels . .    

Isthmian    Canal    Commission,    discontin- 
uance of 

Misdemeanors,  penalty  for 

Operation  of  the  canal — 

Authorization  for 

Regulations  governing  the,  made  and 

amended  by  the  President 

Panama  Canal,  penalties  for  injury  to 

Passenger  tolls 

Pilots  and  pilotage 

Railroad  companies  forbidden  to  operate 
vessels  through  the  canal  or  elsewhere . . 


474 

473 

474 
467 
470 
470 
469 
470 
468 
468 

473 


471 
471 
470 
471 
467 
474 

468 
468 
468 

468 
472 

470 

474 


473 
474 

472 

468 
472 

468 

469 
472 
469 
469 

472 


468 


473 
467 


469 


Panama  Canal  act  of  August  24,  1912 — Con. 
Rates,  maximum  joint  and  maximum  pro- 
portional, estabUshment  of 473 

Receipts  from  business  of  repairing  and 

furnishing  supplies  to  vessels 470 

Registry  of  vessels,  change  in  the  law  re- 
garding   

Routes,    through,    establishment   of,    over 

rail  and  water  lines 

Sanitation  of  Canal  Zone 

Shipbuilding  material,  foreign,  to  be  ad- 
mitted in  United  States  free  of  duty 

Tolls- 
Limit  of  rate  of 

Method  for  levying 469 

President  to  prescribe 468 

Vessels — 

In  ballast,  tolls  on _ . .       469 

Provision  for   their  repair   and  sup- 

pUes 470 

War,  government  of  zone  and  operation  of 

canal  in  times  of 474 

Wireless  telegraphic  installations 469 

Panama,  Isthmus   of,  vessel  tonnage  engaged 

m  the  present  traffic  across  the 

Panama  Railroad  Co.: 

Completion  of 

Freight  carried  in  1909-10 

History  of  relations   of,  with  Pacific  Mail 

Steamship  Co 

Prices  paid  for  coal  b}^  1905  to  1912  ...   167,  168 

Sale  of  coal  by 157,  166 

Panama  Railroad  Steamship  Co.: 

Expenses  incurred  by  vessels  of 178 

Westbound  rates  by,  from  New  York 79 

Panama,  Republic  of,  annuity  to 210 

Panama  route: 

Advantage  in  fuel  costs  by 166,  169,  170 

Advantages  of 185 

Coaling  facilities  and  coal  costs  via  the —        166 
Importance  of  coaling  facilities  and  prices 

upon  the  use  of 167 

Opening  of 51 

Relative  unimportance  of,  since  1869 51 

Saving  effected  by  use  of 1 80 

Trade  opportunities  via 180 

Water  rates,  westbound,  via  New  York  to 

Pacific  coast  terminals 70,  71 

Eastbound 72 

Will  have  a  monopoly  of  Hawaiian  trade.  _        173 
Passenger    steamers,    advantage    to,    thi'ough 

Panama  Canal 179 


32 


51 
32 


51 


486 


INDEX. 


Passenger  tolls:  Page. 

Not  recommended  for  the  Panama  Canal  _.       153 

On  the  Manchester  Canal 125 

On  the  Suez  Canal 98 

Reasons  why  they  should  not  be  levied  on 

Panama  Canal 205 

Per  diem  costs  of  vessels  at  sea 176-180 

Philippine  Islands: 

Distances    to,    from    Liverpool    via    the 

Panama  and  Suez  routes 12 

European  trade  with  (1909) " 26,27 

Nearer  to  northwestern  Europe  than  to 
eastern    part    of    United    States,    via 

Panama  Canal 13 

Relation  of  canal  toUs  to  the  traffic  via 
Panama   Canal,    between   Atlantic-Gulf 

seaboard  of  United  States  and  the 185 

Pilotage : 

Amsterdam  Canal 142 

Kaiser  Wilhelm  Canal 112 

Manchester  Canal 125 

Suez  Canal 99 

'*  PlimsoU ' '  line  of  vessels 150 

Port  charges  and  demurrage  fees  imposed  by 
the   Kaiser  Wilhelm   Canal   administration, 

schedule  of  (Appendix  V) 401-407 

Prices,  percentages  of  increase  in,  for  decades 

endmg  1909  and  1910 41 

Railroad-owned  vessels,  policy  regardmg 54 

Railroad  rates,  territory  of  keenest  com])etition 

in 85 

Railroad  traffic.     (See  Transcontinental.) 

Eastbound  transcontinental,  volume  of 57 

Westbound  transcontinental,  origm  of 55 

Railroads,  American: 

Policy  of,  regarding  competition  with  coast- 
to-coast  steamship  lines 54,  197 

Relation  of  the  Panama  Canal  to  the  traffic 

and  rates  of 47-88 

Rate  problems  after  the  opening  of  the  Panama 

Canal 85 

Rate  zones,  map  of 61 

Rates: 

By  steamship  lines   differ  fundamentally 

from  chai  ter  rates  _  _ 54 

Class  and  commodity,  from  San  Francisco 
to  Sacramento,  Stockton,  Fresno,  Reno, 

Salt  Lake  City,  and  Denver 80,  8 1 ,  82 

Class  and  commodity  rates  from  Seattle  to 

Spokane,Walla  Walla, Butte,  and  Helena.  83,  84 
Class  and  commodity,  to  New  York  from 
Philadelphia,  Pittsburgh,  Cincumati,  In- 
dianapolis, Chicago,  St.  Louisj  Kansas 
City,  St.  Paul,  and  Omaha 76,77,78 


Rates — Continued.  Page. 

Coast-to-coast,  by  water 69,  70 

Of    American    railroads,    relation    of    the 

Panama  Canal  to  the 47-88 

Rail,  effect  of  Panama  tolls  upon 198, 199 

Toll,  recommended  for  Panama  Canal 205 

Transcontinental.     (See  Transcontinental.) 
Via  the  Panama  and  Tehuantepec  routes, 

no  fixed  relationship  between     70 

Water,  effect  of  Panama  tolls  upon 198,  199 

Reno,  origin  of  traffic  received  at 57 

Rate  case 73 

Routes: 

By  water  between  the  Atlantic  and  Pacific 

seaboards  of  the  L^nited  States  (pi.  3) 49 

Ocean,  "factors  in  determining 5 

Royal  Commission  on  Canals  and  Waterways, 
statement    of,     regarding    the    Manchester 

Canal 123 

Sail  tonnage : 

Decline  in,  from  1873 36 

Statistics  of 35 

Sanitation  on  Canal  Zone,  annual  outlay  for..       210 

Ship  dues  on  the  Manchester  Canal 123,124 

Appendix  VI 409-429 

Shipping,    net    register    tons    of,    that    would 

have  used  an  isthmian  canal  in  1899 21 

South  America: 

Coal  costs  on  the  route  to 164 

Net    register   tonnage   of   vessels   trading 
between  Europe  and   the  west  coast  of 

(1909) 22,  23,  24 

Pacific  ports  of,  distances  to,  from  Euro- 
pean ports  via  Panama  and  Straits  of 

Magellan 8 

Pacific,  vessel  tonnage  between  the  United 

States  Atlantic-Gulf  coast  and  (1910)..         29 
Place  on  west  coast  of,  equally  distant  from 
Europe  via  Panama  and  Straits  of  Ma- 
gellan  -  17 

Rate  for  charter  vessels  to 176 

Relation   of   Panama   Canal   tolls   to   the 
traffic    between   Europe    and    the    west 

coast  of 179 

Relation   of   Panama   Canal   tolls   to    the 
traffic  of  the  Atlantic-Gulf  seaboard  of 
the  United  States  with  the  west  coast  of.        175 
West  coast  of,  distances  to,  from  United 

States  via  Panama  Canal  and  Magellan . .       6,  7 
Western,  trade  of,  with  Atlantic  and  Gulf 

ports  of  the  United  States,  1900,  1910.         43 
Southern  Pacific  Co.,  through  route  by,  between 

Atlantic  and  Pacific  seaboards  _  _ 50,  52 

Spokane  case,  the 73,  84 


INDEX. 


487 


Statistics  of  vessels:  page. 

Entrances  and  clearances,  limitations  of..         21 
Tonnage  that  would  have  been  employed 
in  commerce  through  Panama  Canal  in 

1909-10.. 34,35 

Steamers,  operating  expenses  of  typical 177 

Steamship  lines : 

Intercoastal,    and    water    routes.     (Plate 

No.  3.) 
Relation  of,  with  each  other  for  coast-to- 
coast  traffic 197, 198 

Supply  of  coal  to 157 

Subsidies    to    American    ships,   conditions    of 

effective 199,  202 

Suez  Canal: 

Assets  and  liabilities  of  (1911) 94 

Berthing  or  anchorage  dues  on  . .  ' 99 

British  Government,  interest  in,  by 93 

Coal,  exports  of,  to 163 

Supply  of,  along  the  Suez  route 157,  160 

Cost  of  operating  tj-pical  steamer  using  the.       1 77 

Dimensions  of 91 

Dividends  of 102,  103 

Enlargement  of. 96 

Extra  cost  via,  in  fuel  expenses  of  a  steamer 

between  New  York  and  Manila 169,  170 

Finances  of  construction  of 93 

HigWy  profitable 1 03 

Its  dimensions  and  its  financial  and  traffic 

history 89-1 03 

Large  use  of 44 

Length  of 6 

Minimum   dimensions   of,    and   maximum 
dimensions  of  vessels  using  the,   from 

1869-1911.. 92 

Opening  of 91 

Operating  account  of  the,  for  1911 103 

Operating  ratio  of 102 

Passenger  traffic  of  the 96 

Pilotage  charges  on 99 

Points  equally  distant  from  New  York  and 
from  Liverpool   via   the,    and   Panama 

route.     (Plate  No.  2) 4 

Policy  regarding  tolls  on 207 

Practice  of,  regarding  tolls 151, 153 

Rates  of  toll  thi-ough,  1913. 206 

Receipts    and    disbursements    of,     1870- 

1910 100-101 

Revenues  and  expenses  of 98 

Securities  of 93 

Strong  hold  by,  on  traffic  using 187 

Tolls  and  other  charges  imposed  by  the 

(Appendix  H)  {see  also  Tolls) 381-386 


Suez  Canal — Continued.  page. 

Tolls  on  war  vessels  using  the 154 

Tonnage,  net  of,  distributed  by  nationality 

of  vessels,  1870-1911 97 

Towage  charges  on 99 

Traffic— 

1870-1911 96 

Growth  in 96,97 

History  of 95 

In  1915 46 

Increase  of,  1900-1911 44 

Types  of  cross  sections  of.     (Plate  No.  5.) 
Zone    of    competition    for,    with  Panama 

Canal 187,201 

'  'Sunset-Gulf  Route,"  or  Morgan  Line 50 

Rates  via,  from  New  York  to  Pacific  coast.         80 

Tables  of  distances,  purpose  of 5 

Taft,  President,  on  Panama  Canal  tolls 193 

Tehuantepec,  Isthmus  of: 

Average  cost  of  transferring  freight  at  the . .  8 

Distances  via 8 

Greater  cost  of  transferring  freight  at 8 

Traific  via 33 

Tehuantepec  National  Railway: 

Agreement   of,    \nth.   American-Hawaiian 

Steamship  Co 52 

Traffic  by 8 

Tehuantepec  route: 

Opening  of 52 

•Water  rates,  westbound  via,  New  York  to 

Pacific  coast  terminals 70,  71 

Eastbound 72 

Time  saved  by  using  the  Panama  Canal  between 
Atlantic-Gulf  ports  of  the  United  States  and 

Pacific  ports,  American  and  foreign 16 

Between  European  ports  and  ports  of 

Pacific  America  and  of  New  Zealand.         17 
Tolls: 

Amsterdam  Canal,  abolishment  of  {see  also 

Amsterdam  Canal) 141 

Kaiser  Wilhehn  Canal.. 110,  116 

See  also  Kaiser  Wilhelm  Canal  (Ap- 

pendLx  IV) 393-399 

Manchester  Canal 123,  125,  126 

Appendix   VII    {see  also  Manchester 

Canal) 431-464 

Panama  Canal — 

Arguments  for  and  against  free  tolls 

for  American  ships 196 

Basis  or  unit  of,  upon  merchant  ships 

and  war  vessels 147-154 

Classification  of  estimated  revenue  of, 

at  $1.20  per  net  ton 209,210 


488 


INDEX. 


Tolls — Continued.  Page. 

Panama  Canal — Continued. 

Effect  of,  upon  rail  and  water  rates.   198,  199 
Effect  of,   upon   traffic  via,   between 
Europe    and    Australia    and    New 

Zealand 183 

Exemption  of,  will  benefit  shipowners 

and  charterers 54 

Exemption    of,  vnll  not  affect   rates 

by  regular  steamship  lines 88 

Free,  for  American  ships,  policy  of.-   54,  196 

Fundamental  questions  regarding 196 

Method  of  levy  of 149 

Net  tonnage  the  fairest  basis  for 151, 153 

Objections  to  gross  tonnage,  displace- 
ment tomiage,  and  cargo  tonnage, 

as  a  basis  for 152 

On  war  vessels 154 

Passenger,  not  recommended  for 153,  205 

Prmciples     and    considerations     that 

should  control  m  flxuig  rates  of  _  _    191-202 
Rate  of,  that  will  make  canal  com- 
mercially self-supporting 194,  195 

Rates  of 200,203-211 

Rates  of,  possible  for  typical  vessels..       179 
Reasons  for  making  net   tonnage   a 

basis  for 151, 153 

Reasons  for  rate  recommended 206 

Relation  of,  to  the  traffic  between 
Europe  and  the  west  coast  of  South 

America 179 

Relation  of,  to  the  traffic  between  the 
Atlantic-Gulf  seaboard  of  the  United 
States  and  Australia  and  New  Zea- 
land..  181 

Relation  of,  to  the  traffic  of  the  At- 
lantic-Gulf seaboard  of  the  United 
States  with  the  west  coast  of  South 

America 175 

Relation  of,  to  the  traffic  between 
Europe  and  the  countries  east  of 

Singapore _. 188 

Relation  of,  to  the  traffic  between  the 
Atlantic-Gulf  seaboard  of  United 
States  and  Japan,  China,  and  the 

Philippines 185 

Relation  of,  to  the  volume  of  traffic 

through  the 171-189 

Repayment  of,  not  a  wise  policy 199 

Routes  and  traffic  by  water  between 
seaboards 49 


Tolls — Continued.  page. 

Panama  Canal — Continued. 

Should  be  within  what  the  traffic  will 

bear ._       200 

Steamship  companies'  operating  ex- 
penses increased  by 54 

Summary  of  considerations  that  should 

control  m  fLxing. 201,202 

Theoretically  may  be  equal  to  amount 

vessels  save  by  using  the 157 

Three  conditions  to  be  met  by _  _       206 

Upon  merchant  vessels,  basis  for 151 

(See  also  Panama  Canal.) 
Suez  Canal — 

Passenger,  on  the ^ 98 

Pohcy  regarding 151,  153,207 

Rates  of,  tlirough  the  (1913) . .       206 

Tolls  and  other  charges  imj^sed  by 
the  Suez  Maritime  Canal  Co.  (Ap- 
pendix II) 381-386 

War  vessels 154 

(See  also  Suez  Canal.) 
Tonnage : 

Cargo,  classification  of — ,l 150 

Displacement,   the  basis  for  tolls  of  war 

vessels  using  the  Panama  Canal 154,  207 

Gross — 149 

Net... 149 

The  basis  for  Panama  Canal  tolls 153 

Ratios 150 

Sailing  vessel,  decline  in,  since  1873 36 

Tlirough   the  Panama   Canal,   factors   in- 
fluencing  157 

Use  of  term  La  Suez  Canal  concession  _  _•. .         98 

Vessel 30,  149 

Between  Europe  and  oriental  coun- 
tries east  of  Singapore  and  coun- 
tries of  Oceania  (1909) 26,27 

Between  Europe  and  the  west  coast  of 

South  America  (1909) 22 

Between  Europe  and  western  coast  of 
United  States,  British  Columbia,  and 

Hawaii  (1910) 26,  27 

Difficulty  of  securing  accurate  statis- 
tics of 29 

Employed  in  the  commerce  that 
might  have  advantageously  used  the 

Panama  Canal  m  1909-10 19-36 

Engaged  in  the  present  traffic  across 

the  Isthmus  of  Panama 32 

Of  Eurojioan  trade  with  western  Cen- 
tral AJnerica  and  Mexico  (1909)...         25 


INDEX. 


489 


Tonnage — Continued.  Paga. 

Vessel — Continued . 

Of  the  trade  of  eastern  Canada  with 

Alaska,  Cliile,  and  Australia  (1910) .         32 
Of  the  trade  of  the  Atlantic-Gulf  sea- 
board  of   the   United   States   with 
Oceania    and    the    Orient    east    of 

Singapore 29 

Of  the  trade  of  the  Atlantic-Gulf  sea- 
board of  the  United  States  with  the 
west  coast  of  South  America,  Pacific 

Mexico,  and  Hawaii  (1910) 2S 

Suez  Canal,  1870-1911 196 

Summary  of,  that  would  have  been 
employed  h)  commerce  through  the 

Panama  Canal  in  1909-1910 34,35 

That  would  have  used  a  Panama  Canal 

in  1910,  determination  of 21 

Using  Suez,  Manchester,  Kaiser  Wil- 
helm,  and  North  Sea  Canals,  in- 
crease in 140 

Using  the  Amsterdam  Canal 138-140 

Usmg    the    Kaiser    Wilhelm    Canal, 

1896-1910 108 

Ushag    the    Manchester    .Ship    Canal, 

1894-1911 122 

Using    the    Panama    Canal    in    1915, 

1920,  and  1925 208 

{See  also  Vessel.) 
Tonnage   Commission,   International,   meeting 

of 99 

Towage : 

On  Amsterdam  Canal 142 

On  the  Kaiser  Wilhelm  Canal 111 

On  the  Manchester  Canal 1 24 

On  the  Suez  Canal 99 

Trade,  little,  if  any,  along  Chilean  coast  south 

of  40°  {see  also  Commerce  and  Foreign  Trade) .  7,  181 
Trade  routes  and  distances  by  existing  lines 

and  by  the  Panama  Canal.     (Plate  No.  1.) 
Traffic: 

American  railroads,  relation  of  the  Panama 

Canal  to  the 47-88 

Amsterdam  Canal,  1877-1910 137-140 

East  of  the  Sierra  Nevada  Mountains 87 

History  of  the  Kaiser  Wilhelm  Canal 108 

Influences  determining  routes  for 187 

Intercoastal  water  (1906-1911) 50,51 

Manchester  Ship  Canal 121 

Origin   of,   for    the   coast-to-coast   steam- 
ship lines 75 


TraSic — Continued.  Page. 
Rate  of  increase  in,  rule  for  the  determina- 
tion of 40 

Panama  Canal — 

1900-1915,  how  determined 40 

Comparison  of  statistics  of,  in   1899 

and  1910 39 

Division  of,  thi'ough  the 173 

Factors  influencing  the 157 

Growth  of,  through 206 

In  1899 39 

In  1910 39 

In  1915.. ' 40 

Increase  in,  1899  to  1914-15 37-46 

Marginal 173 

Relation  of  tolls  to  the  volume  of  __    171-189 

Variety  and  destination  of 53 

{See  also  Panama  Canal.) 

Suez  Canal 196 

Transcontinental.     {See  Transcontinental.) 
Transcontinental : 

Commodity  raU  and  water  rates,  east- 
bound  66, 67 

Westbound 63,  64,  65 

Freight,  interstate,  westbound,  estimated 
tonnage  of,  \'ia  Northern  Pacific  Rail- 
way, 1906 56 

Via  Ogden  Gateway,  1908 56 

Via    the    Great   Northern    Railway, 

1906 56 

Rail  rates  and  water  rates,  interrelation  of 

intercoastal 72 

Rail  traffic,  influence  on,  by  water  lines..  84 
Railroad  class  rates — 

Eastbound 62 

Westbound 62 

Railroad  rates 58 

Eastbound  on  lumber 68 

Efi^ect  of  canal  upon  eastbound 87 

Railroad  tariffs,  influenced  by  water  lines.  73 
Railroad  traffic — 

Higlily   profitable    from    the   Central 
West    to    intermediate    points    in 

mountain  States 86 

Volume  and  nature  of 54 

Westbound,  not  all  strictly  transcon- 
tinental    57 

Railroads  and  their  interior  trade 86 

Rate  groups,  map  of 60 

Rate  system,  main  features  of 58 

Rate  zones,  map  of 61 


490 


INDEX. 


Transcontinental — Continued.  Page. 

Rates,  probable  adjustment  of,  resulting 

from  canal  competition 85 

Rates  to  and  from  interior  points,  effect 

of  water  competition  on 75 

Traffic  and  rates,  summary  of  the  probable 

effects  of  the  Panama  Canal  upon 87 

Traffic  of  the  United  States,  routes  for..         49 

Transcontinental  Association 51 

Vessel  tonnage,  definition  of  {see  also  Tonnage).       149 
Vessels : 

Clearance  statistics  for 21,  22 

Cost  of  operating 176,  177,  178 

In  ballast,  rate  of  toll  for,  tlirough  Panama 

Canal -  -    205,  206 

Merchant,  rate  of  toll  for,  through  Panama 

Canal 147-154,205 

Moorsom  system  for  measuring 149 

Nationahty  of,  on  Suez  Canal,  1870-1911.         97 

Naval,  rate  of  toll  for,  through  Panama 

Canal 206,  207 

Number  and  net  tonnage  of,  using  Amster- 
dam Canal 139 

Number  and  net  tonnage  of,  using  Kaiser 
Wilhelm  Canal,  1896-1910 108 

Number  and  net  tonnage  of,  using  the  Man- 
chester Canal,  1894-1912 _.        122 

Number   and  net  tonnage  of,  using  Suez 

Canal 95 

Per   diem   savings   of,   by  using   Panama 

Canal 180 

Shelter-deck  _ 150 

Tonnage  of,  employed  in  the  commerce 
that  might  have  advantageously  used 
the  Panama  Canal  in  1909-10 19-36 


Vessels — Continued,  page. 

Types  of,  using  the  Amsterdam  Canal 140 

WeU-deck 150 

(See  also  Tonnage.) 
War  vessels : 

Basis  for  toUs  of,  on  the  Panama  Canal. . .      147- 

154, 207 
Higher  tolls  on,  than  on  merchant  ships .  _       207 
Water  competition : 

A  factor  m  transcontinental  rail  rates 73 

Effect  of,  on  rates  to  and  from  interior 

points 84 

Effect    of,    on    transcontinental    rates    to 

and  from  interior  points 75 

Water  Imes,  intercoastal: 

Rivalry  of,  for  traffic 74 

Tendency  of,  regarding  rates 74 

Water  rates  and  transcontinental  rail  rates : 

Interrelation  of  intercoastal 72 

Westbound,  via  Panama  and  Tehuantepec 
routes.  New  York  to  Pacific  coast  termi- 
nals  70,71 

Eastbound 72 

Water  rates  between  the  Atlantic  and  Pacific 

seaboards  of  the  United  States 49 

Water  routes,  and  intercoastal  steamship  lines. 

(Plate  No.  3.) 
Water    shipments,    effect    of,    upon    interior 

jjoints 84 

Water  traffic: 

Eastbound  and  westbound 58 

Intercoastal,  1906-1911 50,51 

Westbound,  volume  of 55 

Welsh  coal,  prices  of,  m  1912 160 


o 


Date  Due 


/ 


M:. 


M 


i 

f 


PANAMA  CANAL 
TRAFFIC  AND  TOLLS 

REPORT  BY 

EMORY  R.  JOHNSON 

SPECIAL  COMMISSIONER  ON  PANAMA 
CANAL  TRAFFIC  AND  TOLLS 


^ 


FOLDED  PLATES 

1.  Trade  routes  and  distances  by  existing  lines  and 

Panama  Canal. 

2.  Points  equally  distant  from  New  York  and  from 

pool  via  the  Panama  and  Suez  routes. 

3.  Intercoastal  steamship  lines  and  water  routes. 

4.  Suez  Canal. 

5.  Suez  Canal,  types  of  cross  sections. 

6.  Kaiser  Wilhelm  Canal. 

7.  The  Manchester  Canal. 

8.  The  Manchester  Canal  and  connections 

9.  The  Manchester  port  and  docks. 
10.  Amsterdam  or  North  Sea  Canal. 
IL  The  port  of  Amsterdam. 
12.  Coaling  stations  of  the  world. 


by  the 
Liver- 


Plate  I. 


Plate  2 


Plate  3. 


Plate  5. 


SUEZ   CJSJSiJsJ^ 

TYI^ES  or  CROSS    SECTIONS 


BBE^e^i^sse 


SCALE 


J 


♦OT 


I.  Regions  of  Low  Banks 

Material,   Mud. 


>i}}m/m///m/////////mm 


-^  _  ifeanLotr  Tide 


__] ZZ'T'OO ''""""1     -''■'' 

u. ^3<yfoe •L-trrrrnnni/"/'"""" 

f9MMijjill  II  Ii33rilll/f  Ijlinnnminniiiih  II II  rni  nut  firrnirir  II  rtnwiiM  HI  MMMiHtflTlll  It  1 1  IflJ        ^^^^    ^^^^ 

II.  Regions  of  Low  Banks. 

Material,  Sand  and  Hard  Clay. 


.  Regions  of  the  Entrances 

Material,  Sand  and  Hard  Cla^. 


n^ 


mwwmmvwiim/jjjmi 


Metn  LowT/tfo 


^ ^ "-  ijo'rda-  -  -  - -"-  - 

^'PWf^/ZfiW  '■  'ffiffttfffffiWfirtfffff/fffffff^l^^^^fftfffW^t 

IV.  Regions  of  Bitter  Lakes. 
JL  Northern  Section. B  Southern  Section. 


vt///m//^//m///////^wm 


ocV" 


••JI ^•■rtf'^g??^^- V33'r>00 i l>r?^^i^--  T Za^ 

*1  *^     ^T'rii""rmmii'iimniirTr'iiiiiii'iiiiiiiiiiii  i  juiji  i  iliini  irirnn  iiirmf    •  •  •  —r^^—  ■  •  •  •  •♦■■^^—  «-.  ...1  ...  -— ^^^^.  •  ^^^  -  -  -  *  •  •  •  •*  **  -^ 

U- —aam/M J 


(OOJ 


Legend. 

Cross  Section  in  1884- CrossSection  in  1908 

Cross  Section  of  project  be^un  in  1902 Cross  Section  of  project  authorized  1909, 


to  be  completed 


?»rqi« 
9lS- 


^ 


Plate  6. 


0  ^Vmsleb^"  otd 


Plate  7. 


THE    :MANCHESTER    CJsJSiJ^l^ 
1912 


SCAJUE 


^ 


J^ 


Plate  8. 


THE    MANCHESTER    CANAL  AND   CONNECTIONS    1912 


34998°— 12 


Plate  9. 


£CCLES  STATIOl 


ECCLE3         NEW     \\  /tOAO  \\        ||       ||  ||       , 

EAST 


^      THE    MA>TCHESTER    PORT 
AXD    DOCKS 


Plate  II. 


Thomas  O  W9/}ifetcr7 


Plate  12 


Panama  canal  IraHic  and  tolls  mam 
386J66p 


3  lEbE  03015  3^Sfl 


